As the midterms draw near, President Biden is getting slammed over his ineffectual response to the worst inflation in forty years.
The president’s newest half-baked plan to bring gasoline prices down with higher ethanol blends could backfire by raising the price of food, the Daily Caller reported.
Biden’s plan to drive up food prices
The Biden administration is suspending an environmental rule that bans gas with 15 percent ethanol, or E15, in the summer. Ethanol is derived from corn.
The president claims that his plan will save consumers, who are dealing with the most punishing gas prices in the nation’s history, 10 cents a gallon. But the move could exacerbate food inflation by driving up demand for corn, which meat producers need to feed their livestock.
The National Chicken Council (NCC) said that “consumers lose” under Biden’s plan. Corn is the biggest cost for chicken producers, the group’s president, Mike Brown, explained.
“Further and artificial demand for corn created by this administration will likely increase the cost of corn and all food products dependent on corn and corn oil inputs,” he said. “What it does at the gas pump we shall see … but at what expense to consumers in the grocery store who are already dealing with the highest inflation in 40 years.”
“At the end of the day – ethanol manufacturers win and consumers lose,” Brown added.
Biden flailing for a solution
Not everyone is against Biden’s decision. Ethanol producers and corn growers who stand to benefit from the increased demand say the warnings of food inflation are overblown.
Troy Bredenkamp, of the ethanol advocacy group the Renewable Fuels Association, said growers only need to produce a “minuscule” amount of corn to boost E15 production.
Inflation surged by 8.5 percent year-over-year in March, with the price of food leaping 8.8 percent. The surge is partly but not entirely driven by the conflict in Ukraine.
Biden has desperately tried to limit widely anticipated midterm defeats for his party by blaming Russia for the lousy economy, using the phrase “Putin’s price hike” over and over again.
Republicans have been hammering President Biden for limiting domestic oil production, but it appears Biden is determined to keep putting band-aids on the problem.