Does the U.S. Really Operate as a Freemarket System?
Imagine inventing a product or service only to have it removed or reduced in the marketplace by regulations and/or the government. How would you feel?
That seems to be the trend the past couple of weeks in the transportation/automotive industry. A couple of weeks ago, Tesla faced backlash in New Jersey, and more recently, in New York. Now Ohio is planning a proposal to block Tesla from setting up direct-sales stores.
The reason for this hate against Tesla according to these states? Telsa undercuts traditional auto dealerships. What?!
This really goes at the core of a free market system. Going back to the beginning of this post, imagine creating a new product. You are able to make this product to meet customer’s demands in your own place (house, rented building, etc.) and you are making a ton of money. You are making so much money that you are a threat to other similar companies.
Now you get a notice that you are not allowed to sell your product directly. You need to instead have a middleman sell it because that is what is “fair”.
It is ridiculous.
On the other side of the U.S., there is another travesty in the making. Seattle City Council has voted against companies like Lyft, and Sidecar on how many cars they can have on the road. These companies provide customers an alternative to taxi’s with ride-sharing services. Some of them implement smartphone apps making the whole business more streamlined.
The taxi business doesn’t like this and now has helped limit the number of cars like Sidecar can have on the road at any one time.
The free market system of the U.S. at its finest.