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Politics : View from the Center and Left
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To: Lane3 who wrote (67288)5/21/2008 11:39:31 AM
From: TimF  Read Replies (1) of 542655
 
The folks who got the ethanol subsidies didn't make money beyond the subsidy money?

Certainly if we got rid of the subsidies, the import barriers AND the legal requirements (10% ethanol is mandated in many places) mass conversion of corn to ethanol for fuel wouldn't be profitable.

How much of such conversion might be profitable to what extent and to whom, if you only had one or two of these factors might be a bit more difficult to disentangle, but even with the legal requirements and the import barriers, but without the subsidies, the extent of the current use of corn to make alcohol for fuel wouldn't be profitable. So at the margin the ethanol subsidies do cause people to do activities that don't make economic sense without the subsidies.

And that's hardly unusual with subsidies.
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