Ethanol Subsidies: Even Stupider Than We Thought

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Why do we import 4 million gallons of ethanol from Brazil every year and then export 2 million gallons of it right back? Because U.S. ethanol regulations require us to use a certain amount of “advanced” ethanol — i.e., ethanol that produces less carbon than gasoline, which corn ethanol mostly doesn’t — but it turns out we’re not doing too well on the advanced ethanol front. Our corn ethanol subsidies are so lucrative that this is where all our R&D dollars go. But American ingenuity knows no bounds, so we’re meeting the regulation by exporting our crappy corn ethanol to Brazil and receiving their sugar cane ethanol in return. It’s all the same, but cane ethanol counts as advanced, so shipping our stuff to them and their stuff to us allows us to meet the minimum requirements for use of advanced ethanol. It all makes sense in a demented sort of way.

This inspiring tale comes from Timothy Wise, who has more details here. Once again, we learn that ethanol subsidies are possibly the stupidest government program ever invented. And that’s saying a lot.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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