The Greens Reduce Alcohol Consumption, Too?
My friend Pete tipped me off to this article, which explains that the growing popularity of biofuel production is driving up beer prices. Unfortunately, this "unintended consequence" will probably just make it more popular.
Comments (4)
There's nothing efficient or market-driven about the president saying there will be massive subsidies (above the outrageous amount currently) to biofuel makers. This is a clear case of perverting the market with violence. Beer drinkers, and of course the entire industry which supports them, will help pay the biofuel manufactures.
Published: February 26, 2007 12:42 PM
Well if subsidies can lower the price of E85 to less than Regular 87, then you will have artificially created a substitute for 87.
Imagine if the Federal government gave free steel to US auto makers which allowed them to reduce their prices by that subsidy amount and still make the same profits and more, while at the same time stimulating demand. That is a clear case of market perversion, just as it is in the corn subsidy case.
Subsidies allow for products that wouldn't be on the market to exist at the expense of dollars that would have been spent more efficiently.
Published: February 27, 2007 4:33 PM
Sometimes unintended consequences are good. This might be the ticket to sobering up the greens.
Published: February 27, 2007 8:17 PM
Sometimes unintended consequences are good. This might be the ticket to sobering up the greens.
Well, to do that you'd need to figure out a way to make fuel out of marijuana and 'shrooms.
Published: February 27, 2007 11:40 PM