Thursday, July 12, 2007

Unintended Consequences, Part II

Back on May 18, I posted on the policies promoting ethanol production. Now today, Dr. Henry I. Miller has an interesting post on TCS Daily that gives us a little more to consider. Just one more aspect to use when discussing the concepts related to economic policy-making.

I look forward to your comments.

Posted by TSchilling at July 12, 2007 10:10 AM

As you note, there is often a disconnect of this type. It is especially true of issues involving economics, since public understanding is especially low. There is a special problem with ethanol. Not only does it seem like a good idea at first glance, it has strong interest group support. And finally, any Presidential candidate expecting to do well in the Iowa caucus, an early, field-winnowing test, must be an active ethanol supporter.

Thanks for the pointer to a good article, Tim.

Posted by: Jeff Miller at July 12, 2007 2:50 PM

Great article and I look forward to using it in class to discuss unintended consequences. The article is ripe with important information regarding energy efficiency, the costs of using corn to produce ethanol and the projection of
what could happen if the corn yield is affected by drought or disease. This article is can be used to demonstrate supply and demand problems, the effects on current food prices and lead into a discussion on current headline inflation numbers. We certainly benefit from your keen lookout for articles we can use in the classroom. Thanks Tim.

Posted by: Julie Chismar at July 19, 2007 1:35 PM

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