High Cost of Energy, Food Hurt August Employment Numbers
Posted September 5th, 2008 at 5.03pm in Energy and Environment, Enterprise and Free Markets.
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.

September 6, 2008 Darvin Dowdy, Houston, TX writes:
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