Posted by: The Elephant Owner in Economics,Free Markets on May 25th, 2008

While browsing for information about ethanol from swtich grass, I ran into a column published by Car and Driver about energy independence. (LINK) The author claims that we could be energy independent now if we were willing to pay an extra dollar per gallon for our fuel.

We could be self-sufficient now. All it would take would be a willingness to pay nearly a buck extra per gallon for ethanol made from corn. But paying more for each mile we drive — without some other benefit — would just make us poorer.

That date on the article is 1996. The average gallon of gas in 1996 was $2.90…it is now $3.90. (LINK) We also have mandated ethanol in our fuel.

The reality is that we are no closer to energy independence at $3.90 a gallon with ethanol then we were at $2.90 a gallon without it.

The reality is that food costs more. Partly because of increased global demand for food and party because inflation in the energy sectors makes its way into every other sector.

The reality is that bold predictions by enviornmentalist rarely come true.

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