The Great Ethanol Scam

(page 3 of 3)

But until this massive economic slowdown, as Gusher of Lies (PublicAffairs, 2008) author Robert Bryce pointed out, even while the ethanol mandate was being ramped up we were increasing our imports of foreign oil.

Translation: The entire politically stated purpose of using ethanol had already been proven to be a false one before the program even got fully under way.

No surprise there. The premise that ethanol could give America the freedom to one day stop importing oil has always been fraudulent. Another fun fact: If we outlawed gasoline and diesel, thereby removing every last car, truck and SUV from our highways—no vehicles anywhere on any road in the country—America would still have to import oil because we would still use more crude than domestic production can supply.

Why is that? Crude oil is also used to make fertilizers, aviation fuel, home heating oil, and many other products. Not to mention polyester suits for car salesmen.

Comment Now, Public!

Pushed into it by the corn growers' and ethanol refiners' lobbying organizations, today the EPA is starting to go through the public comment phase on increasing the level of ethanol in our gasoline from 10% to 15%. Time and time again we have heard from these groups, who now claim that there is zero scientific evidence that a 15% blend of ethanol would do any damage whatsoever if the mandate for ethanol were raised. As with all statements made by vested interests, few outsiders have actually taken the time to look and find out whether this statement was true.

In fact, it's false.

Not one mechanic I've spoken with said they would be comfortable with a 15% blend of ethanol in their personal car. However, most suggest that if the government moves the ethanol mandate to 15%, it will be the dawn of a new golden age for auto mechanics' income.

One last thought: Most individuals who have had to repair their fuel systems in recent years never had the gasoline tested to see if the ethanol percentage might be the problem. Today most repair shops and new-car dealers are still not testing for ethanol blends. They're simply repairing the vehicles and sending their unhappy and less wealthy customers on their way. But, where dealer and repair shops are testing the gasoline, ethanol is becoming one of the leading culprits for the damage.

Sadly, when a truly bad idea is exposed today, Washington's answer is to double-down on the bet, mandate more of the same, and make the problem worse. Only this time around motorists will be able to gauge the real cost of ethanol when it comes time to fix their personal cars.

Ed Wallace is a recipient of the the Gerald R. Loeb Award for business journalism, given by the G. and R. Loeb Foundation, and is a member of the American Historical Society. His column leads the Fort Worth Star-Telegram's "Sunday Drive" section. He reviews new cars every Friday morning at 7:15 on Fox Four's Good Day, contributes articles to BusinessWeek Online, and hosts the top-rated talk show Wheels Saturdays from 8 a.m. to 1 p.m. on 570 KLIF.

Business Exchange

Track and share business topics across the Web.