ETHANOL
DALAP
Tricia Canty
Tamica Hunter
AJ Dicembre
Michael Corp
Loren Lobban
There exist many unanswered and pressing problems to be solved by the next president of the United States. The most salient of these problems are: Immigration, the economy, the war in ‘Iraq’, global warming, the devalued dollar and financial markets, and the threat to national security evidenced by our addiction to foreign oil. One of the many commands and instructions of the energy policy act of 2005 called for oil companies to increase the amount of ethanol mixed with gasoline. President Bush stated, “America is addicted to oil which is sometimes imported form unstable parts of the world” Townhall.com, Walter Williams, Big Corn and Ethanol Hoax, 5/13/2008.
This presidential assertion prompted many large organizations to attempt to convert corn into ethanol. To ensure that this effort would be successful, congress was forced to enact and pass subsidies to corn farmers in the United States.
Notwithstanding, Congress failed to look at the ‘opportunity cost’ of ethanol production. Congress failed to complete a thorough cost analysis of the problems that existed and chose corn to produce ethanol, which has impacted the world with unintended consequences of higher food cost and higher grain prices. Congress failed to consider ethanol from Brazil, where they use sugar cane as their source of energy. Brazilian ethanol is more energy efficient, cleaner and cheaper to produce. However, congress mandated a 54-cent a gallon tariff on ethanol from Brazil. Economists ch ...