CEI Daily Update
Issues in the News
1. ENERGY
Increased demand for ethanol made from grain forces global food prices to skyrocket, placing a heavy burden on developing nations. CEI Expert Available to Comment: Energy Policy Analyst William Yeatman on the predictable results of increased use of biofuels:“CEI has long warned that the fuel-from-food craze threatens the world’s poorest citizens by making it harder for them to feed themselves. If you are unacquainted with the economics of ethanol and global food stocks, the causal chain is simple: more food for fuel means less for food, which increases the price of food. Unfortunately, we were right. Javier Blas, in the Financial Times, reports that global food consumption will drop this year—despite a growing population—due to record food prices.”
2. BUSINESS
Federal Reserve Chairman Ben Bernanke warns of a slowing economy.CEI Expert Available to Comment: Center for Entrepreneurship Director John Berlau on why it isn’t all bad news:
“Commerce Department figures released yesterday showed stronger than expected growth in retail sales for January. There has also been some surprisingly strong 4th quarter earnings reports from companies such as IBM. The Federal Reserve’s own ‘Beige Book’ of industry data notes that in some sectors such as hotels, health care, consulting and engineering, demand has actually been ‘robust.’”
3 . HEALTH
Condominium owners vote to ban smoking, even in private residences.CEI Expert Available to Comment: Special Projects Counsel Hans Bader on how even smoking bans in commercial locations can backfire:
“Ordinances that ban smoking in commercial establishments increase drunk driving fatalities, apparently by encouraging smokers who want to go out drinking to travel further in search of a hangout in which smoking is still permitted, rather than going to their local bar.”Blog feature: For more news and analysis, updated throughout the day, visit CEI’s blog, Open Market.
FOR MORE INFORMATIONTo contact a CEI expert for comment or interviews, please call the CEI communications department at 202-331-2273 or email to [email protected].