Ethanol, for example
One of the arguments used by those who are skeptical about the benefits of the unfettered free market is that only the Government, which is not motivated by short term profits, can be trusted to regulate policies that are impartial and motivated by the common good and not personal profit. This argument is often use when discussing the global warming and the alternatives to prevent it (assuming that human activity has any significant effect on the global warming phenomena).
John Stossel’s review of the the Ethanol myths, and can be set as an example for the fallacy in believing that central coordination and regulation of the society is more efficient than the chaos of the free market. The Ethanol become one of the most known products to reduce pollution, that increase the risks of global warming, and to lead the US toward energy independence. However, as Stossel argue, these claims are far from being correct; Ethanol is more expensive, after adding the cost of the government’s subsidies, doesn’t save energy, cannot be mobilized by pipelines, doesn’t lead to any significant reduction in dependency in foreign energy suppliers and is worse polluter than regular gasoline.
But if these argument are all correct why do the entire flock of Presidential candidates demonstrate strong support in Ethanol?
Surely, ethanol must be good for something. And here we finally have a fact. It is good for something — or at least someone: corn farmers and processors of ethanol, such as Archer Daniels Midland, the big food processor known for its savvy at getting subsidies out of the taxpayers.
And it’s good for vote-hungry presidential hopefuls. Iowa is a key state in the presidential-nomination sweepstakes, and we all know what they grow in Iowa [http://www.iowacorn.org/]. Sen. Clinton voted against ethanol 17 times until she started running for president. Coincidence?
"It’s no mystery that people who want to be president support the corn ethanol program," Taylor says. "If you’re not willing to sacrifice children to the corn god, you will not get out of the Iowa primary with more than one percent of the vote, Right now the closest thing we have to a state religion in the United States isn’t Christianity. It’s corn."
I’m pretty sure that the unfettered free market wouldn’t produce much worse results…
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