339
submitted 7 months ago by boem@lemmy.world to c/technology@lemmy.world
you are viewing a single comment's thread
view the rest of the comments
[-] miridius@lemmy.world 12 points 7 months ago

The Chinese ones are cheap because they're being subsidised by the Chinese govt to be sold that cheaply overseas as a deliberate economic attack tho

[-] hark@lemmy.world 3 points 7 months ago

Meanwhile the US doesn't subsidize (or even bail out) its too-big-to-fail auto companies, right? If you consider affordable products a deliberate economic attack, what do you call the extreme price gouging that the American auto companies are carrying out?

[-] UnderpantsWeevil@lemmy.world -2 points 7 months ago

The Chinese state isn't selling cars under the cost of construction. The subsidies come in the form of cheap (increasingly nuclear) energy, publicly funded STEM/trade schools, and public health care. These socialized benefits reduce the real cost of living in China and grow the domestic consumer car market, along with lowering the per-unit production costs.

American car companies have long been hobbled by the obscene cost of employment benefits - high salaries to cover housing costs and student debts, high private insurance premiums, high administration overhead, the constant need to fund stock buybacks in order to keep the value of their stock-incentives up. The deal with the devil they cut with Truman - to make medical insurance a private tax write-off rather than a public good - combined with the enormous Reagan Era tax cuts and rapidly metasticizing private health industry administrative overhead, drives up the cost of each vehicle by thousands of dollars.

This sucks for the car companies, but is fucking awesome for the FIRE sector. And since 30% of the US GDP is tied up in financing, insurance, and real estate growth, our private automotive industry is effectively forced to subsidize their profits. That's what makes American cars so expensive relative to their East Asian peers.

this post was submitted on 10 May 2024
339 points (96.7% liked)

Technology

60087 readers
2458 users here now

This is a most excellent place for technology news and articles.


Our Rules


  1. Follow the lemmy.world rules.
  2. Only tech related content.
  3. Be excellent to each another!
  4. Mod approved content bots can post up to 10 articles per day.
  5. Threads asking for personal tech support may be deleted.
  6. Politics threads may be removed.
  7. No memes allowed as posts, OK to post as comments.
  8. Only approved bots from the list below, to ask if your bot can be added please contact us.
  9. Check for duplicates before posting, duplicates may be removed

Approved Bots


founded 2 years ago
MODERATORS