Electric cars have between 5k and 10k fewer parts than non-electric counterparts, so why so much?
It’s a less complicated engineering design so why so much more than a internal combustion engine?
Subsidies?!!
Replies to: Electric cars have between 5k and 10k fewer parts than non-electric counterparts, so why so much?
Subsidies are "Incentives" for moving the country in a certain direction...just like FF subsidies...
They (FFs) have done their job, it's time to move on with other heat and power sources (Nuclear, Solar, Wind) in order to a) save FFs for their unique benefits (e.g. Plastics), and b) avoid rapidly shocking our environment to the detriment of humankind.
Yes, moving in a crony capitalism direction! Playing subsidies, either corporate's or government's
with free market is the root of crony capitalism. It twists free market, artificially changes demand/supply pattern and sends wrong price signal.
Your concern for interference in the free market is not unfounded, but, there are situations
that make subsidies beneficial to the national interest...in this case the issue is the need for a rapid shift away from burning fossil fuels...and from preserving them.
I've attached a link on this issue from 'Investopedia', and here is an excerpt of the key points...
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KEY TAKEAWAYS
>Subsidies are payments, tax breaks, or other forms of economic support given by governments to certain industries or economic sectors.
>The goal of subsidies is to aid or support what are deemed to be key parts of the economy or national infrastructure.
>While subsidies may have a direct positive impact on the particular industry or companies involved, economists argue that subsidies work against free trade and create market inefficiencies.
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Given the global acceptance of Climate Change as a threat to all nations, it is deemed essential that we shift our energy strategy...and attendant infrastructure away from fossil fuels...and waiting for a widely disparate market to coalesce around a common solution is IMO foolhardy...therefore, if falls upon government to provide the necessary 'incentives' that will more quickly effect those changes...simple as that...it's URGENT...whether you like it or not, 193+ nations agree.
Link: https://www.investopedia.com/ask/answers/060215/how-do-government-subsidies-help-industry.asp
Yes, but like “subsidies” in the form of student loans, they just increase price.
If the net effect of the subsidy is to make the item unaffordable to average people, seems counter producthve and intended to benefit those who can already afford the car. Instead provide the subsidy to the manufacturer.
Occasionally, "Time is of the Essence"...here's an example from the attached article...
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Nigro explained that the lead time for EV manufacturers to extract minerals and build batteries in various countries can take several years.
But this is a case of the government trying to accomplish three things at once, Gleckman said.
“It’s trying to encourage people to buy EVs, it is limiting the benefits to t eople making less than a certain amount of money — it’s trying to be progressive in the design of the tax code,” he said. “And it’s also trying to impose a ‘Made in America’ standard on the cars.”
That last piece — ensuring that the sourcing of materials for these vehicles is sound, sustainable and beneficial to the nation’s economy and security — is critically important, according to Nigro.
“The facets of the bill that are aimed at building out that security, building that domestic capacity, are going to be beneficial to the industry in the long term,” he said. “Really it’s a question of timing, and whethet or not all the stars are going to align for the industry to be able to deliver product in the time frame written into this legislation.”
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It would to nice to treat CC as a "Laissez Faire" issue to be dealt with whenever the "Market" gets its act together...but that's totally inappropriate, so a "Stimulus" is what's called for...unless you're in the CC denial camp.
Link: https://www.pbs.org/newshour/nation/everything-you-need-to-know-about-the-new-electric-vehicle-tax-credit
no subsidies for anyone or anything
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"Subsidies" take many forms...(see link)...do you still object to them?...e.g. Agriculture
subsidies that support price stabilization and make things better for the farmers and consumers...what would be your solution and logical outcome in that arena?
Link: https://www.masterclass.com/articles/economics-101-what-are-subsidies
Agriculture subsidues hah, how's that working out for legacy family owned farms?
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"Technology"..."Globalization"...and "Trade Wars"...that's what has driven Legacy farmers to near
extinction...not subsidies...take a look at the linked article...and if you have a TIME magazine account, check out their lengthy special article on this issue for even greater detail.
https://time.com/5736789/small-american-farmers-debt-crisis-extinction/
Family Legacy farms that have gone "Organic" are thriving, but it takes $$ to make the transition apparently, so it would be good government policy to "Subsidize" those operations...don't you think?
Link: https://thepremierdaily.com/independent-farming-close-to-extinction/
yes
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govt should never get in the way of marketplace dynamics.
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