Iowa senators and ethanol industry want piece of auto bailout: Is Iowa the new Detroit?
With the automakers on the ropes, and the government getting ready to write a big check, and possibly attach some strings to it, the ethanol industry wants to make sure that they are at the end of those strings. Of course, merely trying to attach efficiency requirements to any bailout of Detroit is not inherently wrong. In fact, if we do bailout the automakers, there should absolutely be a strict commitment that they must make their cars significantly more fuel efficient going forward. However, with that said, what the ethanol industry and their local senators are trying to do is just more of the same behavior that got the auto industry into the situation they face today. That is, government policy being influenced by self-interested commercial industry groups that are supported by hometown politicians. For years, Detroit successfully lobbied the federal government to make sure that higher fuel efficiency standards were not imposed, thereby allowing them to continue their business plan
