SUBSIDY SUBSIDIES

"Only the U.S. Department of Agriculture could dream up a policy like this."
-Representative John Flake (R-AZ)

As I've pointed out several times in the past, ethanol subsidies - corn or grass or any other kind - are problematic because they pay farmers to farm things other than food. The corn and food product ethanol subsidies are particularly troubling because they pay farmers to burn food rather than produce it for eating, which is causing food shortages worldwide, but paying farmers to grow anything other than the food they were causes the same result: less food being grown.

Well, it turns out that the farmers who grow corn for Ethanol have noticed the bitter fruit of their efforts: it's costing them more and more to grow the stuff. They can't make as much money as before. The solution? Beg the federal government for more money. Hey, begging for a bailout worked for the mortgage industry, why not farmers?

U.S. Agriculture Secretary Ed Schafer said the federal government is considering outlays of as much as $25 million to help ethanol plants, which have been hit by volatile commodity prices.

With the bank and wallstreet bailout pushing one TRILLION dollars (apparently the government can find more money if they choose to - or at least print it and pretend it's worth the same as before), a further bailout of $25 billion to auto makers, the farmers are just lining up with their hand out.

What happens to the future economy when the government starts printing huge stacks of money to make things seem okay to individuals? Ask the Germans, circa 1932.