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points by paxy 11 hours ago | 0 comments

People make a fuss about China unfairly subsidizing its auto industry but this is exactly how subsidies should work.

USA meanwhile has spent over $120 billion to prop up its own auto companies over the last two decades and has nothing to show for it except some very rich executives, and that is considered rugged capitalism at work.

[–] SpicyLemonZest 10 hours ago

Subsidies to keep a failing industry alive are, reasonably, seen as a different phenomenon than subsidies to help a successful industry beat its international competitors. If Americans want to toss a bunch of money into a hole to ensure people can keep buying F-150s as commuter cars, that's just not a big problem for anyone else.

[–] scottyah 11 hours ago

Don't forget about all the High-Seniority union members who got paid very well to stall progress so the next generation has no ability to compete.

[–] mmooss 11 hours ago

Could you provide evidence of senior union members making anything close to what executives make?

[–] scottyah 10 hours ago

Probably not, can you? I never asserted that so why would you ask for evidence of it?

[–] linuxftw 11 hours ago

Disagree. The US manufacturers doubled down on over priced cars that nobody can afford, that's what the money went towards.

[–] missedthecue 9 hours ago

This is right and it's wrong. Every inexpensive car in America utterly fails to sell. Dodge tried with the Dodge Dart 2 in 2013 and it lasted 3 years before they ended the model for lack of sales. Mitsubishi has tried for years to sell to the lower end market, and has ended up cutting every model from their lineup except the SUVs and larger vehicles. The big 3 completely stopped making sedans. The best selling car in America right now? The Ford F-150. Starting at $40k, 20mpg combined.

yes, the american automaker doubled down on expensive cars, and it's because the american consumer demanded it and outright refused to buy anything else.