The idea of putting ethanol in gasoline came about as a way to please the green lobby and corn farmers. But both of those concepts are outdated and unnecessary.
As for the corn farmers, it's time to wean them off the government dole. However, a subsidy once initiated is hard to withdraw.
And if fact, they are wanting more. Tim Carney tells us that the Ethanol lobby asks for a coronavirus bailout:
So it is with the coronavirus crisis. The companies that turn grain into an inferior fuel are already subsidized up to their necks by state and federal governments, and they are already eligible for the coronavirus relief available to all businesses. Yet they want more — they want their own special coronavirus bailout.
Yes, the ethanol industry is now lobbying the Trump administration for a bailout, Reuters is reporting. ...
This is what always happens.
High corn prices and low gasoline prices in 2009? There was a push for an ethanol bailout.
Financial crisis in 2008? Push for an ethanol bailout.
Oversupply in 2007? Lobby for an ethanol bailout.
Another glut in 2010? Lobby for an ethanol bailout.
These days, every industry needs help. But the ethanol industry has been getting it all along and doesn't deserve special treatment now.
Meanwhile, the oil producers are facing a hefty problem of their own. How about a bailout for them?
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2:09 PM 4/22/2020
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