Unrest in Egypt: More Fallout from Ethanol Subsidies
Wheat production is down in the world’s breadbaskets, like the United States, as farmland shifts away from wheat to ethanol production. Ethanol production has increased because of government ethanol mandates and costly ethanol subsidies. In Egypt, a major wheat importer, the fall in worldwide wheat production has triggered bread shortages and unrest as poor people find it difficult to get enough to eat. The unrest is strengthening support for Islamic extremists opposed to Egypt’s relatively pro-American government.
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