Essay of the Week: 1/13/08-1/19/08

The worst famines of the last 100 years were all caused by government policy. Think of Mao’s great leap forward or the horrible Ukrainian famines. So while it is tempting to dismiss Stuart Staniford’s “Fermenting the Food Supply” as being to alarmist, we should not forget that government’s have a track record of causing massive starvation in the name of the greater good.

The weakest part of Mr. Staniford’s argument is where he argues that Ethanol plants would still be profitable even without government subsidies. Especially given the fact that he does not seem to be taking into account the fact that government has been mandating that the refineries put an increasing amount of Ethanol into their gasoline blends.

But this weakness is overshadowed by the graphs he made showing how fast the Ethanol industry has grown and how much of our food supply is already being burned. Anyone who thinks that Ethanol is the wave of the future should look at those graphs and image what will happen if the growth in Ethanol production continues.

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