Quote:
Originally Posted by Mars
the ethanol effect — a consequence of the US stampede to corn-based ethanol as an energy substitute for oil, whose major wellsprings, of course, are in regions that even more grievously defy international order.
In the United States, too, the ethanol effect has raised food prices over a broad range, including other crops, livestock and poultry.
|
That is a great support of free trade. If we didn't have such high tarrifs and regulations on importing sugar cane and beets from other countries, they could be used for ethanol instead of corn which would have a minimal effect on the price of staple foods like breads, beef, poultry, etc.
Instead, by restricting trade and subsidizing corn for ethanol, the government has actually made matters worse. We have actually increased the cost of living for everyone, even those that don't consume a lot of energy ... typically the poor.