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June 27, 2014

Dueling Ethanol Stories

Ethanol fights for its money.

When a business model’s foundation rests on government subsidies and regulation, you can be sure it will fight like hell when the winds of politics shift. Recently, the Congressional Budget Office released a study which said the cost of gasoline would rise 9% in three years if Congress does not repeal the Renewable Fuel Standard. That 2007 legislation required huge quantities of ethanol be blended with gasoline and also gave subsidies away like candy corn. Now, the protectors of the sacred ethanol (may it burn in peace) have launched a campaign saying ethanol keeps prices down. Americans United For Change released a television ad warning the war in Iraq will drive up gasoline prices – but ethanol will save the day. Two stories. One’s right and the other wrong. Big Ethanol is more motivated to lie. More…

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