Tiger Bass
5,000+ posts
CarAudio.com Veteran
One of my professors told us something very interesting today. The government is actually giving tax breaks to those countries who import ethanol gas and better yet, the government subsidizes(give them extra money) farmers NOT to grow corn. This is all in the sake of keeping ethanol prices up. FYI for those who dont know, ethanol is cheaper by quantity but it does not get you as good mileage. So right now, the ethanol and gas prices are about equal. So the government is effectively keeping gas and ethanol prices up by not allowing ethanol become cheaper. And the idea behind that is that Ethanol and Gasolina and substitute products. If the price of one product goes down, more people will begin to use this one over the other. This would be gasoline. This would effectively in turn reduce the demand for gas. Reduction in demand for gasoline would mean a lower in price. Thus, the government is screwing us over.
