September 9, 2012
Is it the corn crop we should be
worried about??
In a recent column I discussed the
Midwestern drought and its negative impact on corn, and then, food
and gasoline prices. I blamed our elected in Washington for
collaborating with the corn industry to create the ethanol boondoggle
in the first place. Tax payer subsidies to help build the ethanol
distilleries and distribution systems, and the EPA "allowing"
up to 15% ethanol in our gasoline, were all it took for our elected
officials to once again enrich a specific industry and defraud we the
people.
Now I learn about insurance against
weather-related losses available for corn growers which covers 65 to
85% of lost income resulting from the drought. This initially didn't
bother me much, after all, who among us doesn't buy insurance of all
kinds...homeowners, life, health, accident, auto, etc. to protect
against unforeseen losses.
My attitude changed when I saw an
economist from Purdue University explaining corn insurance. He
described it as insurance designed to protect corn farmers from most
of their weather related losses...and the best part (his words) is
nearly 60% of the premiums are paid by the federal government. Now
why would our lawmakers do this? Why are tax payers providing a
substantial portion of loss-protection insurance premiums for this
one industry...especially one blessed with tax payer funded subsidies
and special EPA rules? This same person then said the government just
couldn't allow farming families to fail. Why not I wondered...what
makes this industry, and make no mistake it is a very wealthy and
powerful industry, so unique it has to be so favored? After all, most
other businesses are allowed to prosper or fail on their own? And
don't forget, American corn growing today is typified by huge
corporate farms, not by the small family farms of the past.
Of course, the obvious answer is this
giant industry has a powerful and effective lobby in Washington being
aided by the elected lawmakers in the corn growing states. Together
they collaborate to write and get passed the legislation needed to
ensure the corn industry is protected and prospers...no matter what.
Not surprisingly, this also results in incredible revenue
opportunities for another powerful special interest group...the
insurance industry. When two powerful special interests like these
tango...they steal even more of our money to use for their joint
benefits.
Do you wonder why those who raise
cattle or other livestock can't get similar insurance? Don't worry,
it's likely only a matter of time. Sooner or later, every
significant industry will likely be buying similar insurance against
losses. Oh, wait a minute, I almost forgot, some won't have to. We've
already seen what happened in the financial and auto industries. The
only thing missing there was the insurance industry missing out on
their share of the loot because we paid for these bailouts directly!
Why can't our millions of small
businesses in America, who are our main job creators, buy insurance
against losses? You know the answer...because they can't manage to
unify and raise enough money to pay for the lobbyists and bribery
required.
In what parallel universe does it make
sense to continue to say America has a free market capitalist
economy? How can we even imagine this is true? Isn't it clear our
nation's economy today is increasingly defined by deals made between
the most powerful special interests and our elected lawmakers for
their mutual benefits? The special interests get laws, regulations,
tax loopholes, etc. to tilt the game in their favor, and the
politicians. in return, receive financial support to fund their
campaigns. We the people...we get the bill...or our future citizens
will!
This is another example of why it
should also be clear to all Americans...we don't have a revenue
shortage...we have instead a government that is completely addicted
to recklessly spending our money for any group or cause that will
help keep our elected in power. Since the mid 1960's they have been
plundering entitlement trust funds. As these begin to dry up, they
started ratcheting up the scandalous borrowing that has left us $16
trillion in debt, and and still growing as we now borrow almost 40%
of all federal spending. When all else fails...they induce the Fed to
just print more money. Then today both sides simply stand back along
with their party loyalists and point the finger of blame at each
other. No attempts to collaborate to find the least/worst
solutions...just more blame!
Instead of worrying about corn, we
should be more concerned about our total "crop" of elected
in Washington today. It's the drought in their collective personal
integrity which has allowed the theft of our children's future. This
is what we should be most worried about. Unlike the weather, which we
can't change, we can easily use our ballot to change who we send to
Washington. While our favorite party's Kool-Aid, likely sweetened
with high fructose corn syrup, does taste good...are we hopelessly
addicted? A friend of mine suggested my repeated cry to fire all of
them reminded him how nature often burns an entire forest in order to
bring in fresh new growth to sustain itself. I think that's exactly
what we need to do with all of our elected...fire them and bring in
fresh blood. How could it possibly be worse?
These are my opinions. What do you
think?
Mike Tower
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