In a classic case of big government vs. the free market, we can examine how governments are stepping into the auto industry and seriously changing up the game. Government stepping in provides safety measures, but can also force manufacturers to undertake burdens. What happens when car companies abuse government privileges. Talking about this could be confusing and long-winded so let's talk about what has happened.
The car industry was largely run by the free market, which forced car makers to adopt new methods, technologies, designs to compete against their competitors.
Before the 70's, there wasn't much federal regulation in the US except for standard taxes that were also split with the consumers who bought the cars. However, after the oil crisis, the US government decided on a series of regulations that hit car manufacturers really hard. For the first time, cars had to downsize and use weak and underpowered engines. This really shook up the car industry
Now let's talk about when we would want a bigger government presence. Since the 70's import cars have skyrocketed and there's a reason half of the cars you see on the road today have a Honda, Toyota, BMW, Volkswagen, Hyundai, etc badge. Obviously, it makes sense that the free market allowed these companies to come in because American cars, well, sucked... Unfortunately, many American brands either consolidated or diminished. RIP Pontiac, Mercury, Plymouth, etc.
Now let's talk about another way government and cars have cros sed paths. The government has pushed for cars that run clean like hybrids and EVs. Many car makers are offering these cars as well as forced induction engines, like the new turbo engines from Honda. But the problem is there's just not enough push for these cars. The government is kind of stepping in where they provide tax incentives and other goodies to the consumer and the manufacturer.
The car industry was largely run by the free market, which forced car makers to adopt new methods, technologies, designs to compete against their competitors.
Before the 70's, there wasn't much federal regulation in the US except for standard taxes that were also split with the consumers who bought the cars. However, after the oil crisis, the US government decided on a series of regulations that hit car manufacturers really hard. For the first time, cars had to downsize and use weak and underpowered engines. This really shook up the car industry
Now let's talk about when we would want a bigger government presence. Since the 70's import cars have skyrocketed and there's a reason half of the cars you see on the road today have a Honda, Toyota, BMW, Volkswagen, Hyundai, etc badge. Obviously, it makes sense that the free market allowed these companies to come in because American cars, well, sucked... Unfortunately, many American brands either consolidated or diminished. RIP Pontiac, Mercury, Plymouth, etc.
Now let's talk about another way government and cars have cros sed paths. The government has pushed for cars that run clean like hybrids and EVs. Many car makers are offering these cars as well as forced induction engines, like the new turbo engines from Honda. But the problem is there's just not enough push for these cars. The government is kind of stepping in where they provide tax incentives and other goodies to the consumer and the manufacturer.
Comments
Post a Comment