Saturday, March 10, 2007

One Thing Leads To Another

I have written previously about the irrational ethanol policy of the U.S. government. On the one hand they heavily subsidize ethanol based on U.S. corn with the alleged intent of reducing dependence on oil imported from hostile countries like Iran, Saudi Arabia and Venezuela. On the other hand they slap heavy tariffs on ethanol from Brazil, whose sugar is far more suitable than corn for producing ethanol, thereby negating the oil dependence reducing effect of the first policy. The real intent behind this scam -supported both by President Bush and Democratic leaders like Hillary Clinton and Barack Obama- is to benefit the parasitical U.S. farm lobby, at the expence of Brazilian sugar producers, U.S. taxpayers and consumers and corn consumers in Mexico (and elsewhere).

Now we see an interesting article about another effect of the priviliges given to corn farmers-meat prices will rise too as the cost of feeding animals with corn soars. While Democratic leaders like Hillary Clinton and Barack Obama claim to be concerned about the plight of low income workers in America, they support policies that raise food prices and therefore lower the real income of low income workers,


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