Wednesday, March 19, 2014
So-Called Capitalists and the Free Market
As a recent NPR "Planet Money" podcast notes ("Why Buying A Car Is So Awful"), these laws were originally put into place in order to protect local dealers from the predatory practices of the big three automobile makers: General Motors, Ford, and Chrysler. But times have changed, and now these laws essentially protect local monopolies controlled by dealers that add, on average, about $1,800 to every car that we buy. Thus, it's quite understandable why dealers are reluctant to alter the status quo and let Telsa in. It's also an example of how some of the biggest supporters of the free market aren't when it threatens their bottom line.