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Joshua A. Byrge, Kevin L. Kliesen
Corn-based ethanol can make a dent in demand for oil, but at what price? Food costs go up. Environmental damage worsens. If oil prices fall, ethanol production will probably collapse—as it did 20 years ago.
As painful as it may be, letting the housing and mortgage markets sort out these problems on their own would be best for the economy in the long run. Large-scale government interventions are not necessarily the best policy responses, although those made truly needy by this crisis need to be helped.
Bermuda gets $46,000 a year, while Iraq receives $2.3 billion. What motivates donors to give aid to other countries? Need—and the need for favors.
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