Read here and here. No wonder Newt thinks ethanol subsidies are such a great idea - he literally gets paid huge bucks to say that. He's definitely going to be a big hit in the Iowa 2012 Republican primary where a large number of the ethanol-loving parasites live and vote.
Over the last 15 years, corn farmers have averaged about $5 billion per year in subsidies. In addition, ethanol blenders get 45 cents per gallon, almost another $5 billion, which is indirectly shared with the corn producers. And finally, the federal government imposes a 54 cent/gallon tariff on cheap foreign ethanol products, which is another indirect subsidy for corn farmers (the tariffs protect them from a cheaper and better product, foreign sugarcane ethanol).
Sooo, while the farmer and corporate welfare queens are pigging out at the ethanol-subsidy trough, a new peer-researched report in the Journal of American Physicians and Surgeons indicates that the subsidized/mandated biofuel polices are increasing the levels of poverty, starvation and death across the globe.
"Combining these estimates with estimates of the increase in poverty owing to growth in biofuels production over 2004 levels leads to the conclusion that additional biofuel production may have resulted in at least 192,000 excess deaths [editor: during 2010]...Based on current technologies, higher biofuel production necessarily means greater diversion of crops and/or cropland to the production of fuel rather than food. The iron law of supply and demand dictates that this would almost unavoidably increase global food prices over what they would otherwise be. Indeed, this is confirmed by studies of the impact of biofuel production on global food prices,..." [Indur M. Goklany 2011: Journal of American Physicians and Surgeons]
With the U.S. representing some 70% of world corn production, and with ethanol now consuming 40% of that U.S. production, there is less corn to feed both people and animals, which ultimately drives prices higher on a wide variety of food products. The higher prices mean many eat less or nothing at all, which is increasing the incidence of starvation and death.
Thank you, Newt and Iowa parasites. (And yes, subsidies for all energy sources/parasites should be killed, not just those for ethanol.)