HappySqurriel on 24 January 2009
| akuma587 said: I wouldn't go as far to say misinformation, any economist would agree that if you raise input costs that the price of a product is going to rise. I think the ethanol conspiracies are getting a little extreme considering you guys are condemning one conspiracy with another. |
It's not a conspiracy ... Its economics!
If you have a product that is at equilibrium then supply equals demand. If the quantity demanded of this product increases faster than the quantity supplied does then the price of the good increases. I don't remember the exact statistic, but I remember hearing the amount of grain required to fill a tank of a SUV with ethanol was the same amount of food required to feed a person for one year. Now, as you can imagine, you don't have to produce that much ethanol to push the quantity demanded of grain enough to drive the price of food up dramatically.
