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  • High Cost of Energy, Food Hurt August Employment Numbers

    Heritage’s James Sherk says the employment estimates for August are being affected by the collapse of the housing bubble and the high cost of energy. The unemployment rate rose to 6.1%, a five-year high, primarily the result of large job losses among automobile manufacturers. He talked about the August employment numbers this afternoon on CNBC.


    Sherk says there are a couple steps Congress could take immediately to help American workers with these pocketbook issues:

    To get the economy back on its feet, Congress needs to address energy and food costs. Congress should increase the domestic supply of energy by allowing offshore oil drilling and the development of the oil shale in Colorado. These actions will increase the supply and reduce the cost of energy in the United States in the long term. Congress should also repeal the ethanol mandate that turns large portions of the U.S. corn crop into expensive auto fuel. Repealing the ethanol mandate would make gasoline less expensive. It would also make food more affordable.

    Posted in Energy, Scribe [slideshow_deploy]

    4 Responses to High Cost of Energy, Food Hurt August Employment Numbers

    1. Darvin Dowdy, Houst says:

      I disagree, Mr.Sherk. The Corn Ethanol Program has driven the world wide price of grain up considerably. Since the U.S. is the largest exporter of grain products in the world, the higher prices will eventually pull in massive amounts of foreign currency from abroad. This will feed a "growing" agri-business sector which will create solid, long-term jobs. High paying jobs.

      The world population is pushing 7 billion and these folks have to eat. Many nations simply can't produce the food needed for their own population. So they'll turn to the U.S. farmer. The higher prices will lure the American Entrepreneur back to the land and they'll produce the food that will be sorely needed over the next several decades.

      Its about the Higher Prices, Mr. Sherk. The U.S. farmer must have these higher prices to motivate them. No one has done more to fill the worlds belly than the U.S. farmer and they should be paid very well for doing so. Or they won't do it and there will be a world wide food shortage. So thank the Corn Ethanol Program for the much needed, much maligned higher prices. The Corn Ethanol Program must remain. DD

    2. Carl, Alabama says:

      My opinion is that this country needs to be supplied by its own energy. We need to stop all natural resource depletion. Each and every person in this country has the ability to stop participating in the fossil fuel consumption. Turning to bio-fuels and ethanol is not the answer because making bio-fuels needs outragious amounts of fertilizer, and fertilizer is made from oil. So we are not doing anything but making higher food prices by making bio-fuels and not doing anything to eliminate our fossil fuel consumption.

    3. Hilary Roemer, Nashv says:

      I think that if the corn ethanol program continued, the country would become an unpleasant place to live in. I just try to think about the future.

    4. Thomas Gray, South C says:

      Mr Dowdy,,

      I agree we should keep the mandates in place but for different reasons,, national security of basic transportation is critical in the event of a ww.

      As a former TRUCK OWNER most people don't realize just how far away much of the food they eat is grown and no matter what happens this food must be carried to market 300 million plus still must eat every day,

      and now the days of cheap oil are over we must also change the way we power food transportation, and personal transportation,

      The only energy source that I can see that is affordable is electricity to power electric motors for transportation both are proven to work well from trains to battery powered cars even battery powered bikes if one desires.

      The grid for truck transport must yet be built and as I travil about I see it will be no small job but trucks will need live electricity to pull heavy loads or we can just wait until we have a supply interuption of oil or can no longer afford fuel oil and suffer mass famine and civil unrest.

      electricity can be generated from various energy sources, I would like to see atom power put in place as a source becouse it's afforable,,it's clean,,and if i'm not mistaken can be used for well over one hundred years and in that length of time we may be able to truly put in place clean coal use. tom.

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