There are several ways to secure our energy supply. Not to mention the subsidies of biofuel production, one is to encourage import from our friendly trading partner such as Ethanol from Brazil. The other is establish a better relationship with the middleeast countries. Seems no one/at least not the administration mentioned.
Importing from Brazil is blocked by the interest group of our sugar industry. well...the interest group basically block almost all free trade proposal between the poor country and the US. There is no hope that our administration, which is monoplized by them, can do much. If the government wants to place a subsidy on domestic bio fuel production, why not use the money (in present value term) as a lump sum payment to this already rich farmers, in exchange for their give up for their lobbying. This one time payment will not distort the market. After the payment, free trade and import from the low cost bio fuel production countries. We are less dependent on oil.
Why do many middle east countries being hostile to the US? We learn trade is mutually beneifical. So, the conflict should not come from trade between two countries per se. It is more a political interest driven, which our administration current and in the past commited. The Iraq war is for oil or for liberation or for preventing the build up of weapon of mass destructions or simply a personal conflict between two presidents?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment