“Less than 75 years after it officially began, the contest between capitalism and socialism is over: capitalism has won… Capitalism organizes the material affairs of humankind more satisfactorily than socialism.”

– Robert Heilbroner, “The Triumph of Capitalism,” The New Yorker, January 23, 1989, p. 98.

A major event in the history of political economy thought occurred in 1989 when socialist economics writer Robert Heilbroner (1919–2005) renounced his belief in central planning in the pages of the New Yorker. For anti-market liberals, this made it official: socialism was out of the mainstream. Socialism could not plan a modern economy and was an open sesame for totalitarianism. Hayek said as much in his 1944 classic, The Road to Serfdom. A trusted voice on the Left confirmed it 45 years later.…

“When the history of the global warming scare comes to be written, a chapter should be devoted to the way the message had to be altered to keep the show on the road. Global warming became climate change so as to be able to take the blame for cold spells and wet seasons as well as hot days. Then, to keep its options open, the movement began to talk about ‘extreme weather’.”

– Matt Ridley, “Nobody Even Calls the Weather Average,” July 9, 2013.

Last summer, global warming was blamed for firefighter deaths, more thunderstorms, and poor lobster catches.

Last fall and so far this winter, the list has grown to include:

• Trillions of dollars of storm-surge flooding
• Bigger snowfalls
• Future Winter Olympics cancellations
• Drying Great Lakes
• Increased severe U.S.

“The President has bragged that ‘we produce more oil at home than we have in 15 years.’ Indeed domestic production rose from 5.6 to 6.4 million daily barrels in 2012 from the year before (12.5%). However, production from federal onshore and offshore areas has fallen significantly under his watch – and 96% of the above production increase was on state and private lands.”

President Obama insists he is determined to create jobs in America. He recently announced the creation of “promise zones” for five communities around the nation and a “manufacturing institute” aimed at fostering more high-paying jobs in energy efficiency.

He’s also said he has “a pen and a phone” to “sign executive orders and take executive actions that move the ball,” where Congress has failed to implement policies he believes are needed.…

[Editor note: This post is taken from a new policy brief, The Latest Unanticipated Consequence in the Ethanol Fiasco, released by the Mosbacher Institute for Trade, Economics, and Public Policy at Texas A&M University. Professor Griffin, who directs the Mosbacher Institute, is also author of U.S. Ethanol Policy: Time to Reconsider? in The Energy Journal (Fall 2013).]

Executive Summary

1. The 2007 mandates to steadily increase ethanol content in gasoline have hit yet another roadblock.
2. Falling — instead of rising — gasoline consumption means that fuel blenders can no longer absorb the mandated ethanol quantities and still produce gasoline with no more than 10% ethanol content.
3. Auto manufacturers strongly object to raising the ethanol content above 10%.
4. Now, the EPA has proposed a one-time, one year waiver relaxing the 2014 mandate.