The GOP's Ethanol Problem
By now, it is well known that the production of ethanol for use as an automotive fuel is a disaster. With nearly half of America's corn crop devoted to ethanol and large portions of former wheat fields converted to growing corn, the prices of these agricultural staples have skyrocketed, pinching the purses of American families and causing widespread hunger in the Third World.
The production and transportation of ethanol uses more energy than ethanol yields. State and Federal ethanol subsidies cost American taxpayers billions, while increasing the price of fuel at the pump and lowering the mileage of consumers' vehicles.
The folly of ethanol is so obvious that prominent environmentalists - including Al Gore - have now turned against it.
Ironically, ethanol's most vocal proponents are now Republican politicians.
Mitch Daniels is a forthright defender; since he became Governor of Indiana, the number of ethanol plants in his state have risen from one to thirteen and he set a goal of producing 1 billion gallons of the stuff.
Yesterday, Minnesota Governor Tim Pawlenty defended the ethanol industry, saying, "We can't just pull the rug out from under the industry. There are going to have to be some changes, but we have to be fair-minded about it." Pawlenty previously signed legislation mandating that all automotive fuel in Minnesota must contain a minimum of 20% ethanol by 2013.
And Newt Gingrich has recently reiterated his support for ethanol, drawing withering criticism from the Wall Street Journal, which sneered, "This doesn't bode well for his judgment as a president. Even Al Gore now admits that the only reason he supported ethanol in 2000 was to goose his presidential prospects, and the only difference now between Al and Newt is that Al admits he was wrong."
Daniels and Pawlenty, of course, have been looking after the narrow interest of their farming and ethanol-producing constituents. But every Republican candidate shrinks from telling the truth about ethanol, for fear of the agrarian caucus-goers of the great state of Iowa.
With even conservative stalwarts afraid to challenge the monumental folly of ethanol, how can we ever drive a stake in the heart of this beast?
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Aug '10
Re: The GOP's Ethanol Problem
Exactly. Well said. Even Newt got on the bandwagon a month ago. He defended it on Fox, saying "Reagan did it". We should not vote for any candidate that is so unprincipled.
It's beyond stupid, and is making us pariahs in poor countries. All of the fed's corrupt subsidies must be eliminated - unless they can be proven to be in the national interest.
Dec '10
Re: The GOP's Ethanol Problem
I hate ethanol. I have always hated ethanol. Its such a blatant vote buying scheme and it is killing people. People around the world are starving to death so US politicians can buy votes in states that are only important because those states just so happen to hold their primaries first. There is not now, nor has their ever been, a reason to invest in ethanol. Out of all the so-called "green" energy sources ethanol has to be the worst.
Apr '11
Re: The GOP's Ethanol Problem
It's understandable (if regrettable) that two of the ethanol proponents you cite are governors. Look at it from their perspective: liberals pushed ethanol subsidies, which Republicans might have disliked philosophically, but they brought money into the state. Now those same liberals, having built an industry that employs a not insignificant number of workers, want to pull the rug out.
Even though eliminating the subsidies is the right policy, you can see why even a Republican governor in this position might dissemble.
What Republicans need to do is to use this little saga as an example of the problems of pursuing a "progressive" agenda. FDR wanted us to try everything, the more experimentation the better. Here's a perfect example of why that's a terrible idea. Our little experiment with ethanol has left us with a greater federal debt burden, environmental problems, higher food prices, and, worse of all, a regulatory and legislative framework that, once built, is nearly impossible to get rid of.
Republicans need to do a better job of arguing these larger philosophical points, not just fighting isolated skirmishes.
Edited on Apr 28, 2011 at 2:15pmJul '10
Re: The GOP's Ethanol Problem
How about a GOP candidate (Rudy Giuliani comes to mind) announcing that he will not participate in the Iowa caucuses because he is committed to end ethanol subsidies and mandates?
Giuliani to ethanol moochers: See you in New Hampshire...
Edited on Apr 28, 2011 at 1:06pmAug '10
Re: The GOP's Ethanol Problem
You ought to take a gander at what they're trying to do to Avgas. Since they can't burn ethanol blends, they have a biofuel threshold they have to hit so the price of avgas may be doubling or tripling pretty soon.
Guess the pilots lobby doesn't have many friends either, like the rest of fuel consumers in America.
Ethanol is driving the price of corn to some very high prices right now. Here in the midwest we haven't seen 7.50 bushels since the big floods in 2008 across Iowa.
Makes for mighty dear tortillas.
Apr '11
Re: The GOP's Ethanol Problem
As an avid car and motorcycle enthusiast, I absolutely adore ethanol. It is 114 octane goodness, making it a fantastic additive to gasoline for newer vehicles that can deal with it. Older vehicles lack the fuel management required and often contain rubber fuel line components that decay quickly when exposed to it, so buyer beware. This also goes for any gas-powered tools such as lawnmowers and chainsaws that will suffer similar issues.
Regarding the economics, high demand for a product is a good thing in a free market. However, government meddling causes market distortions, which create bubbles, reward friends of those in power and typically cause a range of unintended consequences. The price of corn will equalize over time as more land is used for it chasing after the profit incentives. Eventually, if the subsidy ends, there will be a glut of the stuff laying around and the price will drop through the floor causing waste and calls on the government to provide financial aid to the corn farmers.
So, yes. Get the government out of the ethanol subsidy business and let those of us who actually want the stuff buy it on the open market.
Jul '10
Re: The GOP's Ethanol Problem
kesbar:
So, yes. Get the government out of the ethanol subsidy business and let those of us who actually want the stuff buy it on the open market. · Apr 28 at 2:25pm
Without government mandates, there won't be a market for the stuff, unless you want to buy it as an additive.
Edited on Apr 28, 2011 at 2:43pmJun '10
Re: The GOP's Ethanol Problem
I was raised on a family farm in the west. My Dad worked his guts out raising crops (corn was not among them), and received not a cent in subsidy payments. Frankly, he would have been offended had someone from the government offered them to him.
The whole ethanol thing is a big scam. The people who invested in ethanol plants should be treated just like any other venture capitalist--if the company can't compete, tough luck, you lose your money. If you invest in a business that survives solely based on subsidies, double tough luck.
By subsidizing ethanol, solar and wind energy, all we've done is stand the risk/reward equation on its head, and have created a group of corporations who survive solely on the economic equivalent of an entitlement project.
I'm almost the point where I will support whichever Republican candidate is most adamant about his intent to end these kinds of absurdly anti-competitive, anti-market corporate welfare.
There's a Shell station in my neighborhood that advertises that it does not put ethanol in its gas. I now buy exclusively from them.
Edited on Apr 28, 2011 at 2:44pmOct '10
Re: The GOP's Ethanol Problem
The Republicans are just another disgusting group of kissups who don't really give a damn about anything other than their next election. I'd like to hold my nose and vote for them but I'd be dead of suffocation before I could get to the polls.
Tea Party = Third Party. But let's wait until after the 2012 elections and first try to throw as many incumbents out as possible. Then, threaten the remainders with skunk juice if they haven't got the cajones to either take over the GOP or start a suitable replacement.
The GOP started as a third party and did OK on principles for a while before they, also, degenerated. Jefferson was right, a little revolution and bloodshed is good for a nation. We're going out of business anyway. Why not at least try integrity as a solution?
Jul '10
Re: The GOP's Ethanol Problem
Not much to add here as most of the high points have been hit. These kinds of subsidies are blatantly unconstitutional. The federal government has zero mandate to subsidize what some farmer does on his land in Iowa. One more spending program needing to be eliminated in a sea of programs.
Oct '10
Re: The GOP's Ethanol Problem
Just more of the same political and financial huckstering...
Let the markets work, corn mash booze is taxable.
Dec '10
Re: The GOP's Ethanol Problem
Tea Party does NOT = Third Party. That would be true disaster for this country. Tea Party means coming to dominate the Republican Party. There is no other viable option.
Nov '10
Re: The GOP's Ethanol Problem
I agree, exactly.
Oct '10
Re: The GOP's Ethanol Problem
"Daniels and Pawlenty, of course, have been looking after the narrow interest of their farming and ethanol-producing constituents. But every Republican candidate shrinks from telling the truth about ethanol, for fear of the agrarian caucus-goers of the great state of Iowa."
It's time that Congress act in the interest of the nation, "to promote the general welfare", above their narrow constitutuencies, and voters do likewise or we will never get out of the mess we are in!
May '10
Re: The GOP's Ethanol Problem
Say what we will about John McCain, but he had the guts to tell Iowa the hard truth. Bravo to him.
Ethanol is killer on boat motors, btw. I had an $800 fix last year that was due to ethanol's tendency to eat away at rubber seals. Thanks, feds.
Sep '10
Re: The GOP's Ethanol Problem
Are there really enough farmers out there to matter? I mean, is that a group that can sway an election? Why not try pandering to the consumers instead?
Anyway, corn used for ethanol is corn that can't be used to make bourbon (I hear you can eat the stuff too)
Jan '11
Re: The GOP's Ethanol Problem
I don't get it. I ride motorcycles, too, and riding my BMW 1150RT from California to the east coast in 2005, using mostly non-ethanol gasoline, I got 46 to 51 miles per gallon. In my state, only ethanol-gas is available and I now get 36 to 38 mpg. That's a common experience. So much for that goodness. As you point out, it eats the hell out of seals and metals, especially aluminum. If you were also a boat enthusiast you'd be worried about the integrity of your fuel tank, unless it was stainless steel. And making fuel out of food is ridiculous - unless you own Archer Daniels Midland Company stock. Waiting for the price of corn to "equalize" is like waiting for Godot - it's a pipe-dream. Demand is always high for fuel; sadly more people are being priced out of that market by rising costs.
When it takes more energy to make an energy end-product, it's time to stop believing it will eventually work out in the end. It's just the end.
Jul '10
Re: The GOP's Ethanol Problem
Ironically, by the way, ethanol producers have another new worry. A byproduct of ethanol production is something called distillers grain, which they sell as livestock feed. Their industry association now warns there is so much of this stuff that the price is crashing - there just aren't enough farm critters to consume it.
I guess that means Americans will soon be enjoying cheaper filet mignon while children in Uganda starve.
Jul '10
Re: The GOP's Ethanol Problem
This is a classic example of a government program intended to justify a catch phrase, in this case renewable energy. The whole ethanol enterprise was another experimental program that achieved immortality by lobbying. Any presidential candidate that wants to be taken seriously needs to advocate putting this shaggy dog to sleep.
Dec '10
Re: The GOP's Ethanol Problem
"To me, it is so odd that the answer to our problems is green energy. It plays a curiously big part in these investments. Now, green energy sounds…ideas there… I’m fine with. We should all be fine with. I’m in favor of a sound all-of-the-above approach to energy independence. But all of the above means conventional sources of energy. That kind that we, you know, actually use today reliably to fuel our economy. Our own oil, for one. And our natural gas, our coal, our nuclear.
"But in Washington, they have done everything in their power to stymie responsible domestic drilling. That means hundreds of thousands of well-paying jobs will not be created. That means Americans will pay more at the pump. It means that we are continuing, then, to transfer hundreds of billions of your U.S. dollars to foreign regimes to purchase energy from them. They do not have America’s best interest at heart. This is dangerous. This is insane."
Edited on Apr 28, 2011 at 8:02pm