2AC Extension Harms – Economy: A/t #3 “No Market” [1/2] 135
1) U.S. policies will drive up demand for sugarcane ethanol.
IPS, 13
[Inter Press Service; “Brazilian Ethanol in the Slow Lane to Global Market Brazilian Ethanol in the Slow Lane to Global Market,” 2/17, http://globalgeopolitics.net/wordpress/2013/02/17/brazilian-ethanol-in-the-slow-lane-to-global-market/]
As U.S. consumption is nearing that limit, the bulk of the increase towards the 2022 target of 132.5 billion will have to come from cellulosic ethanol – a biofuel from wood, grasses or the inedible parts of plants, which is new and still too costly to produce- and from "advanced" biofuels. "Advanced" or "second generation" biofuels are those produced by sustainable feedstock, which are defined by availability of the feedstock, greenhouse gas (GHG) emission levels and biodiversity and land use impact. The United States Environmental Protection Agency designated sugarcane ethanol as an advanced biofuel because it lowers GHG emissions by more than 50 percent as compared to gasoline, taking into account the full lifecycle of production and consumption, including the use of land to grow the crop. This development will boost demand for ethanol produced by Brazil and other sugarcane growing countries, bringing it up to 15.14 million litres by 2022.
2) Cuba has no domestic need for ethanol fuel, so all of it could be exported to the U.S. for purchase.
CONASON, 8
[Joe, writes a weekly column for Salon and the New York Observer, “One more good reason to lift the embargo on Cuba,” 7/18, http://www.salon.com/opinion/conason/2008/07/18/cuba/]
Now there is at least one more incentive to change course. With its huge potential for producing clean, renewable, sugar-based ethanol, Cuba represents a significant source of energy that will remain unavailable to American consumers unless we undo the embargo. Agricultural experts have estimated that Cuba could eventually provide more than 3 billion gallons of fuel annually, perhaps even more when new technologies for extracting energy from sugar cane waste (known as “bagasse”) come online — placing the island third in world ethanol production, behind the U.S. and Brazil. Given the relatively small demand for auto fuel in Cuba, nearly all of that ethanol would be available for export to its nearest neighbor.
2AC Extension Harms – Economy: A/t #3 “No Market” [2/2] 136
3) Expanding access to exports will solve Cuban economic development.
ROBERTS AND WALSER, 13
[James, Research Fellow for Economic Freedom and Growth in the Center for International Trade and Economics at The Heritage Foundation; and Ray, PhD., Senior Policy Analyst for Latin America at Heritage Foundation; “The Hagel, Kerry, and Brennan Senate Confirmation Hearings: U.S. Policy for the Western Hemisphere,” 1/18, http://www.heritage.org/research/reports/2013/01/kerry-hagel-and-brennan-senate-confirmation-hearings-us-policy-for-the-western-hemisphere]
In general, the Obama Administration should encourage Latin American governments to continue to liberalize their economies and dismantle expensive bureaucracies and habits of over-regulation, as well as seek to attract more job-creating private-sector domestic and foreign investment. The State Department should also promote stronger protections for property rights and urge strenuous, ongoing efforts to fight against the age-old problem of official corruption. Private entrepreneurs must be able to make new investments in their businesses without fear of government confiscation. Inefficient, costly, and crony-corporatist-promoting state-owned enterprises (especially in Argentina, where President Cristina Fernández de Kirchner’s retrograde policies are harming that country) should be privatized in as fair and transparent a manner as possible. Greater private sector–fueled economic growth and job creation will help those countries to expand the middle class and thus stabilize their democracies. With its National Export Initiative and the belated passage and implementation of free trade agreements with Colombia and Panama, the Obama Administration has advanced our trade agenda. It should move swiftly to complete the Trans-Pacific Partnership to increase growth and job creation for Americans without demanding unrealistically stringent labor rights and environmental standards. It can also further harmonize trade among the 11 U.S. FTA partners and with Brazil, which alone accounts for more than half of South America’s GDP and desires access to the U.S. market. Efforts must be made to leverage mutually advantageous deals with bilateral tax treaties and market access agreements.
2AC Extension Harms – Economy: A/t #4 “Economy is Resilient” 137
1) Economic collapse causes increased political pressure for cuts in defense spending that will cause global nuclear war in every region. Even if the economy eventually recovers, our impact is about the political consequences of the initial severe downturn. Extend our FRIEDBURG AND SCHOENFELD evidence.
2) The neg evidence is not credible. It quotes an employee of the Federal Reserve who has an incentive to say the economy is resilient because it makes him look better at his job. There is no warrant or historical data to support this claim.
3) Oil price fluctuations make every product more expensive by increasing total industry costs and stunting growths. This causes spiraling loan failures and economic collapse.
GAGAN, 10
[John, Major in US Army; “THE UNITED STATES’ STRATEGIC INSECURITY-THE OIL NEXUS,” http://www.dtic.mil/cgi-bin/GetTRDoc?AD=ADA531222]
High imported oil costs were not the single source of the global recession, but they certainly may have contributed to it. The International Energy Agency suggests the rapid increase in price of crude oil from 2003 to 2008 played an important, “albeit, secondary” role in the recession. High oil prices stunt economic growth. The doubling of oil prices from 2003 to 2005 lowered global economic output by 1.5 percent or $750 billion (Rogoff 2005). Richard Heinberg makes an interesting argument for the effects of oil dependency on the economy through physical and financial terms. His premise maintains that the U.S. financial system was built upon constant growth derived from ample available energy sources (oil) with the assumption that growth was “inevitable and desirable.” A key concept and component of the American financial institution is based on compound interest, where money is created from loans and represents debt. The money to repay loans is generated from production growth and productivity. If production growth and productivity are stifled due to exorbitant prices of energy (oil), fewer goods will be produced, less consumption of those goods will occur, and loans cannot be re-paid. In this case, new loans must be taken out to re-pay old loans. If there are more loans out than the rate of economic production or growth and consumption, inflation will occur. More businesses taking out fewer loans due to lower demand could initiate a vicious economic tailspin resulting in an economic implosion all due to a net energy decline.
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