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	<title>Comments on: Problems With Ethanol Subsidies and Mandates</title>
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	<link>http://www.showmedaily.org/2010/03/problems-with-ethanol-subsidies.html</link>
	<description>Advancing liberty with responsibility by promoting market solutions for Missouri public policy</description>
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		<title>By: Christine Harbin</title>
		<link>http://www.showmedaily.org/2010/03/problems-with-ethanol-subsidies.html/comment-page-1#comment-5834</link>
		<dc:creator>Christine Harbin</dc:creator>
		<pubDate>Mon, 22 Mar 2010 17:09:26 +0000</pubDate>
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		<description>It seems to me that whenever an industry calls itself an infant industry, it&#039;s merely rent-seeking. In &lt;a href=&quot;http://www.hoover.org/publications/digest/3550727.html&quot; rel=&quot;nofollow&quot;&gt;an excerpt from &lt;em&gt;Free to Choose: A Personal Statement&lt;/em&gt;&lt;/a&gt;, Milton and Rose Friedman write:
&lt;blockquote&gt;The infant industry argument is a smoke screen. The so-called infants never grow up. Once imposed, tariffs are seldom eliminated. Moreover, the argument is seldom used on behalf of true unborn infants that might conceivably be born and survive if given temporary protection; they have no spokesmen. It is used to justify tariffs for rather aged infants that can mount political pressure.&lt;/blockquote&gt;
Protecting so-called &quot;infant industries&quot; hurts consumers because it:

* restricts new suppliers from entering the market (which restricts supply and increases the price to the consumer)
* removes the incentive for existing suppliers to innovate (which decreases product quality)
* restricts their access to consume non-protected competitive products (in this case, non-ethanol alternative fuels)
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		<content:encoded><![CDATA[<p>It seems to me that whenever an industry calls itself an infant industry, it&#8217;s merely rent-seeking. In <a href="http://www.hoover.org/publications/digest/3550727.html" rel="nofollow">an excerpt from <em>Free to Choose: A Personal Statement</em></a>, Milton and Rose Friedman write:</p>
<blockquote><p>The infant industry argument is a smoke screen. The so-called infants never grow up. Once imposed, tariffs are seldom eliminated. Moreover, the argument is seldom used on behalf of true unborn infants that might conceivably be born and survive if given temporary protection; they have no spokesmen. It is used to justify tariffs for rather aged infants that can mount political pressure.</p></blockquote>
<p>Protecting so-called &#8220;infant industries&#8221; hurts consumers because it:</p>
<p>* restricts new suppliers from entering the market (which restricts supply and increases the price to the consumer)<br />
* removes the incentive for existing suppliers to innovate (which decreases product quality)<br />
* restricts their access to consume non-protected competitive products (in this case, non-ethanol alternative fuels)</p>
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		<title>By: David Stokes</title>
		<link>http://www.showmedaily.org/2010/03/problems-with-ethanol-subsidies.html/comment-page-1#comment-5833</link>
		<dc:creator>David Stokes</dc:creator>
		<pubDate>Mon, 22 Mar 2010 16:24:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.showmedaily.org/?p=15771#comment-5833</guid>
		<description>There is quite possibly no industry in America that is as dependent on government support as ethanol. The entire industry is a sad joke.</description>
		<content:encoded><![CDATA[<p>There is quite possibly no industry in America that is as dependent on government support as ethanol. The entire industry is a sad joke.</p>
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