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    Name:Aaron
    Location:West Allis, Wisconsin, United States
    Current Mood:The current mood of sub2change at www.imood.com

    Thursday, October 27, 2005

    We Should Go Back to Using Corn Cobs as Toilet Paper

    We should go back to using corn cobs as toilet paper. That would shut the ethanol lobby up!

    I'm sure you've heard their commercials lately. They claim that if the entire state switched to ethanol blended gasoline, our per gallon prices will drop ten cents. ON WHAT PLANET???

    The advocates for reformulated gas used this line years ago! They said that the new formula would be cleaner and cheaper. Well, many studies (Hey liberals, some of them are government or EPA studies) have them caught with their pants down on the first point. On the second point, their pants are down and they're parading down the middle of Wisconsin Avenue singing "Tra-la-la! Aren't the trees greener today?"

    Why is the ethanol gas not cheaper? Supply and demand: no one (in relative terms, of course) makes the stuff. If no one makes the stuff, the supply is lower. Demand is the same, so prices go UP (the opposite of cheaper). Not only is the supply lower because the number of suppliers is decreased, your gasoline supply is dependent on the corn growers. A bad year for corn (used to make ethanol) is a bad year for gasoline.

    The assumption that the commercial (probably) makes is that ethanol prices will remain exactly the same as the demand for it increases, and that the supply of gasoline will not be affected (identical amounts of ethanol blend can be refined in the same time as "straight gas") . Or, they're just making the whole thing up. It's too bad we can't make fuel from horse hockey, there's plenty of it to go around!

    Link: An interesting primer on gas prices. Note the section on how California's home brew costs them more at the pump.

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