Flying Headbutt said:
Ethanol has proven to not be the solution, except to a bunch of hicks in Iowa who hold presidential candidates and their early momentum hostage over it. But if Brazil can find something that IS the solution for them, surely we can too.
This is complicated. But to paraphrase something James Surowiecki did in the New Yorker a year or so ago, and which spurred me to read up on this, we have created such a corrupt ****ed up system that we can't even produce the cheapest form of ethanol. Fuel is a lot cheaper in Brazil, because instead of using corn-based Ethanol, they use sugar cane-based ethanol. Its much cheaper to produce and generates way more energy per unit than corn-based ethanol does. Many cars in Brazil run on Ethanol alone, at half the price of gas.
We can't do that here because our politicians have their hands in the corn and sugar industries' pockets. They keep the price of domestic sugar so high in the U.S. as a boon to the industry that we can't make it cost-effective to use for ethanol, the way Brazil does. Our government actually guarantees producers a fixed price for domestic sugar and they put such high quotas and tariffs on foreign sugar that we can't just import cheaper third-world sugar. It keeps sugar prices twice as high in the U.S. than it is in the rest of the world. It's had ridiculous consequences. The candy industry in the U.S. has been decimated, with thousands of jobs lost to foreign makers. And amazingly, it has made us less fuel efficient.
We can't even just simply import sugar-based ethanol to get around the high price of sugar they have foisted on us. Congress imposed a tariff of 54 cents a gallon on sugar-based ethanol to protect the corn producers from competition. I can't remember the exact numbers, but there was a study from Iowa or Iowa State that suggested that if we just got rid of the tariffs, prices would fall by 10 to 20 percent and we'd use hundreds of millions more gallons of ethanol.
This is one area, you actually can't criticize the Bush Administration (one of the few). They tried to eliminate the ethanol tariff last year, and Congress said "Hell no!" Too many Congressmen getting greased by too many lobbyists. And we all lose. Not that he is alone, but one thing to keep in mind when making your presidential considerations -- Barack Obama was one of the ringleaders among a group of Senators who campaigned to make sure the tariff stayed in place. He is getting greased but good for his efforts. The domestic sugar producers have gotten hugely rich because of Congress and with the boondoggle they get, they have a lot more money to spread it around to their benefactors. It insures that they keep getting this corrupt (and what should be illegal) treatment.
The whole thing is beyond absurd. We actually have a policy in which Congress is paying billions of dollars in subsidies (our tax dollars) to try to induce us to use more ethanol... And at the same exact time, it has enacted tariffs and quotas that guarantee we use less. And as backward-ass as that is, it also just leaves us more dependent than ever on unstable oil-producing countries that screw us every which way they can. With the ethanol tariffs, we actually end up imposing taxes on fuel from countries that are friendly toward us (Say Brazil). But we don't tax fuel from countries that hate our guts and are antagonistic toward us (say Venezuela).
It is America at its most ****ed up.