Ethanol’s Economic Stimulus Package: Show US the money!
When compared to the urgency of the Presidential Stimulus Package, the downturn in the stock market and the upturn in unemployment, hard to swallow gasoline prices and "softer consumer spending" – the $40 billion in economic activity generated from ethanol production should be some long over due good news for the nation.
A new report, sponsored by the Clean Fuels Development Coalition (CFDC) and released by the Ethanol Across America Education Campaign, illustrates how US ethanol production facilities are generating hundreds of millions of dollars to local, state, and federal governments through direct and indirect economic generation -- and saving billions in US taxes.
"When indirect and induced jobs are considered, along with capital spending and investment, the ethanol industry is adding more than $40 billion of gross output to the US economy," said US Senator Ben Nelson (D-NE), Senate Agriculture Committee and Co-Chairman of the Ethanol Across America education campaign. Download a PDF copy of the Economic Impacts of Ethanol Production report here.
The media is full of articles discussing how consumers will be spending then sending their presidential/congressional stimulus check -- overseas. Clothes from Taiwan, toys from China, and of course gasoline from OPEC. Show the US the money! With all the recent debate about the ethanol tariff, I can assure you, if you buy ethanol or E85 the majority of your money is going to stay in the US.
Let’s see where your money would be going if you invested in some ethanol/gasoline blends or E85:
- Your money is going to help ethanol plants buy corn from US farmers. US farmers stand to gain $1.4 billion in net farm income resulting from the recently passed Energy Independence and Security Act of 2007. This new demand for ethanol was also responsible for saving you and the federal deficit $6 billion by lowering farm support program payments – just last year. Farmer…OPEC…Taxes…you finally get to choose.
- The corn will be processed into ethanol at one of the 134 US ethanol plants that are located across 26 states. Many of those companies are also listed on the US stock exchange.
- Those US ethanol plants were likely financed by a US bank (Economic Impacts of Ethanol Production, page 8) or other public US financial institutions.
- Those US ethanol plants employ about 200,000 US workers, based on the projected production of 9 billion gallons per year of ethanol production expected in 2008. (Economic Impacts of Ethanol Production, page 10)
- The ethanol would be blended at 10% levels and sold at thousands of US gasoline stations across 46 states.
- If you buy some E85, there is a 99% chance you are driving an American made in the US (Chrysler, Ford, General Motors) Flexible Fuel Vehicle (FFV). You may have one and not know it – you should find out -- the job you save may be your own. The E85 you purchased would have been sold by the 1,400 US gasoline station owners that have mad the investment to bring Americans what they say the want (more renewable fuels, and yet another choice). Don’t forget to get some made in the US of A Twinkies.
And Wait – There’s MORE !!
With that entire ethanol economic stimulus package, you get some additional items – included with your ethanol purchase.
- When you include the economic multiplier effect, that is money spent in the US will be recirculated and spent 7 to 10 more times -- more money earned on your origninal US investment.
Don’t Forget to Support the US Troops!!
“Energy security and the related economic and environmental issues should be the most important topic of the 2008 presidential election. Whoever is sworn in as president in 2009 must elevate energy security to the status of a core national goal and must directly engage the American people in the solution. If the next president addresses energy through the same old ideological prism, the chance to strengthen US national security and economic prosperity will be lost.” -- US Senator Richard Lugar (R-IN) The Hill, 1.22.08, Ranking Member, US Senate Commitee on Foreign Relations Committee, and co-chairman of the Ethanol Across America education campaign,
Who's in your wallet?
A Rebate from OPEC?
According to one statistic in the study, OPEC got their raise. Since 9/11 the rise in crude oil prices from $25/barrel to “$70/barrel” (the market price of oil when the quoted study was completed) OPEC revenues have increased from $70 billion per quarter to $280 billion per quarter from 2004 to 2006 -- costing the US $2.25 TRILLION since 9/11.(Economic Impacts of Ethanol Production, page 4)
“And these benefits are not limited to the cornfield states – ethanol projects are being developed from California to New York, and we are on the verge of technologies breakthroughs that can truly reduce our dependence on oil. As a member of the Senate Energy Committee, I am acutely aware of the perils of this dependence and it is critical that we stem the flow of hard-earned American dollars being used to buy foreign energy. – US Senator Tim Johnson (D-SD), Senate Energy Committee, and co-chairman of the Ethanol Across America education campaign (Economic Impacts of Ethanol Production, page 2), www.ethanolacrossamerica.net
With the last staple or our old economy finally showing signs of a slow down (e.g., McDonalds Hamburgers), its time for US to invest in the new energy economy of the future?
Which economy are you going to stimulate?
Burl Haigwood
CFDC
Excellent post, Burl. It's time people start to realize the contributions ethanol and other biofuels are making to the economy.
Posted by: mus302 | February 02, 2008 at 08:07 AM
The ethanol fuels hysteria is the most over hyped, expensive, illogical, and mis-guided federal program to come down the pike in years.
The stuff costs more to produce than oil based fuels, is subsidized to the hilt which makes the real cost far higher than the hydro carbon fuels, and at the same time contains less energy. Blended fuels cost more as an auto fuel and deliver less (15%) MPG. If we make E85 and get 15% less milage, where is the gain? Answer: there is none, and at the same time costs of food & other corn products, & transportation all increase!
It just makes the politicians feel good about having done something about the energy crisis.
Posted by: jcam | February 07, 2008 at 09:40 AM