12-03-2008, 05:01 PM
karsen wrote:
[quote=JoeH]
Problem is karsen, your entire argument falls flat on its face because there is no "upstart American automobile company" anywhere in the wings looking to take over a piece of the market.
There are some small American automakers, Tesla for instance. I'm sure they'd like a bigger piece of the market. That's not my point though, my scenario was obviously fictional, the point being it stifles competition and innovation.
JoeH wrote: Given the startup costs to enter in this day and age where you have certain technologies required to even have a sellable vehicle, it is unlikely there will be a "new" company able to enter the market.
If you think it's unlikely now, wait until a potential startup has to compete against a nationalized mega corporation.
Your scenario was obviously fictional, it is also completely not based in any economic reality that exists. It would stifle "competition and innovation" no more than the current and past bad oligopolistic practices of the US big 3. As for Tesla, it is a niche maker, with a niche product. At their best, they might do a fraction of a percent of the market and maybe produce as many cars as Honda produced Insights the first year of production. Tesla in the end is mostly repackaging existing technology into a vehicle.
As for a nationalized "mega" corporation, the difference between almost no chance and next to no chance is so small as to be no difference.