Texas governor Rick Perry had a decent Op-Ed in today's Wall Street Journal on the damage corn ethanol is doing to food prices. When the Republican governor of Texas and liberal Paul Krugman agree that a policy is bad, you can be sure there's something wrong with our government.
As Fred Smith mentioned at Cato's Milton Friedman Prize reception, biofuels do have the potential to solve our energy problems. Start-ups across the country, in addition to energy giants like Chevron and RoyalDutchShell, are risking their own time and money on research because they believe algae fuel has the potential to be commercially viable--without sending food prices through the roof. Also, note the epic shortcomings of corn ethanol when compared to Brazilian sugarcane ethanol.
Instead of pouring money into failing plans, wouldn't it be better if the government got out of the way and let human ingenuity and the free market solve our problems?