Collection: Charlie Munger - #243 | Why Running Cars on Corn is One of The Dumbest Ideas?
[Transcript]
AUDIENCE MEMBER
Charlie, what are your current views on the costs and benefits of ethanol production in this country?
CHARLIE MUNGER
Well, you know, even [Sen. John] McCain has had a counter revelation lately. He’s decided that ethanol is wonderful now that he realizes that’s the way they think in Iowa. I’m somewhat in his position here, but I won’t allow that to stop me.
I think the idea of running automobiles on corn is one of the dumbest ideas that has gotten widespread acceptance that I have ever seen. But in a government with a lot of political pressures, weird decisions get made. But that has to be about as crazy a decision as was ever made.
You want a social safety net under people, and the most basic safety net of all is food. And you’re going to raise the cost of food so you can run these automobiles around?
And you use up just about as much hydrocarbons making the corn as you get out of the ethanol. And you don’t count in the cost of the ethanol, the cost of the topsoil that goes away forever when you — it’s a —
I love Nebraska. I’m a Nebraskan to my core. But this was not my home state’s finest moment.
WARREN BUFFETT
We’re going to try to smuggle him out of town tonight.
(Source: https://buffett.cnbc.com/2007-berkshire-hathaway-annual-meeting/)
~ Please visit the site above for full video of Berkshire Hathaway Annual Meeting.
[YAPSS Takeaway]
Don't just look at the surface. Think deeper in a capitalist perspective. Who benefit from converting corn to ethanol?
