And for the next bailout trick...


Ethanol
Ethanol is already the most heavily subsidized fuel on the planet. The last round of laws designed to help ethanol production screwed up food production all over the world. And here. And let's not forget here.

It seems that ethanol costs more to produce than gasoline. delivers less power, and doesn't pollute any less. If you factor in production, it may actually pollute more.

But ladies and gentlemen, that doesn't matter. Under the standards introduced under the Bushleague Administration, it only matters if the industry is "too big to fail."

So the ethanol lobby wants a bailout.

The commodity bust has clobbered corn ethanol, whose energy inefficiencies require high oil prices to be competitive. The price of ethanol at the pump has fallen nearly in half in recent months to $1.60 from $2.90 per gallon due to lower commodity prices, and that lower price now barely covers production costs even after accounting for federal subsidies. Three major producers are in or near bankruptcy, including giant VeraSun Energy.

So here they go again back to the taxpayer for help. The Renewable Fuels Association, the industry lobby, is seeking $1 billion in short-term credit from the government to help plants stay in business and up to $50 billion in loan guarantees to finance expansion. The lobby would also like Congress to ease the 10% limit on how much ethanol can be added to gasoline for conventional cars and trucks -- never mind the potential damage to engines from such an unproven mix.

Of course, the ethanol industry wouldn't even exist without the more than $25 billion in taxpayer handouts over the past 20 years. Congress only recently passed energy and farm bills that further greased ethanol production with a 51 cent a gallon tax credit, corn subsidies, plus increasingly stringent biofuel mandates. We were told, as usual, that profitability was just around the corner.

Ladies and gentlemen, this proves exactly how insane government has become.

The most heavily subsidized fuel on the planet, derived from the most heavily subsidized crop on the planet, can't profitably compete against low gas prices without continuous government bailouts and laws forcing people to use it.

Doesn't this prove that subsidies are a terrible idea?

Doesn't this prove that bailouts destroy the free market?

Doesn't this prove that the only way to protect individuals is to make government smaller than absolutely necessary??

KYFHO ladies and gentlemen. It may be the only chance of salvation you get.

— NeoWayland

Posted: Wed - December 24, 2008 at 02:34 PM  Tag


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