Discussion on Corn, ethanol and High fructose corn syrup
Just some obsevations I posted on facebook. I've been ranting lately. I think the current state of the country is starting to ge to me, considering I'm in a crap hole of a country and might not recognize the place when I get back home.
I had an interesting discussion today about the proposed taxes on drinks with High Fructose Corn Syrup. Call it a sin tax, call it the government's fault.
Why does everyone use HFCS in their drinks? It's cheaper than sugar.
Why is it cheaper than sugar? The government subsidizes corn production, otherwise farmers would grow something that paid better. Also, we tax imported sugar so American producers can charge more. We pay on average 56 cent/pound, the rest of the world pays 31.6 cent/pound.
So basically, the government is going to tax using the end product of a crop that they subsidize in order to influence consumer behavior. It seems if the government didn't get involved in the first place the free market would have settled it long ago. Less farmers grow corn, the price of corn goes up, it costs more to make HFCS, less gets used or producers switch to using sugar. Not that it would solve the obesity epidemic, because a calorie is a calorie despite the evil rep of HFCS. But then we wouldn't have cheap E85 either, because the only reason it's cost effective is because the corn is subsidized and producers were subsidized 51 cent/gallon. At least that has been rescended. Lets not talk about BTU's per gallon or the need to burn a richer fuel mixture, which actually makes it more expensive to use. Down the rabbit hole I go, I think I'm channeling Dennis Leary.
Glocktalk brain trust, feel free to shoot holes in my theory. I can take it.