Townhall.com, Where Your Opinion Counts
Talk Radio:   Bill Bennett   Mike Gallagher   Dennis Prager   Michael Medved   Hugh Hewitt   
BREAKING NEWS  LeftArrow - Townhall.com : Conservative, Political, Republican   RightArrow - Townhall.com : Conservative, Political, Republican  
Columns, funnies & more in your inbox!
  • Check the boxes and send us your email address to receveive your free newsletter
  • Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
  • Townhall.com’s weekly inside scoop on what’s happening behind the scenes in the world of politics. When news breaks, we report.
  • Signup to receive the latest daily Townhall cartoons
Tuesday, April 15, 2008
Dana Joel Gattuso :: Townhall.com Columnist
Congress Picks a Loser
by Dana Joel Gattuso
Vote on It:
Average Vote:
[+] Text [-]
 
Poll
Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


Congress doesn’t trust consumers to make the right decision when it comes to selecting the right source of energy. Congress knows better. That’s why legislation out of Capitol Hill is all about weaning us off oil and putting us directly on a “renewable energy” diet.

Witness the energy tax bill the House passed in February that slaps $18 billion in taxes on oil production to fund wind, solar, biofuels, and other “alternative” sources. Witness the new energy law passed in December mandating that Americans increase the use of ethanol and other biofuels at the pump to 36 billion gallons by 2022, up from 7 billion gallons required now. And witness the new farm bill that gives corn growers $10.5 billion in subsidies over the next five years, no matter how fast the price of corn rises—which, incidentally, has gone from $3.50 a bushel to a record $5.50 over the past three months.

The problem is that Congress, unlike consumers who make decisions based on price and availability rather than political pressures from entrenched farm interest groups, gets it egregiously – and damagingly – wrong. Even with oil topping $109 a barrel, it is still relatively abundant. As the U.S. Geological Survey reports, there are 3 trillion billion barrels of oil reserves still available globally. For perspective, since the first automobile rolled off the assembly line, we’ve consumed only one trillion barrels.

Conversely, ethanol and other biofuels are extremely limited resources requiring enormous amounts of water, energy, and land otherwise used for growing food. The new energy law’s requirement that Americans use 15 billion gallons of corn for fuel by 2015 – that doesn’t include the other 21 billion gallons to come from non-food sources like switchgrass and corn husks – will consume an astounding 30 million acres of cropland. That means unless the mandates are repealed, more than a third of our corn crops will be diverted from food to fuel in just seven years.

U.S. policies forcing biofuel usage already are creating food shortages in third world countries, elevating food prices to historic levels. The New York Times, a longtime supporter of biofuels, now reports, “The world’s food situation is bleak, and shortsighted policies in the United States and other wealthy countries – which are diverting crops to environmentally dubious biofuels – bear much of the blame.”

This month, the UN’s World Food Programme and U.S.’s Food for Peace, the world’s largest food aid organizations, report gaping budget shortfalls resulting from soaring food prices. Declaring we are on the cusp of a food shortage crisis, the groups are urging the U.S. and other responsible nations to provide more aid to fend off world starvation in poor countries. Meanwhile, as the director of the Overseas Development Institute, a London think tank on humanitarian issues, comments, “U.S. and British farmers are laughing all the way to the bank.”

Here at home, market prices for food are surging too, adding to growing concerns that “agflation” will disproportionately hurt low-income families. The U.S. Department of Agriculture predicts “record current year prices for wheat, corn, and soybeans,” a fallout from “continued expansion in biofuels production.” Overall, consumer food prices have far outstripped inflation. Eggs are up 35 percent, dairy products 13 percent, fruits and vegetables 6 percent, cereals 5.5 percent.

Meat processors that rely on corn and grains for feedstock are also hurting. This month, the biggest U.S. poultry producer, Pilgrim’s Pride, announced it was closing a processing complex and almost half of its distribution plants in response to “the crisis facing the U.S. chicken industry from soaring feed-ingredient costs resulting from corn-based ethanol production.”

For what? To reduce greenhouse gas emissions? Bad choice. Ethanol and other biofuels contribute far more greenhouse gas emissions than regular gasoline, worsening rather than alleviating any possible threat of climate change.

Two independent studies in the journal Science report that the clearing of forests, grasslands, and other ecosystems throughout the world to grow corn, soybean, and other food-for-fuels will double greenhouse emissions over the next 30 years. Because plants and soil hold enormous quantities of carbon, destroying existing plants and tilling the soil releases the stored carbon.

Until now, the effect of land conversions was a mere footnote in the calculation. But “when you take this into account,” explains one of the study’s lead researchers Timothy Searchinger of Princeton University, “most of the biofuel that people are using or planning to use would probably increase greenhouse gases substantially.” Furthermore, he adds: “It is major. The comparison with fossil fuels is going to be adverse for virtually all biofuels on cropland.”

The second study by scientists from the University of Minnesota and The Nature Conservancy estimate that in the United States, converting the Central grasslands into corn ethanol emits so much carbon dioxide, it would take almost a century—93 years—to offset the damage.

Even switchgrass, touted as the future of biofuels because it is abundant, easy to grow, and doesn’t compete as a food source, would release stored carbon and increase greenhouse emissions an estimated 50 percent.

If not to reduce carbon emissions, then for what? To reduce dependency on foreign oil? Wrong choice again. The punitive tax bill now before the Senate taxes the nation’s largest oil companies while letting foreign producers off scott-free. It doesn’t take an energy expert to know punishing U.S. oil production will discourage investment in domestic supplies and increase our dependence on foreign oil.

In short, Washington’s distorted policies forcing biofuel usage on Americans are hurting consumers by driving up food and gas prices to historic levels. Fuel for thought: unless we reverse course, Congress’ bad choices could lead to world starvation, all the while increasing our dependence on foreign oil and furthering carbon emissions.

Share:
Vote on It:
Average Vote:
 
About The Author

Dana Joel Gattuso is at the National Center for Public Policy Research as a Senior Fellow.

Be the first to read Dana Gattuso's column. Sign up today and receive Townhall.com delivered each morning to your inbox.

Who need alternatives?

Energy
Biofuels is about one thing, politics--in short welfare for farmers in the corn belt like Iowa (which is just a tad important politically) and ethanol is actually many times more harmful for the planet than oil (if you believe, which I don't, that CO2 is harmful to the planet). You plow under acres and acres of trees (which asorb carbon and makes the environment cooler by producing shade and takes in storm runoff), till the land (which causes erosion), and pump in loads of chemicals--fertlizer, herbicides, pesticides, etc. which then run off causing water pollution and since it can't be piped in like gas and oil, it has to be trucked in causing more CO2 to be used in the form of gas used for the tanker trucks.

Oh and my greatests beef with the energy law is the imperial federal government deciding what light bulbs I can buy. Many on the left claim that Bush is stupid, I am starting to come to that conclusion as well. Hasn't heard heard of the veto which he seems to find only with vetoing things related to stem cell research.


Thanks Bob Dole ...
... for pricing food out of the reach of the poor so you could repay your buddies at ADM for the use of their jet. You, and those who voted with you to subsidize ethanol, have wrecked the world's food supply with your subsidy for a fuel that is less efficient that the pure gasoline we used to burn.

Any thinking person will realize that Congress soaked the voters three times with their ethanol vote - 1) The cost of the subsidy paid with our taxes, 2) The cost of higher food prices, and 3) The cost of the tariff on cheaper Brazilian ethanol.

Perhaps your wife (R-NC) can correct some of the damage by repealing your damaging subsidy

You posters rock...
All three provided intelligent supplements to this article. Thanks.

What about oil shale?
The east slope of the Rockies has somewhere between 1 - 3 TRILLION barrels of proven reserves, which are economically viable for extraction and refinement. Canada's Athabasca oil sands are already being developed and utilized.

What about building more refineries? It's been decades since any new ones have been built in this country, and adds to the cost at the pump for fuel, in addition to the seasonal mixes and additives mandated by the idiots in the legislatures and Congress.

There are plenty of options we haven't even begun to explore because of the politics of the issue, which has always been the monkey on its back.

akagi
Has my vote on this (although all the posts are spot on). The only people this light bulb stupidity helps is GE and Phillips. The cost of the florescents is three or more times that of an incandescent.

Ethanol is a bigger sham than global warming.

Follow On!
Great essay Dana.

Good comment elong.

But isn't the left a sham itself?

red states
Yes, ethanol is a big bowser. But who's pushing it, the big city liberals or the rural conservatives?

Akagi - Again, you're a lucky guy if CFLs rate among your biggest worries. But when did "the imperial federal government decide what light bulbs" you can buy? Do you also resent UBC insulation requirements? Like the column, your post seems to decry collective thought and decisions.

Cam
In this most recent energy bill, incandescent bulbs are going to be phased out in favor of more expensive and toxic florescent bulbs. They essentially outlawed incandescent bulbs. Ed Markey tried to justify it by comparing it to typewriters becoming obsolete. I don't remember a law, however, outlawing typewriters. The free market worked that one out.

To your other point. There is plenty of blame to go around here. Ethanol is a bipartisan sham! McCain at least had the guts to come out against subsidies for ethanol IN IOWA!

Yes I do Cam
"Do you also resent UBC insulation requirements?" And CAFE standards too. If someone wants to drive something that gets 10 gallons to the mile, great, if he or she can afford to gas it up. Let the market decide.

I decry collective thought and decisions. I decry fools like Markey, can we trade New England for a player to be named later? Like Alberta? If Vermont wants to leave the Union, please let them and hope that take the rest with them.

I don't remember the plebiscite on light bulbs, do you?

Oh and when Al Qaeda tried to hit the US Capitol, they were so lucky they didn't, because the US Congress is a much bigger threat to liberty in the US than they ever were.


Dem socialist energy programs
Good article. Still, the real problem is that the Congress is filled with too many European socialist pacifists who think energy answers are anti-American. It is just the opposite. Ethanol is a silly answer. It is the alliance between the whackoe enviros, the Media and the radical leftist Dems to stop all oil drilling, keep nuclear plants from being built, and not using our domestic coal, oil, natural gas wealth. If people would only rally to demand that these Dem socialists would give the public what it needs not what some socialist planner thinks, we might have some change. Oh, elect more Pubs even if you have to hold your nose. Just make sure that no more liberal Dems get elected in all those open House seats.

Hey Greenies! Cat got your tongue?!
The facts about rushing to ethanol as fuel have been known for a long time. Using corn or other crops (will sugarcane or beets be grown for ethanol?) competes with food, drives up the price. The poor here & abroad are hardest hit. So, where are all the hunger advocates? Where's Bono, the expert on int'l banking who's always so quick to tell us we must give our $$$ to bail out the World Bank's loans to Africa? Where is Sally Struthers?

Ehtanol is less efficient as a fuel under most conditions. It has a shorter tank life, as it absorbs water from air & degrades the fuel. More expensive fittings & fuel system components are required.

Then there's the tank truck aspect. The net emissions of harmless, naturally occurring CO2 are greatly increased thru this fact alone. That alone should disqualify ethanol from serious consideration. Where's Al Gore? Where are these activists threatening to sue to get abundant polar bears listed as 'endangered?' Where are the objections from the IPCC, the NAS, & other scientists who buy into the doctrine?

Archer Daniels Midland gets a vast windfall out of this. Why are the oil & coal co's & their profits so evil, but ADM is so good? Where are all these anti-corporate types that constantly bash "big oil? "

If they were serious about this stuff, they'd be consistent, & loudly condemn the ethanol scam. The fact that the activists & their compliant pet pols utterly disregard all these facts tells me THEY don't really believe in their own anthrogenic CO2 induced climate change dogma. This all about taxing, restricting, & impoverishing us, & ultimately rationalizing a world totalitarian state, NOT preventing "climate change."

What we get with Ethanol
"President George W. Bush on Monday ordered the release of $200 million in U.S. emergency food aid to help alleviate food shortages in developing countries in Africa and elsewhere, the White House said."

This from;
http://news.yahoo.com/s/nm/20080414/pl_nm/usa_food_dc

This country starts with the ethanol craze [congressional mandate {B. S.}] causes a rise in food prices all over the world, then we have to release this money. Give me a break.

Gonna slash and burn
I've decided to take some rainforest land I own in Costa Rica and do a little deforestation. Hey, the land's nonproductive now, might as well grow something on it that can be turned into ethanol. What a scam it is, though!

Amazing
how we always manage to elect politicians with i.q.s in the single digits, always stuck on stupid except when it comes to their own personal portfolios. And the Great Lord of
Stupid, algore preaches his sky is falling gospel to the great unwashed causing them to run around in chicken little circles while he and his
cronies are invested in the same green companies that are profiting from that falling sky. If anyone thinks our electeds aren't profiting along with him, there is that bridge in Brookly, I hear it hasn't sold yet.
We support a ministry in Haiti devoted to educating the poorest of the poor children and
they are having a hard time. Now they have to contend with these riots.

DDT is gone
But what about the murcury content in those energy saving bulbs? How many will be harmed, How many deformed and still births will be caused by the exposure? Don't try to tell me the parts per million are too low. Over a long period of occasionally breaking one it builds up. Could be your grandchildren. If there was no danger, then why are they saying how to clean them up and to NOT dispose of them in regular trash?

Isn't that the whole plan
of the green movement? Drive up costs, force less use and make a whole lot of money at the same time? That money is needed to keep more people on the gov't dole. As for mass starvation, the greenies get to fulfill a second goal. They believe the world is overpopulated and a few billion deaths would be good for it.

Big oil conspiracy theories
I believe the left fell for conspiracy theories about big oil. Somehow big oil was keeping these better energy sources from getting to the market. And new inventions of super fuel efficient cars were being hidden and destroyed. This is what we were told by our leftist friends. They honestly believed these things. I suppose George W. was behind the whole thing. So now are we stuck with foolishness for legislation.

As the above
sagagacious posters realize, all the proposed energy solutions will just make things worse, with action towards real solutions being minimal and pursued only by private capital at great risk. Risky because if they succeed in establishing oli supplies at say 75 dollars/barrel, they could be put out of business over night by dropping the price to 70 dollars by OPEC. But back to govt making things worse, which they are and no end in sight. But when they get bad enouogh, Joe Sixpack will adjust his life to match the new reality. SUV's will be replaced by Tatas and bikes if things get bad enough. On the other hand, maybe he will decide to vote rationally, instead of Politically correctly and we will return to sensible policies. You know, the ones that made our economy the world standard.

$6 worth of corn would feed you
for about 6 weeks. Yet people complain it will cause people in the US to starve.

Problem is, no one wants to eat corn.

They want it processed into corn chips and other processed food. Anyone ever stop to think that it is all those processing, marketing, and transportation costs that drive up the price of food moreso than the raw cost of corn?

People just don't know how to think any more.


Born to Farm
Maybe you should tell these people that all that hybrid corn has little nutrional value. It is all starch to be processed into ethanol and others sugars. It is fed to cattle which it actually kills, then it is fed to us.

ROAD TO EXTINCTION?

.....Humans have survived for hundreds of thousands of millenia because of our intelligence ...now it appears we have produced a populace so devoid of intelligence that we could be in danger of becoming extinct ...

.....who bought into the Global Warming nonsense? ...Who bought into the alternate energy scams? ...who keeps us from recovering our own vast reserves of fossil fuels? ...who votes for these politicians who create and pass these destructive and suicidal Energy Bills? ...

.....Why it is us ...Vox Populi .....COLOSSUS

Baseball Doc
Speak for yourself paleface. I may have made a mistake with Georgie but I didn't vote for the ones who come up with all these fool ideas. I personally believe they go around with lead foil on their heads to stop the alien radio waves. If O.B. or HRC gets in hold on tight to your wallet as it's going to get a lot thinner even if you are retired. God help you and I if we believe in personal freedoms too.

Back up your statistics
While not disagreeing with the overall intent of the article, the following statement provides no value to your argument: "Overall, consumer food prices have far outstripped inflation." Over what time period? What is the underlying reason - higher food prices or higher energy prices? Take almost any year from 1960 1980 and you will find that the inflation adjusted price of corn/wheat/soybeans is higher than what it is today. The US has been spoiled by cheap food for many decades. Now, our failed energy policy is partially to blame for higher food prices. Here is an easy three step plan for energy independence:
1. Drill on US soil and coastlines for oil
2. Convert electrical infrastructure to 80% nuclear (cheap and clean)
3. Liquid Coal: Use our vast coal deposits to create synthetic fuel.

Farmtogeek
I agree that nuclear should be cheap but when they put Perry Nuclear on line our bills were supposed to drop but instead went up. Then we find out that a large percent of their power is going out of state. As far as being clean where do you put the waste? Every state has said not in my backyard. They don,t even want it transported through their states and don,t even talk about moving it by air. One crash and you have a REAL problem. Air polution won't even come into the picture.

Dependent on water-reliant energy?
First let's become water reliant in our energy, then let's discover together that we are running out of water, that our aquifers are shrinking and deep wells are being drilled deeper to supply food to the world. For icing on this apocolypse cake, let's add, practically overnight, 20 to 40 million large family Catholics to the rolls of American citizenry and watch our poplulation balloon to 450 million by 2050. There won't be enough energy or food to keep our Arab landlords happy.

Nick
Where in hades did you get the idea that Catholics are the only ones having big families? That's almost laughable. Been in some of the big cities lately? A lot of hispanics and blacks are having big families and so are some of the southern poor whites. I'm very sure that not all of them are Catholics. Lets not cut on peoples preference of religeon. I'm Baptist and I don't say yours is wrong and I don't say the catholics are wrong as that's their own preference and beliefs. I suppose you believe that all Catholics are wrong because of what some of the preists did?

eastlake joe
If France can be 80% nuclear powered - I think the US can too. There is a lot of unused energy in nuclear waste, and one thing France does is refine the waste into a nuclear product that can be used again. The greens and the NIMBY's have stifled true, viable answers to waste storage and transportation - and now they complain about using corn to make ethanol. Now - I'm all for conservation, reducing energy consumption, etc. However, our energy policy is being held hostage by environmentalists and trial lawyers.

Farmtogeek
Inflation as in today (based upon price anomalies from the past 12 months). Yesterday's CBO reported that from Feb to Mar 2008, food prices increased 1.2%. That adjusts to about an annual 13%. For energy it was 3.1% or 37% annually. This is largest one month increase in commodities in 27 years.

However, much of the inflation can also be attributed to a very weak dollar.

The ethanol craze is also causing farmers worldwide to cease growing barely, oats, rice, soybeans, hops, rye, and flax. All of these commodities have gone up at least 15% annually; in many cases we are seeing shortages (especially in beans and rice).

The bottom line: there is not enough biomass in the world to produce kind of ethanol that Bush wants us to, and do we want to put our food supply at risk in order to make a few Green Yuppies feel good about themselves?

Who's picking losers
Congress didn't pick the losers, it was the voters.........

JPK
I agree with your analysis. My concern over the inflation comment in the article is that I think it is appropriate to have a historical view in addition to something very recent. As a farm boy who left for the tech industry (two brothers still farm), I remember that in the 70's corn was $2, in the 80's corn was $2, in the 90's corn was $2, in the early part of this decade, corn was $2. Today, corn is pushing $6, which is now closer to an inflation adjusted price. IMO, there are three main reasons for the large spike in commodities prices over the past 24 months: 1) Global demand for food - countries are becoming more prosperous and demanding more meat. 2) Ethanol. 3) Hedge fund managers messing with the commodities market. I think it's time to remove the ethanol subsidies to see if it can live on it's own. Let the market determine what is viable. If that happens, I think you'll see corn pull back to $4-$5. Until then - along with the current push for more ethanol - commodities will continue to rise. My consolation is that some of that money is going to my brothers as opposed to some terrorist in Iran.

Farmtogeek
tell me more about these "safe" ways to transport nuclear as my wife is a transportation specialist. I'd like to hear about them. Maybe you are one of these who believe in storing it on the moon? don't laugh, there is a small group that has suggested it.

EASTLAKE JOE

.....You and I are OK ...it's the rest of the Country that's screwed up ...

.....I didn't vote for those clowns either but enough of the voters did to put enough of those clowns in positions of power to pass laws that take away our freedoms and sell our Country down the river ...

.....I am reminded of that old joke about the prize fighter who is getting the tar beat out him ...as he sits in his corner between rounds his handler says to him, "You're doing great, he hasn't laid a glove on you".

.....The fighter replys, "Then you better watch that referee because somebody out there is kicking the sh!t out of me" .....COLOSSUS

Baseballdoc
AMEN BROTHER!!!!!

Hey,Bush signed it
I'm not looking forward automobiles being junk within 100,000 miles again once we all have to use ethanol.

Where is the quality?
Nothing wrong with the sentiments, but doesn't Townhall have any standards for the literary quality of what it posts? In company with the efforts of such talented folks as Thomas Sowell, Jonah Goldberg and Michael Medved, this banal restating of the obvious written in the most pedestrian style is embarassing by contrast, to say the least. It sounds like it was written by a communications major!

Tory
If it's the truth, what's it hurt? Perhaps the intellect of the columnist and those posting here isn't high enough for you. Gee, I'm sorry.

Eastlake
Most of the Hispanics are Catholic and that is who my comments were directed at, ie. (40 million virtually overnight), i.e., amnesty.
Sign Up to Post Your CommentsSign Up to Post Your Comments
If you are already registered, click here to login. Otherwise, please take a few seconds to register with Townhall.com. Once you sign up, you’ll be able to post your comments immediately, use the action center, get podcasts, and more!
Note: Fields marked with a red asterisk (*) are required.
Salutation:
First Name:
*
Last Name:
*
Email:
*
Nickname:
*
Note: Nick name will be shown when you post comments.
Address 1:
*
Address 2:
City:
*
State:
*
Zip:
*
Phone:
      
Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
(Bi-Weekly) We highlight the best opportunities from our partners for surveys, action items and more.