Tyler Coughlan, Chapter 8, Question #6

A part I found interesting in this chapter was the ethanol debate that was very popular in the 2008 election. When you look at the basics of ethanol (corn-based gasoline) it is good because it is taxed 5.4 cents less per gallon than pure gasoline. It burns easier then pure gasoline helping the environment, lowers our dependence on foreign oil, and gives corn farmers more work and money. But to be a good economists you must think of the long run not just the short run. This ethanol gas is even worse for our enviorment because it causes more air pollution specifically in the ozone layer and we lose 7.1 billion dollars in tax revenue. So in economics there are always positive and negative consequences for your actions and you have to remember to think the long run not just the short run.