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Burnett Ignores Ethanol’s Role In Higher Food Prices
By Mr Ethanol | March 13, 2008
CNBC contributor blames ‘energy prices and a weak dollar’ for food inflation but neglects consequences of federal fuel mandates.
Amidst concerns about oil prices and inflation, journalists forget one thing: government-mandated ethanol.
CNBC’s Erin Burnett ignored the effect it has on the price of food at the grocery store on the March 12 NBC “Today” show.
“Energy prices and a weak dollar are to blame for the rising price of basics like chicken, milk and butter,” Burnett said. “And as wheat prices keep skyrocketing, everything from pizza to cereal will continue to cost more.”
But why are wheat prices skyrocketing?
What Burnett didn’t explain was that as farmers dedicate more land for corn to meet the demand for subsidized ethanol production, land for wheat becomes scarcer, driving up the price.
And as more corn is used producing ethanol to mix with gasoline, less is available to feed livestock or be used for human consumption. As it gets more expensive to feed cows, beef and dairy products become more expensive for consumers.
It’s basic supply and demand, affected by government intervention in the energy and agricultural markets. Read full article.
Topics: Ethanol, Negatives, News, Prices, Videos |
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