• 5 Posts
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Joined 1 year ago
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Cake day: June 16th, 2023

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  • Here’s the story as I understand it. US automakers want to make expensive premium cars because those sell for high margins. The big breakthrough in the EV market over the past few years has been China EV makers figuring out how to make cheap and “good-enough” EVs, which are catching on in many places across the world. This is clearly the direction in which the market has to move (whether via Chinese or non-Chinese automakers) to spur mass EV adoption. In the US, however, the established automakers can rely on protectionism to block imports, this keeping the US market limited to big expensive cars that remain using ICEs.


  • These complaints about EVs being too expensive are way out of date, now that China is pumping out hordes of cheap EVs that consumers like.

    Even if the US doesn’t want to let in Chinese auto imports, the question remains: why are Chinese automakers able to bring down prices, but not US automakers? You can point to Chinese government subsidies, but the US also does industrial policy these days. One of Biden’s favourite talking points is how much money his government is putting into supporting US green manufacturing through the IRA.




  • Hardly the only two countries. In the US it’s only masked by immigrants. Fertility is even coming down in most parts of the third world.

    It’s mainly attributable to women’s improved education, career prospects, and access to contraception, plus declining infant mortality. Every single one of these factors is a good thing, but the combination of them will lead to a global demographic crunch over the next century.