Al Gore’s ‘Mistake’
Now Mr. Gore admits what economists and ecologists have been saying for years: that ethanol is often counterproductive as a “green” energy source, and that its subsidized uptake has fueled price increases and Third World food shortages. Ever since guys like Al Gore, who don’t have to worry where their next bowl of carbs is coming from, convinced each other to dump ethanol down their Lexus tanks at a discount courtesy of the American public, corn has become more precious. Department of Agriculture research shows corn prices this year are 71% higher than in 2005, versus a 55% increase in crude oil. Subsidizing the “market” for ethanol cost U.S. taxpayers more than $7 billion in 2009 alone, and Reuters reports that this year 41% of American corn, or 15% of the global crop, will be converted to ethanol.
Mr. Gore’s “mistake” wasn’t an error. It was, by his own admission, a calculated decision that no longer benefits him. The problem is that by taking so long to correct himself, he has already done astronomical damage: Corn is scarcer for those who really need it. Investors who believed the hype now might lose money. Taxpayers have been bilked for billions. The farmers who saw their product subsidized and overvalued risk the fallout of a bubble burst.
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Al Gore’s ‘Mistake’
Now Mr. Gore admits what economists and ecologists have been saying for years: that ethanol is often counterproductive as a “green” energy source, and that its subsidized uptake has fueled price increases and Third World food shortages. Ever since guys like Al Gore, who don’t have to worry where their next bowl of carbs is coming from, convinced each other to dump ethanol down their Lexus tanks at a discount courtesy of the American public, corn has become more precious. Department of Agriculture research shows corn prices this year are 71% higher than in 2005, versus a 55% increase in crude oil. Subsidizing the “market” for ethanol cost U.S. taxpayers more than $7 billion in 2009 alone, and Reuters reports that this year 41% of American corn, or 15% of the global crop, will be converted to ethanol.
Mr. Gore’s “mistake” wasn’t an error. It was, by his own admission, a calculated decision that no longer benefits him. The problem is that by taking so long to correct himself, he has already done astronomical damage: Corn is scarcer for those who really need it. Investors who believed the hype now might lose money. Taxpayers have been bilked for billions. The farmers who saw their product subsidized and overvalued risk the fallout of a bubble burst.