Friday, April 4, 2008

A lesson in Economics

Directly from Powerline

Nancy Pelosi is one of a number of Democratic politicians who married rich men, thereby freeing themselves to meddle in your life and mine. Today, in her press conference on Iraq, she sympathized with the common man who has to worry about the cost of groceries:

More troubling economic news arrives nearly every day, consumer prices for staples, such as milk, bread and eggs, rose by the largest amount in 17 years.

That's true. But, while rising grocery prices are caused largely by government policies, they have nothing to do with the war in Iraq. Food prices are increasing mostly because of the massive subsidies that support the ethanol industry. All across the Midwest, ethanol plants have sprung up, each one consuming huge quantities of corn. Iowa is now, I believe, a net importer of corn. A large percentage of America's corn crop is being turned into ethanol rather than hamburgers, steaks, bacon, pork chops, eggs, milk, etc. Skyrocketing demand for corn has led to unprecedented prices.

It's called the law of supply and demand. Pelosi should ask her husband about it. I'm sure he could explain it to her.

See you next Tuesday Nancy!

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