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'Power Hungry' Author Robert Bryce on how ending ethanol subsidies would impact the energy and commodities market.
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45 cent per gallon tax credit in my next guest calls these ethanol subsidies.
The longest running robbery a tax payers and modern history Robert Bryce is the author of power hungry.
The -- of Green energy and the real fuels of the future a senior fellow at Manhattan institute as well.
Robert -- to be here this Coburn amendment would get rid of this tax credit -- 45 cent tax credit.
But what about the other two legs of the still that prop up the ethanol industry.
And that would be the -- today and then also the tariff on imported -- Well -- and as I understand that the amendment that Coburn is pushing will also eliminate the tariff which is absolutely essential.
But if you look at at this the corn ethanol scam.
In total.
This is the only energy program.
In America that has -- that tariff a mandate and a subsidy so.
We could see the senate vote today to eliminate the -- from the subsidy which.
Both of which are long overdue.
And -- -- and -- -- force then the ethanol producers in the US to compete on the global market bit.
Against Brazilian producers and producers in other countries it's only fair.
Awarded due to energy prices broadly speaking -- -- potentially due to agricultural prices again.
We have a UN report out saying that these bio fuel subsidies.
Drive up the price of agriculture.
Well -- I can point you to more than a dozen studies that have been been done over the last three years Purdue University.
International Monetary Fund World Bank.
All of come to the same conclusion that the corn ethanol scam is driving up food prices.
And end in my view this is absolutely unconscionable what it's been happening.
We've mixed energy policy with food policy with agricultural policy.
This is not an energy program it is -- just a simple.
Agricultural subsidy let me give you the numbers this year are right now rather.
You the US is burning 40%.
40% of its corn crop.
That's 15%.
Of all global corn production it's 5% of all global grain.
In order to produce the energy equivalent of six tenths of one person yet.
Of global oil needs that this is madness that goes beyond madness into -- realm I can't even described -- But Agriculture Secretary Tom Vilsack did say he believes pulling support.
For the ethanol industry now would be bad for the economy it cost jobs.
Well look at that and if that's the case that -- times.
And my my response is well I'm sorry about that remember the agricultural secretary Vilsack is from Iowa.
That's his view on the world Iowa's the -- is America's biggest ethanol producer.
But if it's going to cost jobs -- say well okay that's fine if you look at the Congressional Budget Office numbers on the corn ethanol scam.
They estimate the cost of replacing one gallon of gasoline with ethanol at a dollar and 78 cents before the consumer buys it.
If you look at the ethanol industry's own claims that it.
Create 70000 jobs we're talking a a price per job of something on the order.
Over 200000.
Dollars it's a terrible deal for the consumer.
The three legged stool to legs could fall Robert thank you so much Robert Bryce author of power hungry read it if you haven't already.
