Ted Kennedy Admits Rising Food Prices Due to Increase in Ethanol Production

Cross posted on Grizzly Groundswell

Two liberals finally have stated publicly one of the dirty little secrets behind the rising price of food. Ethanol. We are taking our food and trying to turn it into gas. But it is more than just our food that we are literally letting go up in smoke. It is also the feed used to raise the cattle and poultry that becomes our food that is causing beef and chicken prices to rise. It simply costs more to raise cattle and chickens. There is a limited supply of corn but with the increased demand because of mandated alternative energy the price rises. Supply and demand economics, it is taught, or at least it used to be, in early economics classes.

 This was a consequence that was talked about on talk radio but was largely ignored by the mainstream media and the politicians who mandated this policy. However, it is finally beginning to get the attention it deserves, and now Ted Kennedy and Joe Lieberman have admitted it is true.

 Senators Ted Kennedy (D-Mass.) and Joe Lieberman (I-Conn.) told Cybercast News Service on Wednesday that they believe there is a connection between federally mandated consumption of ethanol, a gasoline additive made from corn, and world food shortages.

“I think very definitely there is a clear connection between our ethanol use and world hunger,” Kennedy told Cybercast News Service . “The connection is becoming more evident and understood more every day by the American people. And they understand that there is very little that’s being done to address the problem.”

 Politicians created this grain shortage by mandating we turn it into fuel in the first place, now not enough is being done, according to Ted Kennedy, to address the problem that they created in the first place. When this problem is addressed it will lead to another unintended consequence. It always does.

  You remember Larry “wide stance” Craig? The disgraced Republican who was looking for love in a glory hole at an airport restroom only to put the moves on an undercover officer had this to say:

“Ethanol today has brought the price of gas down by 20 cents,” Craig said. “American consumers may be paying a little more for food but they are also paying a little less for gas because of ethanol in the market. It’s a worthwhile trade.

 He says, sure food may cost more but gas is a little less so it is a fair trade off. How is that? Because it feels better that gas is a little lower we shouldn’t mind that food is higher. Now that sounds more like a Democrat to me. But look who it is coming from. (Pardon the pun). In a way this is the mentality that defines the Democrat party. It is a redistribution of wealth of sorts. Take from oil and give to farmers. Either way we are paying more. Both gas and food are necessities so we will buy both, what difference does it make if gas is lower but food is higher? How much are we saving. If gas was .20 higher as wide stance said it would be but food prices had not risen who is to say that we wouldn’t be better off?

 This is what happens when politicians get involved in the free market. Unintended consequences happen. This is a consequence that may have been unintended, but it wasn’t unpredicted by economists who know how the free market works.

 The prices of food are only going to increase as ethanol production increases. Perhaps it is time for us all to get on food stamps, that may be the only answer. Let the government provide our food. They have done so well providing for us in every other way. NOT!

 The same will apply to health insurance. If you think health care is expensive now, just wait until it is provided by the government. Free has never been so expensive. Another unintended consequence.