Do you think restaurants will close because of high food prices caused by ethanol?

Question

Our local Outback Steakhouse closed because they said high food prices in, cheese, anything dairy, beef, chicken. Our local paper said, this is just the start of resturants closing due to high food prices caused by ethanol. Dairy, cheese, beef, chicken are at all time high in prices. Cheese has gone up 40% in the last couple of weeks. People do not understand how many this will put out of work.

Mr. Taco--- They said they tried raising prices but the people would not pay it. These food prices are up 50% to 125%
People just will not pay it. They are predicting several restuarants to close. Business right now is tough enough without raising your goods by 75% on average.

Your mileage on ethanol drops 24% to 34%.

Ok a lesson on ethanol. According to several studies including Patzek out of Berkley University says it takes 1.29 units of energy to make 1 unit of ethanol.(Oil,Natural gas, coal). So when you burn 1 gallon of ethanol, you now have used 2.19 gallons of energy. Ethanol increases the cost of gasoline. www.cato.org and search for ethanol. John McCain said ethanol will do nothing to decrease the dependance on oil. NOTHING!!! I have the whole quote for you if you want it. At best it would decrease it by 1/2 of 1%. Colorado has more oil than all OPEC countries combined. All OPEC countries have 911 billion barrels, and Colorado has 1.8 trillion barrels.

http://ostseis.anl.gov/guide/oilshale/index.cfm

Shooter- A company called ADM (archer daniels midland) make 70% of all ethanol. The federal government subsides ethanol a $1.38 a gallon. (www.cato.org) Did anyone watch ABC 20/20 show on May 04, 2007? Ethanol is the #1 myth in america.

Daniel- We pay less taxes today then we did 8 years ago. Clinton passed the largest tax increase in US history, that is a fact. In fact Hillary wants another tax increase that will cost families over $4700.00, just go to my other questions and you will find more info.

Answer 1

Yikes! That stinks. I never thought about that but its a good point. If restaurants, what next? Really scary how this can have such a big effect, bigger than just filling up your tank.

Answer 2

What area are you in? Ive always read that ethanol causes lower mpg but the cost per gallon makes it equal to the current cost of gas. Also the cost of gas will continue to go up, adding a little competition in the form of ethanol will decrease demand on gas and lower prices. Also as demand increases for ethanol the price will lower for ethanol.

Answer 3

this is ridiculous as after the corn has been used to extract ethanol it can still be used for feed, so what is happening is our big conglomerates are making a scene so they can get richer from this ethanol producing plan,some times I think free enterprise especially when it is so organized by the likes of Cargil and other greedy corporations is not such a good idea, how ever the people could put a stop to this **** by organizing them selves and demanding a stop to such greed, and don't say it can't happen, the only reason it won't happen is because to many people are to scared to make a stand,

Answer 4

Perhaps, but this does not mean that nothing can be done to reduce the emissions or our dependence on middle east oil. Bush overdid it on the ethanol program. Small incremental changes in different industries are best for meeting our energy challenges; they'll produce smaller, less drastic price changes.

"Bush Administration Establishes Program to Reduce Foreign Oil Dependency, Greenhouse Gases"
http://www.energy.gov/news/4940.htm

Answer 5

Most restaurants will simply raise their prices. If the price of food is going up, then the price of restaurants will go up. Here is the thing: if Outback closed by you, did everyone else? Probably not. Then why? I doubt the high food prices were really the problem. Not that food prices are not a problem in general, mind you, but if a restaurant cannot compensate, then the problem is the restaurant. Food prices are high for everyone.

Answer 6

I have enough room for Milk goats. I have plenty room
for a garden and a pasture to raise a beef. I have a limited
fixed income. It still don't look good. In a few short years
Ill be to old to milk the goats or tend a garden. Good luck to
the rest of you.

Answer 7

That is not true, it's just scare tactics, sponsored by farmers who want to continue to get their subsidies.

Answer 8

If restaurants start closing in large numbers, it will be because the American people are so overtaxed that we can't afford it!