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News Link • Government

Short Circuiting The Market

•, By Eric Peters
 One of the hallmarks of the Soviet System was top-down central planning – with “incentives” provided by the government. Natural market mechanisms were crippled. You got what the government decided you needed – at whatever price the government decided was appropriate.

The result – back then – was the Trabant and Lada.

Today, the result is electric lemons like the Tesla and Chevy Volt and Honda Fit EV.

People won’t buy them on the merits – because there aren’t any merits (not any that make economic sense, that is) so the government steps in with “incentives” – massive subsidies: $7,500 to the individual buyer and god-knows-how-much to the corporate cartel that made the thing. Anything rather than accept the market’s verdict that these vehicles are not economically viable.

And that’s as Soviet as it gets.

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