This will also dramatically affect the price of meat, as a significant proportion of livestock in this country is corn-fed.
2007-02-23 13:22:38 · 7 answers · asked by Martin L 5 in Social Science ➔ Economics
KevinStud, good answer. I agree wholeheartedly that we need to look to the free market for the answer to this one. But we don't have to rely on the "experts" to forecast the price of corn. It's skyrocketing already.
Trolling, I would agree with that analysis if using ethanol did, in fact, allow us to ignore the middle east. But those dictators will still control a valuable commodity and wield the power to purchase more and more powerful weapons with their wealth. Can't ignore them with or without ethanol.
Newbie, good question. But what if farmers increase production to meet the demand and then the subsidies are deemed ineffective and discontinued? Or (perhaps worse), what if they are deemed ineffective and the government continues to subsidize the corn production anyway to avoid alienating the agri-business lobby?
2007-02-25 10:42:42 · update #1
The price of tortillas in Mexico (where many people are very, very poor) has already increased 4 fold! Ethanol from corn is an economic joke. Some researchers have concluded that it takes more energy to produce ethanol than the energy yielded from ethanol. If it was truly viable, government would not need to stick its nose (subsidies) in the business.
2007-02-23 15:10:36 · answer #1 · answered by Doctor J 7 · 0⤊ 1⤋
That's a complex issue, more so than people understand. It is certainly too complex for "commodities experts" to solve -- even in the VERY unlikely event they correctly forecast corn prices, they are not factoring in any opportunity costs to using or not using ethanol at all.
The best way to arrive at an efficient answer is to remove government subsidies for farming and ethanol and let the free market react -- the free market is much like a computer program solving an optimization problem.
Do that and see what solution the free market arrives at. Maybe corn is not economical and ethanol fails. Maybe innovations or other factors will make it work out. Who knows.
2007-02-23 15:35:36 · answer #2 · answered by KevinStud99 6 · 1⤊ 1⤋
provided that the government is going to deliver out motor vehicle restoration exams to conceal the wear accomplished via burning ethanol. That crap corrodes metallic 2-thrice swifter than universal gasoline. It corroded the gasoline injectors in my motor vehicle, had them replaced for $3 hundred.00 however the mechanic concept it replaced into in simple terms the age of the motor vehicle that did it needless to say even although they have been nice the twelve months in the previous i began out making use of ethanol. a trifling 3 years later I had the comparable issue and this time my mechanic knew what the reason replaced into...ethanol. He replaced them back for 3 hundred greenbacks and that i switched to top classification gasoline without ethanol...that replaced into 5 years in the past, no probs.
2016-12-17 17:30:30 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Farmers can feed their livestock something other than corn mixed with ground cow-brains. If a more expensive steak is the price we pay for ignoring nutshit Mideastern dictators.............then so be it.
2007-02-23 18:07:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Remember not that long ago when a really dry season wrecked the corn harvest?
We need something reliable.
2007-02-23 13:27:37 · answer #5 · answered by Caveman 3 · 0⤊ 0⤋
If price of corn doubles, won't supply response?
2007-02-23 23:22:20 · answer #6 · answered by newbie 1 · 0⤊ 1⤋
not worth it now.
Will become a very good idea if Iran nukes couple of oil terminals in the gulf.
2007-02-23 13:31:03 · answer #7 · answered by Anonymous · 0⤊ 0⤋