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Non-Tech : $2 or higher gas - Can ethanol make a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (45)	10/16/2004 2:31:23 PM
From: TimF	Read Replies (1) \| Respond to of 2801

If you have price supports you can get overproduction. With so much product available the price will tend to go down. The government can buy up supply but if there is no need for it then why? You just have to destroy it or pay to store it. If the government is going to keep the price high it might as well do so by decreasing supply rather then encouraging supply and then buying it up. Personally I think the government should not try to support or limit prices. Tim