Wednesday, September 10, 2008
This cartoon is courtesy of Carlos Seco. Americans face choices on how to use their resources to meet their unlimited needs. These choices have a cost in what you give up. When America chooses to make ethanol, it gives up the opportunity to feed poor masses in Africa. Econ 101 would say that the benefits of ethanol outweigh the costs. I think it's easier to fill up with E87 when you don't have to answer for your choices. I was wondering if current consumption and production of gas is a reaction to a prior choice and is a sunk cost. In the cartoon, a gas hogging car is sucking up ethanol. Maybe when the car was purchased oil was at $36 a barrel. Now, the American is reacting to sunk costs by saying, "I have the car I might as well use it." There's an old Iowa saying that says, "Invent a better car rather than feed your horse better hay." Making a blend of 13% gas and 87% ethanol is like feeding the car better hay. For more cartoons that can be used on your website with permission, go to toonpool.com.