Ethanol – The Myth

The Many Myths of Ethanol | John Stossel | Wednesday, May 23, 2007

“Ramp up the availability of ethanol,” says Hillary Clinton.

“Ethanol makes a lot of sense,” says John McCain.

“The economics of ethanol make more and more sense,” says Mitt Romney.

“We’ve got to get serious about ethanol,” says Rudolph Giuliani.

And the media love ethanol. “60 Minutes” called it “the solution.”

When everyone in politics jumps on a bandwagon like ethanol, I start to wonder if there’s something wrong with it. And there is. Except for that fact that ethanol comes from corn, nothing you’re told about it is true. As the Cato Institute’s energy expert Jerry Taylor said on a recent “Myths” edition of “20/20,” the case for ethanol is based on a baker’s dozen myths.

A simple question first. If ethanol’s so good, why does it need government subsidies? Shouldn’t producers be eager to make it, knowing that thrilled consumers will reward them with profits?

But consumers won’t reward them, because without subsidies, ethanol would cost much more than gasoline.

“Virtually all studies show that the greenhouse gases associated with ethanol are about the same as those associated with conventional gasoline once we examine the entire life cycle of the two fuels,” Taylor says.

Would it kill us to have some Politicians be informed and rational? Unbelievable.

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