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Sunday, September 9, 2012

More proof of corruption in DC


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

Please visit:  Citizens Against Politics As Usual

Contact Me:  Mike Tower

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