Thursday, October 18, 2007

It Refutes Itself

Slivinski says it is difficult to pin down the Iowa corn farmers' harvest of dollars because the subsidies come from exemptions from excise taxes and tariffs (54 cents per imported gallon) that stifle competition from cheap ethanol imports. It is, however, reasonable to add $2 billion to Iowa's gain from Washington's rigging of the system, so the average Iowan's gain is at least $1,963.65.


Suppose Iowa did not have crucial presidential nominating caucuses. Or suppose it had them but its crucial crop were, say, broccoli rather than corn. Would the federal government still be, well, rigging the system to create a phony "market" to satisfy a specious "demand" for mandatory and subsidized ethanol? No, but it probably would be mandating broccoli at every meal.


Many politicians pander, as Edwards does with gusto, to Americans' current penchant for self-pity. Hence the incessant talk about "the forgotten middle class." Because such talk is incessant, it of course refutes itself.