Ethanol: Good For Drivers, Bad For The Hungry

It is the latest in feel-good environmentalist and economic politics--keeping the family farm busy to help relieve America's dependence on foreign oil. The science isn't perfect yet, but the ethanol industry is beginning to boom with dozens of new plants currently under construction or on the drawing board.

Studies have shown that there isn't enough land available in America to even grow enough corn to replace oil, but the introduction of this relatively new, renewable fuel could be a significant help in lowering overall oil demand.

So, what is the catch? Apparently each kernel of corn that is processed into ethanol is one kernel of corn that cannot be eaten by the world's starving masses.

From The Financial Times via Truth About Trade Technology and Right Nation.

Experts say that as petrol prices climb, farmers are diverting more of their harvests towards producing fuel rather than food or feedstock for animals. The new estimate highlights mounting competition between food and fuel that could drive up the price of food, pitting wealthy western car drivers against hungry consumers in developing countries.

Look out America because the debate is already being framed as "wealthy" westerners versus the "hungry."

Look for enhanced vilification in our very near future.