Ethanol – How Socialism Makes Smart People Do Stupid Things –

on May 31st 2019 the US Environmental Protection Agency EPA announced action that would remove the key regulatory barrier to using e15 that's gasoline blended with up to 15% alcohol during the summer driving months EPA Administrator Andrew Wheeler said quote following president Trump's leadership today's action is a step forward in expanding the market for biofuels and managing this important program responsibly unquote now does anyone listening out there have any doubts about the integrity of mr. wheeler statement I'm Matt Tyler and here's my opinion well as you may have guessed I have some doubts and I'm going to address them by answering three basic questions one why is using an ethanol blend of gasoline always a stupid idea – why is President Trump's support of e15 for the summer definitely a smart idea and three how does socialism in America always convince smart people to say and do stupid things let's start with socialism and mr. wheeler who works for the EPA and essentially answers to the president in my school of the sensible citizen this is called intro to the art of bureaucracy 101 here's how this example goes so let's imagine that his boss told him that the earth was flat and that sailing vessels due west on the Pacific Ocean is dangerous because one might perish by sailing off the edge of the earth and that mr. wheelers position now includes the responsibility of informing the public especially those with sailboats about the dangers of sailing westbound on the Pacific does mr. wheeler ever really have any good reason to doubt his boss or to hesitate in doing what he is told of course not why would mr. wheeler question his boss and jeopardize his position his salary his benefits his car loans his mortgage his children's college education and even possibly his relationship with his wife why would he do such a thing because he doesn't believe the earth is flat what does he care he doesn't even like boats he see sick while taking a bath and even if he did question the malarkey of this Flat Earth theory he knows the EPA would simply hire someone else who would inform the public of the dangers of sailing west on the Pacific the public would be told the say malarkey only mr. wheeler would now be looking for a new job so that's how it works in every bureaucracy and that's just one way that socialism in America convinces smart people to say and do stupid things think about it next let's reveal why the support of e15 is a smart idea for president Trump this one is called intro to the art of the deal 101 here's how the second example goes so let's imagine that the president is a person of integrity who really cares about his country and the capitalist who understands how messed up things have become with all this socialism in America and he really wants to continue his work killing socialism by draining the swamp lowering taxes securing the border eliminating stupid regulations creating private sector jobs supercharging the economy and holding politicians and bureaucrats accountable well he needs to get reelected right last year we exported a record-breaking 1.7 billion gallons of ethanol that's a big number and separately the United States is now the number-one producer of oil and natural gas anywhere on the planet were the biggest in the world in energy production and now ethanol is playing a bigger and bigger part so congratulations here with us today are several Americans at the center of our nation's energy revolution who want to share why ethanol is so important to them Kevin Ross is a sixth generation farmer from the nearby town of Minden Kevin please come up and share your story Kevin [Applause] thank you welcome mr. president to the great state of Iowa and when he is standing on a podium in Iowa where too many federally subsidized farmers are paid to ignore the law of supply and demand driving down their corn price by producing too much because there are too many farmers farming and they all cry about how the tariffs trade war with Chinese Communists is driving their price down even further well what do you think he'll do Iowa is the largest grower of corn and producer of ethanol with 37 percent of US corn production consumed by ethanol plants many of these subsidized corn farmers and biofuel producers with two Republican US senators and a Republican governor really want to hear about two things more money to subsidize farmers directly and more programs that artificially create more demand for their ethanol and the president already said during the first week of June that the federal government will spend 16 billion in a second round of trade aid to help offset related losses to farmers on top of 12 billion in trade aid provided last year the Des Moines Register then quoted Republican US Senator Chuck Grassley saying quote it will be a boon to the rural economy in Iowa especially considering continued trade uncertainty banning this higher blend of ethanol for part of the year never made any sense unquote that's for sure especially if you represent subsidized producers of corn and ethanol it's a smart move to make iowa happy and secure those votes well I may not like that socialism in America has created this ridiculous situation at the cost of the American taxpayer it's still the right way to play these politics and the art of the deal without a free market and the president should know because he wrote the book finally let's examine why using an ethanol blend of gasoline is always a stupid idea this one is called the law of diminishing returns which is used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested way back in 2009 a Cornell professor in the College of Agriculture and life sciences David Pimentel said abusing our precious crop lands to grow corn for an energy inefficient process that yields low-grade automobile fuel amounts to unsustainable subsidized food burning Pimentel chaired a US Department of Energy panel that investigated the energetics economics and environmental aspects of ethanol production and conducted a detailed analysis of the corn to car fuel process the following are among his findings in 2009 now there increases in government subsidies to corn based ethanol fuel nor hikes in the price of petroleum can ever overcome the fundamental input yield problem it takes more energy to make ethanol from grain than the combustion of ethanol produces an acre of US corn yields about 7,000 110 pounds of corn for processing into 328 gallons of ethanol but planting growing and harvesting that much corn requires about a hundred and forty gallons of fossil fuels and costs three hundred and forty-seven dollars per acre thus even before corn is converted to ethanol the feedstock to produce each gallon cost one dollar and five cents the energy economics gets worse at the processing plants where the grain is crushed and fermented as many as three distillation steps are needed to separate the eight percent ethanol from the 92 percent water additional treatment and energy are required to produce the ninety-nine point eight percent pure ethanol for mixing with gasoline adding up the energy costs of corn production and its conversion to ethanol a hundred and thirty one thousand BTU needed to make one gallon of ethanol however the same gallon will return only 77,000 BTU to put it another way about 70 percent more energy is required to produce ethanol then you can get back from ethanol every time you make a gallon of ethanol there is a net energy loss of 54,000 BTU this violates the laws of diminishing returns and common sense and should help you understand that it's always better to just burn straight gasoline ethanol from corn costs about a dollar seventy four per gallon to produce compared with about ninety five cents to produce a gallon of gasoline that helps explain why fossil fuels not ethanol are used to produce ethanol the growers and processors can't afford to burn ethanol to make ethanol us drivers couldn't afford it either if it weren't for government subsidies to artificially lower the price thank your tax dollars and socialism in America most economic analysis of corn to ethanol production overlooked the costs of environmental damages which Pimentel says should add another twenty three cents a gallon corn production in the u.s. erodes soil about twelve times faster than the soil can be reformed and irrigating corn mines groundwater twenty five percent faster than the natural recharge rate of groundwater the environmental system in which corn is being produced is being rapidly degraded corn should not be considered a renewable resource for ethanol energy production especially when human food is being converted into ethanol the one billion dollar plus a year in current federal and state subsidies mainly to large corporations for ethanol production are not the only costs to consumers the Cornell scientist observes subsidized corn results in higher prices for meat milk and eggs because about 70% of corn grain is fed to livestock and poultry in the United States increasing ethanol production will further inflate corn prices in the addition to paying tax dollars for ethanol subsidies consumers will pay significantly higher food prices in the marketplace back in 2009 when many still believed in the Peak Oil Theory and before the u.s. became a net producer of oil some drivers might still have wanted their cars fueled by farms in the Midwest rather than by oil wells in the Middle East and so Pimentel calculated the amount of corn needed to power an automobile the average u.s. automobile traveling 10,000 miles a year on pure ethanol not a gasoline ethanol mix would need about eight hundred and fifty two gallons of the corn based fuel this would take eleven acres to grow based on a net ethanol production this is the same amount of cropland required to feed seven Americans if all the automobiles in the United States were fueled with a hundred percent ethanol a total of about ninety seven percent of u.s. land would be needed to grow the corn feedstock corn would cover nearly the total land area of the United States never mind the fact that corn will not grow in many places in the u.s. so that's why using an ethanol blend of gasoline is definitely a stupid idea and why I have my doubts about the EPA but then that's just my opinion I'm Matt Taylor and that's the way it is for now you

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