April 25, 2006
Bush IS to Blame
Larry Kudlow (and JohnGalt in a comment below) remind us that there is more than supply and demand going on here. The energy bill that Bush signed, with great fanfare, includes an Ethanol mandate that is causing shortages in some parts of the country and driving up prices everywhere. Cui bono? I'd say ADM but the "alternative fuels" crowd still believes.
The Bushies have no one to blame for this but themselves. It is a self-inflicted wound and the ridiculous ethanol mess deserves much of the blame.Why was this ethanol garbage signed into law last August? Why did we have to do this—particularly now? Why now? All it does is screw around with already tight international supply conditions from the global boom demand.
So, America, with all them-Willie-Nelson-subsidized-farmers, can't grow enough corn to make the Ethanol we need (don't laugh, this is serious!). No problem, we can import sugar-cane Ethanol from Brazil. No. Sadly, there is a $0.57 tariff on a gallon of Brazilian ethanol so it is cost prohibitive.
I'll defend the Oil execs, and I'll defend the President from demagogic attacks, but he is paying the political price of "compassionate conservatism, is he not?" This was a dangerous step into a more "mixed" economy, and the wages of that sin is 33% favorability...