With ethanol, everyone gets a share

Posted By Blake Hounshell Wednesday, September 19, 2007 - 2:30 PM Share

The economics of corn ethanol have never made much sense. Rather than importing cheap Brazilian ethanol made from sugar cane, the United States slaps a tariff of 54 cents a gallon on ethanol from Brazil. Then the government provides a tax break of 51 cents a gallon to American ethanol producers — on top of the generous subsidies that corn growers already receive under the farm program.

The above passage from today's New York Times editorial recalls nothing so much as this gem from Milo Minderbender, the mad genius businessman in Catch-22:

But I make a profit of three and a quarter cents an egg by selling them for four and a quarter cents an egg to the people in Malta I buy them from for seven cents an egg. Of course, I don't make the profit. The syndicate makes the profit. And everybody has a share."

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