Everyone To The Stimulus Trough
It was only a matter of time before the lines are blurred between “stimulus” and “bailout”. This is a dangerous precedent that our government is setting, where bailing out industries “critical” to our economy is practially interchangeable with massive government spending to justify a “stimulus”.
And it’s not just the auto industry trying to suckle at America’s bailout teat. The ethanol industry is lining up for their slop:
The Renewable Fuels Association, a trade group for the U.S. ethanol industry, has spoken with staff members from Capitol Hill and President-elect Barack Obama’s team and “provided them with some ideas on how to craft the language of” an economic recovery package, said Matt Hartwig, a spokesman for the RFA.
Hartwig said RFA has suggested a number of steps including setting up a $1 billion short-term credit facility so ethanol producers could finance current operations; a $50 billion federal loan guarantee program to finance investment in new renewable fuel production capacity and supporting infrastructure; and a requirement that any auto maker receiving federal aid only produce new vehicles that can run on any blend up to 85% ethanol, beginning with the 2010 model season.
The RFA is one of many business groups looking for help in the financial stimulus legislation expected to move through Congress early next year. It’s not clear how much support RFA has for its proposals; calls to several senior lawmakers close to the industry weren’t immediately returned.
“We’re not asking for a specific bailout, but rather, as a trade association, we’re providing ideas to an incoming Congress and a new administration about ways to bolster the domestic renewable fuel industry,” Hartwig said. “We’re doing what all trade organizations are doing – providing the Obama administration with ideas.”
A bailout? Nah. Just $50 billion or so to tide them over until they blow through that money. Then what? Despite the fact that we know ethanol is not cost effective and is inefficient as a source of energy. This is the epitome of what’s wrong with the liberal mindset: just throw some taxpayer money at any given problem and hope it goes way, just to say that they did something. More liberal tripe.
(UPDATE)
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