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The withering dream of a cheap American electric car

(www.wsj.com)
152 points voisin | 1 comments | 17 Nov 24 23:52 UTC | HN request time: 0s | source
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latentcall ◴[18 Nov 24 16:08 UTC] No.42173727[source]▶
I would love a 10-15K BYD. I was told recently desiring a BYD is un-American when I can spend 3 times the price on a Tesla. No thanks! I’ll hold out for something truly cheap. Cars in America are insanely priced.
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rootusrootus ◴[18 Nov 24 16:20 UTC] No.42173877[source]▶
Protecting local manufacturers from cheap offshore labor is rational, especially if the offshore products are being subsidized specifically to undermine incumbents and put them out of business. I get that individual consumers want the cheapest trinket they can find, but the gov't has to be more strategic. And every country does this, including the one that would be the source of these trinkets.
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AnotherGoodName ◴[18 Nov 24 16:35 UTC] No.42174055[source]▶
It leads to market separation. No one outside the US will buy US made when they have cheaper Chinese cars as an option. And the US can’t force external competitiveness to emerge with those subsidies in place. Not to mention internally having to buy more expensive transport has knock on effects to the entire economy.
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MR4D ◴[18 Nov 24 16:46 UTC] No.42174155{3}[source]▶
In a way, that doesn’t matter for the US. Consider that the US has an enormous trade deficit. If the US brought to even, then all those exporting countries with large surpluses would be in bad shape.

This is a complex problem, and when the US is the importer from the world, the mere decision to stop importing would send shockwaves through trade everywhere.

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1. lossolo ◴[18 Nov 24 18:20 UTC] No.42175262{4}[source]▶
If you are running $2 trillion deficits, then of course you will have trade deficits. You are an importer of goods and an exporter of USD. The problem will arise when your debt becomes unsustainable and alternatives to the USD emerge for settling international trade. This would lead to a decline in demand for USD, a drop in demand for U.S. debt, and reduced capital inflow into the U.S. stock market (end of recycling), essentially leading to a collapse of the current U.S. economic model.