Of Cane and Ears

Some of you already know about my ire with the American Agricultural sector already, and some of you may know my scoffing nature at the perpetuation of the myth of the "American Farmer" (best seen in car commercials, and heard to the tunes of Mellencamp).
But let me just offer up a quick post to support it, with an example of the tyranny of the American Agricultural industry, which only accounts for a paltry .9% of our GDP, and employs a total national work force that is barely the size of the Dallas-Ft. Worth Metroplex (not to mention the fact that according to US census data, a small percentage of farmers actually own something to the tune of 80% of the land).

Brazil has for forty years produced sugar cane ethanol, a cheaper more environmentally friendly version of the corn ethanol that Iowa Senators would have us believe will save the world (despite the fact that it takes about as much oil to make corn ethanol as it saves). Cane sugar ferments better, and its cheaper. And the US can import it from people who have experience with it. The Brazilian ethanol industry faced a crash in the 80's and 90's due to lowering oil prices, but has made a come back to the tune of 45% of car fuel use in Brazil. So its survived boom and bust. Its a solid industry, and its back on the rise.

Bush, in the course of his Latin America trip, has come under fire from Latin American groups who plain just don't like him (although the 6000 who came out to protest in Sao Paolo seems a small number for such a huge city), and of course the Farming Lobby in the States which wants to keep the absurdly high tax on Brazilian ethanol oil. Oh come on, Quijote. How high can it be?
54%, according to the economist. That's right. 54%. And it's still cheap enough to where the Brazilians are finding it profitable to ship some anyway. Imagine what would happen if we lowered the protectionist barriers and let an EFFICIENT ETHANOL SYSTEM come into the market. Imagine making manufacturing deals with Brazilian firms with forty years experience making the transition that much easier for the United States. But NPR reported that when asked by a Brazilian reporter if Bush will lower the tariff...
"Absolutely not. That will not be happening."

:|

Dadgummit George, grow a pair when it comes to something other than invasion. You really think the farmers are going to hurt you that badly with one and a half years to go, or are you honestly so ignorant about trade that you think protectionism is a good thing?
We left the manufacturing sector to twist in the wind against the Japanese, why is it we're so up in arms about protecting an even smaller part of the population who is in all honesty costing us! (opportunity cost of buying cheaper foreign grown food).

Granted, sugar cane ethanol is not a magic bullet, but there are advantages. First of all we would buy less oil from Venezuela and the Middle East. Bonus. We could help bring industry to Central America and Caribbean, creating jobs, and helping stem the tide of immigration that is causing so many senators and cable TV talking heads to get crawdads in their shorts. It could actually help to turn the US on to ethanol without expensive research into making corn ethanol more efficient, which will cost time and money. Obviously it has its drawbacks, from the corrupt and monopolizing Brazilian farm families gaining more wealth and power, to deforestation issues. But those are issues that Brazil must deal with, and hopefully is dealing with.

So, yes. Thank you, American Farmer and your strangely powerful congressional lobby. Due to protectionist tariffs and general jackassery in the face of the inevitable globalization of trade, you are aiding in the flood of immigrants you in general oppose (when you aren't trying to hire them for low wages), you're keeping the US an oil based economy, and you're helping Hugo buy those nice fancy red berets.

Back in T-town for a bit, then off to Boston to La Ardilla. I'm excited. My presentation in microeconometrics went well, as did my Labor Econ presentation. So far I have to acceptances into doctoral programs, and hopefully there will be more to come. Other than that, just studying, wishing Ardilla was here, and killing time by writing silly posts about sugar and corn. Fun stuff.