A new report states that the heavy subsidization of ethanol plays a big part in the increase of food prices. This study is by the environmental group Earth Policy Institute. When we have free marketeers and environmentalists in agreement, we might want to pay attention.
In related news, John Thune is looking to expand the definition of "biomass" to allow for greater subsidization of various other organic materials, in particular wood waste, used to produce energy.
In unrelated news, reader Dennis passes on this Human Events article by Newt Gingrich arguing as I have here that the so-called stimulus package will do little to promote economic growth. Instead it will promote consumption over savings while adding to inflationary pressures.
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