Tuesday, January 19, 2016

Iowa, Ethanol, Cruz

Iowa governor Terry Branstad wants Ted Cruz defeated - CNNPolitics.com:

It really doesn't take any courage to be for bigger government in America today, but it takes A LOT to be for smaller government!

The uneasy alliance between Republicans and Gasohol subsidies has been questionable for a long time -- and no doubt, the fact that Iowa has the caucuses has played a big part in calculations related to that.

Well, Ted Cruz has come out and said NO to Gasohol subsidies! Trump is all for them ... as are the other Republican candidates, and no surprise, Hillary and Bernie. Let's be honest, bigger government has been significantly bi-partisan for a long time -- sure, Democrats want MORE, but Republicans have definitely been pandering away with a "more as well".

Gasohol never made environmental or oil supply sense -- it takes about 1.3 gal of oil in fertilizer, diesel, electricity, etc to produce a gallon of ethanol.

What it DID make HUGE sense for was to help the price of corn go up and to build a lot of ethanol plants in MN, IA, IL, etc.  It DID help the farm economy.

However, the farmers adjusted. The price of corn went up, so they planted more -- MUCH MORE, so the price has now fallen and the as with other "farm programs", removing this one now is going to be PAINFUL, just like the Reagan removal of some of the programs back in the '80s.

I love farming. I have loved ones farming. I love BIG TRACTORS! ... but the ethanol government program is just like all the other farm programs in the past. It is a lie. Gasohol isn't saving anybody anything, but it no doubt IS propping up the price of corn somewhat even at this low price level.

Government programs are like drugs or alcohol ... they may give a "boost" in SOME situations, but EVENTUALLY they ALWAYS cause despair. For some of them ... like FICA, that may take many decades, or even a century, but we can certainly see the end from here on that as well.

With a heavy heart, I support the Cruz position. It may well kill him in IA, but having the government create the winners and losers in the market simply doesn't work -- for anyone! It builds overcapacity and ends up causing oversupply, and then the government eventually decides or is forced by economic pressure to remove or modify the program anyway.

Politics SUCKS! ... that is why we need SMALLER GOVERNMENT!

'via Blog this'

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