Ethanol Subsidies - Are They Really the Answer?

While the United States government seems to have decided that ethanol is the answer to global warming and our increasing dependency on foreign oil, it might be time for someone with a degree in economics to take a hard look at how the ethanol subsidies are impacting the American consumer away from the gas pump.

As these subsidies increase, corn prices are rising and the trickle down effect is going to be felt not when we pull into the line at the gas station but rather when we roll our carts up to the cashier in the grocery store.

The rising cost of corn is impacting not only the price of beef and almost all dairy products, (corn is used to feed the cows) but a recent AP article also blamed the ethanol boom for rising beer prices! As more farmers are replacing other crops such as barley (used in beer), soybeans and wheat with corn, the products made with these ingredients are becoming more and more expensive.

Most economists are actually predicting a 20% increase in the cost of goods at the grocery store this year over last. Since our incomes are not increasing at a ratio that’s even close - how are we supposed to continue to feed our families?

It’s not bad enough that we’re paying almost $4.00 a gallon to get to work but an additional 20% increase in the cost of groceries will more than likely be enough to drive many low and middle class families straight into bankruptcy.

Is ethanol really the best and only option?

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