Free Markets, Free People

Law Of Unintended Consequences

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Study: Government policy primarily the reason for sub-prime mortgage meltdown

Despite the attempt by government and particularly Democrats, to blame the financial meltdown we’ve endured on banks and unscrupulous investment companies, the buck stops with them according to a new study just released:

Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.

But a new study by the respected National Bureau of Economic Research finds, “Yes, it did. We find that adherence to that act led to riskier lending by banks.”

Added NBER: “There is a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam. Moreover, the effects are larger for loans made within CRA tracts,” or predominantly low-income and minority areas.

As we’ve mentioned previously any number of times, government policies can set and enforce preverse incentives.  And that has nothing to do with a free market.  That’s at best a mixed market.  So no, the problem wasn’t a “market failure”, it was the usual result of government intruding and setting preverse incentives that are contrary to good business practices and would likely not survive or succeed in an actual free market.

Here’d the bottom line:

The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street.

CRA regulations are at the core of Fannie’s and Freddie’s so-called affordable housing mission. In the early 1990s, a Democrat Congress gave HUD the authority to set and enforce (through fines) CRA-grade loan quotas at Fannie and Freddie.

It passed a law requiring the government-backed agencies to “assist insured depository institutions to meet their obligations under the (CRA).” The goal was to help banks meet lending quotas by buying their CRA loans.

But they had to loosen underwriting standards to do it. And that’s what they did.

Not only that, they guaranteed the bad loans with your money.  Why do you think so much money has had to be pumped into those two institutions?

You see the market had determined that certain standards protected their investments.  The government decided to ignore reality and push a social agenda using “race” as the basis for throwing out those standards and using their coercive power to implement the social agenda they preferred.

The result was predictable.

And the coverup as well.

~McQ


Welcome to the law of unintended consequences

Or here’s what happens when you play the green card and drive up the cost of energy to the point that it is unaffordable:

When the mercury falls, the theft of wood in the country’s woodlands goes up as people turn to cheaper ways to heat their homes. With energy costs escalating, more Germans are turning to wood burning stoves for heat. That, though, has also led to a rise in tree theft in the country’s forests. The problem has been compounded this winter by rising energy costs. The Germany’s Renters Association estimates the heating costs will go up 22 percent this winter alone.

Brilliant!

How much carbon is being emitted by wood burning stoves?  How about the deforestation?

Gee, nukes don’t sound so bad now, do they?

~McQ


And now the “rich” will pay…

I hate to say “I told you so”, but it isn’t just the rich who will be paying increased taxes. And what should be clear to anyone with the I Q of a turnip, is that this will cost people their jobs.

The compromise called for taxes to rise to 39.6% from 35% on personal income above $400,000. In a 2011 study, the Treasury Department found that raising taxes on incomes over $500,000 would affect roughly 750,000 small businesses organized as S-Corps, partnerships and other small entities.

Of course, you remember the Democrats claiming that this wouldn’t affect small businesses. Well, that was a flat out lie. But then we live in an era of lies which, if there political apparently, we’re willing to overlook. While most of us are. I just had to be one of those who isn’t.   Not that Democrats are the only political liars, but they seem to be the most prolific and the most blatant. Especially when it comes to budget, deficit, and financial matters. They are the quintessential “snake oil” salesman.

And they have sold us are huge bottle of snake oil.

Couple these tax increases with the Obamacare taxes that kicked in on the 1st, and you have two reasons for 750,000 small businesses not to hire. And you can bet none of them will go over 50 employees, and some may even reduce staff to get under that number.

These are your “rich”. They happen to be the “rich” would generate jobs, or what have, if they hadn’t been hit by two new taxes this year.

Your government at work.

~McQ


Gun ownership doesn’t correlate with murder rates

In a recent study two Harvard professors determined that banning guns will not solve the violence or murder problem. That in fact, guns really have nothing to do with it. Instead it is instead a matter of culture.

The reason that gun ownership doesn’t correlate with murder rates, the authors show, is that violent crime rates are determined instead by underlying cultural factors.  “Ordinary people,” they note, “simply do not murder.”  Rather, “the murderers are a small minority of extreme antisocial aberrants who manage to obtain guns whatever the level of gun ownership” in their society.

Therefore, “banning guns cannot alleviate the socio-cultural and economic factors that are the real determinants of violence and crime rates.”  According to Dr. Kates and Dr. Mauser, “there is no reason for laws prohibiting gun possession by ordinary, law-abiding, responsible adults because such people virtually never commit murder.  If one accepts that such adults are far more likely to be victims of violent crime than to commit it, disarming them becomes not just unproductive but counter-productive.”

The sort of reasoning Kates and Mauser use for  seems to be foreign to those who want to ban guns. It is not a problem of law abiding citizens because, as the authors state, law-abiding citizens don’t commit murder. Consequently, taking their guns away will have no fact other than to make them easier victims. The counter gun culture tries very hard to correlate guns with violence and murder. But looking at the number of guns owned in America as well as the number of Americans who own guns (45 – 52 million), we see that in reality gun crime and gun violence are statistically small.   As the authors state disarming law-abiding citizens is “not just unproductive but counterproductive.”

Additionally, they use these things called “facts” to gut  the myths that have grown up around gun ownership and violence. For instance, the myth surrounding the Soviet Union and its strict gun control.

In their piece entitled Would Banning Firearms Reduce Murder and Suicide? A Review of International and some Domestic Evidence, Don B. Kates and Gary Mauser eviscerate “the mantra that more guns mean more deaths and that fewer guns, therefore, mean fewer deaths.”  In so doing, the authors provide fascinating historical insight into astronomical murder rates in the Soviet Union during the Cold War, and they dispel the myths that widespread gun ownership is somehow unique to the United States or that America suffers from the developed world’s highest murder rate.

To the contrary, they establish that Soviet murder rates far exceeded American murder rates, and continue to do so today, despite Russia’s extremely stringent gun prohibitions.  By 2004, they show, the Russian murder rate was nearly four times higher than the American rate.

The authors also look at the gun control policies in Europe and find evidence that counters the correlation between gun ownership and violence.

More fundamentally, Dr. Kates and Dr. Mauser demonstrate that other developed nations such as Norway, Finland, Germany, France and Denmark maintain high rates of gun ownership, yet possess murder rates lower than other developed nations in which gun ownership is much more restricted.

For example, handguns are outlawed in Luxembourg, and gun ownership extremely rare, yet its murder rate is nine times greater than in Germany, which has one of the highest gun ownership rates in Europe.  As another example, Hungary’s murder rate is nearly three times higher than nearby Austria’s, but Austria’s gun ownership rate is over eight times higher than Hungary’s.  “Norway,” they note, “has far and away Western Europe’s highest household gun ownership rate (32%), but also its lowest murder rate.  The Netherlands,” in contrast, “has the lowest gun ownership rate in Western Europe (1.9%) … yet the Dutch gun murder rate is higher than the Norwegian.”

Dr. Kates and Dr. Mauser proceed to dispel the mainstream misconception that lower rates of violence in Europe are somehow attributable to gun control laws.  Instead, they reveal, “murder in Europe was at an all-time low before the gun controls were introduced.”  As the authors note, “strict controls did not stem the general trend of ever-growing violent crime throughout the post-WWII industrialized world.”

Citing England, for instance, they reveal that “when it had no firearms restrictions [in the nineteenth and early twentieth centuries], England had little violent crime.”  By the late 1990s, however, “England moved from stringent controls to a complete ban on all handguns and many types of long guns.”  As a result, “by the year 2000, violent crime had so increased that England and Wales had Europe’s highest violent crime rate, far surpassing even the United States.”  In America, on the other hand, “despite constant and substantially increasing gun ownership, the United States saw progressive and dramatic reductions in criminal violence in the 1990s.”

So, if one is honest and reads the evidence clearly, they are left with the understanding that the attempted correlation between gun ownership and violence doesn’t really exist. In fact, it appears that it is indeed the culture that is the cause of violence. One could even argue that disarming the public makes them the culture of victims. For example, one of the things we hear about England is that there has been a vast increase in “hot burglaries” since firearms have been banned. That ban has emboldened the criminals. They no longer fear the homeowner. They know the homeowner does not have a gun. Why? Because they’re law-abiding citizens.

Finally, Kates and Mauser talk about the seeming change in American culture and its impact on violent crime.

Critically, Dr. Kates and Dr. Mauser note that “the fall in the American crime rate is even more impressive when compared with the rest of the world,” where 18 of the 25 countries surveyed by the British Home Office suffered violent crime increases during that same period.

Furthermore, the authors highlight the important point that while the American gun murder rate often exceeds that in other nations, the overall per capita murder rate in other nations (including other means such as strangling, stabbing, beating, etc.) is oftentimes much higher than in America.

As should be obvious to anyone, those that are murdered really don’t care about the means that murder. Dead is dead.   The key to reducing murder is cultural. It has nothing to do with the weapon involved. As Kates and Mauser pointed out the per capita murder rate in other nations is often higher than ours. And many if not most of those include countries with strict gun bans.

It should seem clear, given the experience of many European countries with strict gun control, that banning guns does not solve the murder and violence problem. It would be nice for a change if we would learn from the experience of others. As horrific as the Newtown massacre was, it wasn’t perpetrated by a person anyone would consider a law-abiding citizen.  In fact, he had no concept of the principle of law or his responsibility to abide by it.

If we want to learn from that incident, the lesson isn’t about guns.  It’s about how inadequate our means of handling those who pose a danger to society really are.  Megan McArdle does a good job of discussing that very important point.

This study seems to point to what many would argue is obvious. However there is a strong, emotional lobby that continues to want to ignore the primary problem in favor of banning the instrument of murder in this particular case. It is foolish and shortsighted.  It would be feel-good legislation, made in haste as usual and in the end accomplishing nothing. We have a history of knee jerk legislation made in haste in which the consequences are unforeseen and usually unintended.

What should be clear is we don’t want to end up like England.

~McQ


Job burnout for doctors — will it intensify under ObamaCare?

Apparently job burnout effects about 40% of US doctors a recent survey revealed:

Job burnout strikes doctors more often than it does other employed people in the United States, according to a national survey that included more than 7,000 doctors.

More than four in 10 U.S. physicians said they were emotionally exhausted or felt a high degree of cynicism, or "depersonalization," toward their patients, said researchers whose findings appeared in the Archives of Internal Medicine.

"The high rate of burnout has consequences not only for the individual physicians, but also for the patients they are caring for," said Tait Shanafelt of the Mayo Clinic in Rochester, Minnesota, who led the research.

Now imagine the demand that 10 million newly insured that have been given mandated “free stuff” by ObamaCare will add to the load doctors are carrying (don’t forget, we’re supposed to be 90,000 doctors short by 2020).

Yup, again this really isn’t rocket science, but it also obviously hasn’t at all be thought through by our lawmakers, has it?

And the law of unintended consequences will take it’s due course because of that.

~McQ

Twitter: @McQandO

Facebook: QandO


Randy Barnett on Drug Prohibition

For a libertarian blog, this is a subject that we rarely opine about. Probably because its a rather dead horse that just doesn’t need any more beating. Even so, we do all too often have occasion to discuss the ill effects of the War on (Some) Drugs, such as the asset seizure case Bruce highlighted.

In that vein, Randy Barnett offers up his latest law review on the subject “The Harmful Side Effects of Drug Prohibition” and this abstract:

Some drugs make people feel good. That is why some people use them. Some of these drugs are alleged to have side effects so destructive that many advise against their use. The same may be said about statutes that attempt to prohibit the manufacture, sale, and use of drugs. Advocating drug prohibition makes some people feel good because they think they are “doing something” about what they believe to be a serious social problem. Others who support these laws are not so altruistically motivated. Employees of law enforcement bureaus and academics who receive government grants to study drug use, for example, may gain financially from drug prohibition. But as with using drugs, using drug laws can have moral and practical side effects so destructive that they argue against ever using legal institutions in this manner.

This article will not attempt to identify and “weigh” the costs of drug use against the costs of drug laws. Instead, it will focus exclusively on identifying the harmful side effects of drug law enforcement and showing why these effects are unavoidable. So one-sided a treatment is justified for two reasons. First, a cost-benefit or cost-cost analysis may simply be impossible. Second, discussions by persons who support illegalizing drugs usually emphasize only the harmful effects of drug use while largely ignoring the serious costs of such policies. By exclusively relating the other side of the story, this article is intended to inject some balance into the normal debate.

The harmful side-effects of drug laws have long been noted by a number of commentators, although among the general public the facts are not as well known as they should be. More importantly, even people who agree about the facts fail to grasp that it is the nature of the means — coercion — chosen to pursue the suppression of voluntary consumptive activity that makes these effects unavoidable. This vital and overlooked connection is the main subject of this article.

It’s a pretty interesting read. You can download the entire article by visiting Randy’s post linked above.


Income inequality: why you shouldn’t care

James Q Wilson makes many of the same points that have been made here over the last few months concerning the argument about income inequality that the left has been trying to use as a reason to tax the rich even more than they’re taxed now.   In sum, most of the left’s arguments rest in the premise that the economy is a zero sum game and that the income the “rich” are taking had to come from someone else’s slice.

That argument, much like the climate change debate, depends on a measure of ignorance among those they’re trying to influence. 

In reality, income inequality is nothing to be concerned about when it meets certain conditions.   Or, in other words, it isn’t a zero sum game and everyone has an opportunity to do better.

The first measure as we’ve noted before, is income mobility.  Wilson:

The “rich” in America are not a monolithic, unchanging class. A study by Thomas A. Garrett, economist at the Federal Reserve Bank of St. Louis, found that less than half of people in the top 1 percent in 1996 were still there in 2005. Such mobility is hardly surprising: A business school student, for instance, may have little money and high debts, but nine years later he or she could be earning a big Wall Street salary and bonus.

Mobility is not limited to the top-earning households. A study by economists at the Federal Reserve Bank of Minneapolis found that nearly half of the families in the lowest fifth of income earners in 2001 had moved up within six years. Over the same period, more than a third of those in the highest fifth of income-earners had moved down. Certainly, there are people such as Warren Buffett and Bill Gates who are ensconced in the top tier, but far more common are people who are rich for short periods.

In sum, you have both the top and bottom quintiles changing constantly as income earners move up or down fairly regularly.  That means those moving up must be getting the opportunity to do so somewhere, and the fact that there is a change of about half in the period studied says many are succeeding.

Who are these people that get ahead?  Well as Wilson mentions, a poor (I’m talking income here) student who graduates and gets a job in his or her field most likely won’t be poor in the sense of income very long.  And that goes for most of the “rich”:

Affluent people, compared with poor ones, tend to have greater education and spouses who work full time. The past three decades have seen significant increases in real earnings for people with advanced degrees. The Bureau of Labor Statistics found that between 1979 and 2010, hourly wages for men and women with at least a college degree rose by 33 percent and 20 percent, respectively, while they fell for all people with less than a high school diploma — by 9 percent for women and 31 percent for men.

Also, households with two earners have seen their incomes rise. This trend is driven in part by women’s increasing workforce participation, which doubled from 1950 to 2005 and which began to place women in well-paid jobs by the early 1980s.

Preparation, delayed gratification and a work ethic.  The old Puritan ideal.  Amazing the staying power it has, no?  That and adding a spouse with similar traits has a tendency to boost income to the household significantly.  Yet for some reason, the left (who, btw, are all about workplace equality and equal pay) now want you be jealous of those accomplishments.

If, as the left would prefer, we should be concerned with income inequality and the mechanism that advances it, the solution is simple:

We could reduce income inequality by trying to curtail the financial returns of education and the number of women in the workforce — but who would want to do that?

Well certainly not the left, who doesn’t want the rich to go away.  Instead it simply wants to make you hate them so they can justify taking more of their money.  But Wilson’s point is spot on.  This once was the key to the door of the American dream.  Now it’s the key to a class of citizen who is  vilified and called greedy and accused of not paying their “fair share”.  If anyone is killing the American dream, it is the American left.

The tax on the rich is offered as a panacea to all that ails us.  It will help pay down the debt and it will “level the playing” field.  One assumes that means that it will somehow help the poor not be poor. 

But Wilson points out, poverty in the US isn’t a function of the rich making a greater percentage of the national income.  Poverty is a cultural problem that has nothing to do with the rich or taxing them:

The real income problem in this country is not a question of who is rich, but rather of who is poor. Among the bottom fifth of income earners, many people, especially men, stay there their whole lives. Low education and unwed motherhood only exacerbate poverty, which is particularly acute among racial minorities. Brookings Institution economist Scott Winship has argued that two-thirds of black children in America experience a level of poverty that only 6 percent of white children will ever see, calling it a “national tragedy.”

Making the poor more economically mobile has nothing to do with taxing the rich and everything to do with finding and implementing ways to encourage parental marriage, teach the poor marketable skills and induce them to join the legitimate workforce. It is easy to suppose that raising taxes on the rich would provide more money to help the poor. But the problem facing the poor is not too little money, but too few skills and opportunities to advance themselves.

Most of the lack of economic opportunity and dearth of skills comes not from the rich making too much, but those in that condition making poor choices early in their lives.  Combine that with some of the less desirable cultural aspects of poverty and you end up with a fairly permanent underclass with little hope of advancing.

But that has nothing to do with the rich or how much they make.  Problem?  Yes.  A product of income inequality.  No.

And even then, poverty in this country is a relative thing:

Between 1970 and 2010, the net worth of American households more than doubled, as did the number of television sets and air-conditioning units per home. In his book “The Poverty of the Poverty Rate,” Nicholas Eberstadt shows that over the past 30 or so years, the percentage of low-income children in the United States who are underweight has gone down, the share of low-income households lacking complete plumbing facilities has declined, and the area of their homes adequately heated has gone up. The fraction of poor households with a telephone, a television set and a clothes dryer has risen sharply.

In other words, the country has become more prosperous, as measured not by income but by consumption: In constant dollars, consumption by people in the lowest quintile rose by more than 40 percent over the past four decades.

Income as measured by the federal government is not a reliable indicator of well-being, but consumption is. Though poverty is a problem, it has become less of one.

I always think of my mother when I read things like this.  She was defined as “poor” after retirement and my father’s death.  House paid for, cars paid for, and had more money in retirement (very large savings account) than she could spend, but when measured against the arbitrary income line, you’d have thought she was eating cat food and living in a cardboard box.   She lived very well, but her “income” – all she received a year from Social Security – put her under the poverty line. 

So Wilson’s point is correct – measuring consumption paints a completely different picture, and that picture says things are getting relatively better for the “poor” in this country even while the rich seem to be getting richer.   Something about “lifting all boats” in there.

All of this is, simply, class war populism.  President Obama said in his State of the Union address, “call it class warfare if you want.”  Okay, I will.  That’s precisely what it is.  It is the demonization of a class designed to shift blame from one entity (in this case the Obama administration) to another (the rich) and blame them for all the problems now extant. 

The fact remains that income inequality isn’t a problem.  It is certainly not even a major problem.  And for the most part, American’s reject the argument:

American views about inequality have not changed much in the past quarter-century. In their 2009 book “Class War? What Americans Really Think About Economic Inequality,” political scientists Benjamin Page and Lawrence Jacobs report that big majorities, including poor people, agree that “it is ‘still possible’ to start out poor in this country, work hard, and become rich,” and reject the view that it is the government’s job to narrow the income gap. More recently, a December Gallup poll showed that 52 percent of Americans say inequality is “an acceptable part” of the nation’s economic system, compared with 45 percent who deemed it a “problem that needs to be fixed.” Similarly, 82 percent said economic growth is “extremely important” or “very important,” compared with 46 percent saying that reducing the gap between rich and poor is extremely or very important.

So why does the left continue to pursue it?  Well, one of the reasons is, as mentioned, a need to blame someone else for the perceived failings of this administration. “It’s not our fault.  If only the rich would pay their fair share.  But the Republicans won’t allow it”.

The second, of course, is that left – champions of progressive taxation – see this as an opportunity to advance that ideal again.  Wilson asks the pregnant question which you’ll never get the left to agree too:

But what is the morally fair way to determine tax rates — other than taxing everyone at the same rate?

Indeed.  And:

The case for progressive tax rates is far from settled; just read Kip Hagopian’s  recent essay in Policy Review, which makes a powerful argument against progressive taxation because it fails to take into account aptitude and work effort.

Those are traits that can never be made “equal”.  Those are what propel some out of the lowest quintile and keep others in the highest quintile.  Since you can’t make people work harder or increase their natural aptitude for work, the only way to make things “equal” is to do what?

Penalize those who excel.

That’s precisely what the progressive tax system does.  In the case of this country, it then subsidizes those who don’t excel, thereby getting exactly what those subsides pay for – a permanent underclass, or at least the basis for one.

So, income inequality isn’t our problem.  Poverty is.  Or at least the American version of poverty.   And taxing the rich won’t do a thing to solve that problem.  Nope, the answer is much more complex and involved than that.  That’s what the left doesn’t want to face.  Because if it does, it is likely to find the root of the current problem of poverty in this country directly in programs leftists have touted for decades.

And we can’t have that, can we?

~McQ

Twitter: @McQandO


Law enforcement and show business–the two should never mix

Sheriff Joe Arpaio and Steven Segal have apparently teamed up to give Segal’s reality show about law enforcement some umph.  It has led to a pretty bizarre and dangerous bust.  But not “dangerous” in the way you might think.

Apparently Arpaio called out just about everything with a badge to bust a, wait for it, suspected cockfighting entrepreneur.

No, really:

Of course Crooks and Liars, where the vid comes from had to sensationalize even further an already outrageous story by saying a “tank” was used.

It wasn’t a tank.  It was an armored car (and an ancient one at that).

armoredcar

But to take down a suspected cock fighter, it took Arpaio, tens of deputies, a SWAT team, bomb robot and armored car?  Oh, and a film crew — don’t forget the film crew.

This is the point Radley Balko makes constantly about the militarization of the police in this country.  If they have it, they want to use it.  And when you use things like armored cars and SWAT teams, bad things can happen.

One of the things police don’t seem to do very well is due diligence intelligence work.  Had they spent any time whatsoever watching the place they felt compelled to use the armored car and SWAT team on, they’d have discovered that the owner was there alone, unarmed and … asleep.

Guys like Arpaio scare the living crap out me.  Good police work doesn’t require “overwhelming force” the vast majority of the time.  And this was obviously one of them.  It makes sense in military doctrine when you attack an enemy.  Police, on the other hand, enforce the law.  They should be trained and required to use only the force necessary to do that.  The opportunity for something to go horribly wrong are increased every time an operation like this is mounted.

It obviously wasn’t necessary to destroy property like Arpaio did here to arrest this man.  But then, it wouldn’t be much of a show for Segal if all that happened was a couple of deputies knocking on the door and arresting a sleepy man for suspected cock fighting would it?

The tail, in this case, is wagging a very dangerous dog.

~McQ


Gore: corn-ethanol subsidy “not a good policy”

Holy moly, perhaps the oceans will rise and hell will freeze over – but it won’t be because of “climate change” or whatever the warmists are calling it this week.  Nope, Al Gore has found a government program he doesn’t like.  Yup, that’s right.  And not only that – and this is the hell freezing over part of it – it’s a “green” government program.

Yes, friends, Al Gore says that the US government’s subsidies for corn ethanol is “not good policy”.

"It is not a good policy to have these massive subsidies for (U.S.) first generation ethanol," said Gore, speaking at a green energy business conference in Athens sponsored by Marfin Popular Bank.

"First generation ethanol I think was a mistake. The energy conversion ratios are at best very small.

"It’s hard once such a programme is put in place to deal with the lobbies that keep it going."

Gadzooks.  A flip-flop.  He supported the program previously.  Oh, wait – he was just making a political statement then:

He explained his own support for the original programme on his presidential ambitions.

"One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president."

Dear farmers – vote for me and I’ll pay you outrageous subsidies to grow corn for ethanol.  "Certain fondness” my rear end.  Nothing has changed about Gore in the “I’ll say anything to get what I want” department, has it?  Flippin’ piece of crap – buying votes with your tax dollars.   Not that he’s the only one that does it, but for heaven sake, given the financial situation we’re in does he have to be so freakin’ glib about it?

Of course the reason corn-ethanol is a crappy idea is the subsidies are high and thus 40% of the corn grown is grown for ethanol.  That puts it in competition with corn for food.  Any guess what corn based food products have done since this nifty little program has been in place?

Yes, they’ve gone up quite a bit.  In this case, we call that the “law of unintended consequences” only as a rhetorical device.  The consequences may have been unintended but there were any number of economists saying “if you do that you’re going to drive up food prices”.  And, of course, the answer from our government experts was the “you don’t know what you’re talking about”. 

You know, the same experts that have told us that more of us can have more health care and it will cost less.

Anyway I thought you’d enjoy Gore’s little walk-back.  Don’t forget the same experts who brought you corn-based ethanol and higher food prices will be “debating” an energy bill at some point in the future.  I’d hide my wallet before then if I was you.

~McQ

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