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Cake day: June 18th, 2023

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  • „Free market“? Speaking of hypocrisy. Chinese car brands are so heavily subsidized they probably cost the Chinese economy more than they make selling them at the moment. China is clearly trying to drown the global market with cheap cars so they can ramp up prices immensely once they have killed the competition and have become a monopoly. China hasn‘t been the extreme low income country to produce super cheaply for a long time and they couldn‘t produce cars this cheap in a free market situation.

    Many countries and the EU have measures against such practices because state run operations with the sole purpose to destroy an industry (which this is) undermine the very idea of the free market or even trade relationships.

    Alternatively we could start subsiding local car makers and play the same little game China is playing but more cars is honestly the last thing we need right now. Tariffs are a much smoother option to deal with this even when they have a bad rep.

    Ideally we use that generated money from tariffs to subsidize public transport so we don‘t get cheaper cars but cheaper alternatives but that‘s still just a dream I‘m afraid.

    Whatever the case, one should look at super cheap cars and what that means in the long run more critically.