There is a real danger that Congress will remain oblivious to the economic and scientific realities of ethanol and take us down the wrong path by mandating a huge increase in ethanol production. Washington might have a love affair with ethanol for political reasons, but increasing ethanol production will lead to higher taxes, higher prices for both food and fuel, and damage to the environment, making us all worse off.
Congress needs to say no to the ethanol hustlers and end its political addiction to corn.
~From my commentary in today's Detroit News "Cornfed overexuberance: Ethanol push raises food prices, guzzles fuel, reduces water levels."
Bottom Line: Corn ethanol is all about politics, not about sound economics or sound science. Ethanol is a classic public choice example of rent seeking, special interest groups, and rational ignorance.