Obama supports higher prices for food and gasoline. Or at least that is what one would have to conclude from Obama’s support for ethanol.
According to the New York Times, Barack Obama is a big ethanol supporter.
When VeraSun Energy inaugurated a new ethanol processing plant last summer in Charles City, Iowa, some of that industry’s most prominent boosters showed up. Leaders of the National Corn Growers Association and the Renewable Fuels Association, for instance, came to help cut the ribbon — and so did Senator Barack Obama.
Then running far behind Senator Hillary Rodham Clinton in name recognition and in the polls, Mr. Obama was in the midst of a campaign swing through the state where he would eventually register his first caucus victory. And as befits a senator from Illinois, the country’s second largest corn-producing state, he delivered a ringing endorsement of ethanol as an alternative fuel.
Mr. Obama is running as a reformer who is seeking to reduce the influence of special interests. But like any other politician, he has powerful constituencies that help shape his views. And when it comes to domestic ethanol, almost all of which is made from corn, he also has advisers and prominent supporters with close ties to the industry at a time when energy policy is a point of sharp contrast between the parties and their presidential candidates.
Obama is not just a supporter of ethanol as an alternative fuel but it is part of Obama’s protectionism. Obama refuses to even consider using sugar based ethanol from Brazil defending the need for high import tarrifs on ethanol.
This is one issue where John McCain has taken a stand that does not appease the voters of Iowa and has opposed the ethanol program.
Mr. McCain advocates eliminating the multibillion-dollar annual government subsidies that domestic ethanol has long enjoyed. As a free trade advocate, he also opposes the 54-cent-a-gallon tariff that the United States slaps on imports of ethanol made from sugar cane, which packs more of an energy punch than corn-based ethanol and is cheaper to produce.
“We made a series of mistakes by not adopting a sustainable energy policy, one of which is the subsidies for corn ethanol, which I warned in Iowa were going to destroy the market” and contribute to inflation, Mr. McCain said this month in an interview with a Brazilian newspaper, O Estado de São Paulo. “Besides, it is wrong,” he added, to tax Brazilian-made sugar cane ethanol, “which is much more efficient than corn ethanol.”
The United States should be getting rid of ethanol all together or at least letting in Brazilian sugar based ethanol which is 4 times more efficient.
The price of ethanol has raised the cost of gasoline.
Ethanol also has raised the price of food. Farmers are growing corn for ethanol thus raising the prices of all types of food.