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The U.S. Subsidy That Empowers Putin

David Frum writes in The Atlantic about how ethanol subsidies empower Putin.

The C3 Take
  • The ethanol mandate for gasoline has entrenched special interests, increased gas prices, and provided negligible environmental benefits.
  • Subsidizing ethanol and corn production has also allowed Russia to strengthen its grip on the world’s food and wheat supply.
  • Eliminating the ethanol mandate will reduce the price at the pump and at the grocery store by encouraging more domestic farmers to diversify their crop yield.

“Ending the ethanol mandates and subsidies will boost world food supply. More food supply will reduce price pressures. Less pressure on food prices will remove a Russian weapon of intimidation.”

Read the full article here.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.

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