The Cost of Food and Government Mandated Ethanol

The editors of the Washington Times write today on the upcoming surge in food prices thanks to Team Obama’s mandates on ethanol use to fuel our cars:

Efforts of lawmakers to buy votes in midwestern states are hitting taxpayers in the wallet. A report by the accounting firm PriceWaterhouseCoopers (PwC) last month calculated the full impact of the congressional directive pouring ethanol into the gas tanks of Americans. This crony capitalist corn scheme drives up prices not just at the pump but at the drive-through as well.

The analysis commissioned by the National Council of Chain Restaurants concluded the federal government’s Renewable Fuel Standard would increase the cost of eating out by $3.2 billion every year. Under this mandate adopted in 2005, an arbitrary and increasing amount of ethanol must be sold each year. It’s a policy guaranteeing a windfall for suppliers of the corn used to make this unnecessary fuel additive.

For 2015, these agribusiness giants will sell an extra 6 billion gallons of their product, not because Americans want it, but because Uncle Sam says so. To meet the increasing — and artificial — demand, farmers must shift production away from crops that put food on the table or feed livestock. This comes at a cost.

The green eyeshades figure that the reallocation of farming resources will drive up the cost of corn by 27 percent, pork 15 percent, potatoes 13 percent, beef 8 percent and eggs 11 percent. This means items on the supermarket shelves become less affordable. The cost of french fries, Big Macs and Egg McMuffins also goes up.

The rest here.

Most Popular

Politics & Policy

Students’ Anti-Gun Views

Are children innocents or are they leaders? Are teenagers fully autonomous decision-makers, or are they lumps of mental clay, still being molded by unfolding brain development? The Left seems to have a particularly hard time deciding these days. Take, for example, the high-school students from Parkland, ... Read More
PC Culture

Kill Chic

We live in a society in which gratuitous violence is the trademark of video games, movies, and popular music. Kill this, shoot that in repugnant detail becomes a race to the visual and spoken bottom. We have gone from Sam Peckinpah’s realistic portrayal of violent death to a gory ritual of metal ripping ... Read More
Elections

Romney Is a Misfit for America

Mitt’s back. The former governor of Massachusetts and occasional native son of Michigan has a new persona: Mr. Utah. He’s going to bring Utah conservatism to the whole Republican party and to the country at large. Wholesome, efficient, industrious, faithful. “Utah has a lot to teach the politicians in ... Read More
Law & the Courts

What the Second Amendment Means Today

The horrifying school massacre in Parkland, Fla., has prompted another national debate about guns. Unfortunately, it seems that these conversations are never terribly constructive — they are too often dominated by screeching extremists on both sides of the aisle and armchair pundits who offer sweeping opinions ... Read More
U.S.

Fire the FBI Chief

American government is supposed to look and sound like George Washington. What it actually looks and sounds like is Henry Hill from Goodfellas: bad suit, hand out, intoning the eternal mantra: “F*** you, pay me.” American government mostly works by interposition, standing between us, the free people at ... Read More
Film & TV

Black Panther’s Circle of Hype

The Marvel Cinematic Universe (MCU) first infantilizes its audience, then banalizes it, and, finally, controls it through marketing. This commercial strategy, geared toward adolescents of all ages, resembles the Democratic party’s political manipulation of black Americans, targeting that audience through its ... Read More