Saturday, March 03, 2012

Chevy Volt

"GM to Idle Volt Output as Sales Slow" should not surprise anyone.  But it seemingly does.  Congress and much of the public (as well as a famously "cerebral" President as well as a "dream team" of economists) had put common sense on hold through the current bout of industrial policy.  Combine promises of "stimulus" and "jobs" and "green" and that's what they do. 

In the real world, bribe buyers to the tune of $7,500 to buy a package they do not want and most take a pass.  It takes a market to discover the sweet spot of price and quality that works for producers as well as consumers.  This is much too complex to accomplish via politics.  And, as if that were not enough, the political way is subject to politicization (rent-seeking).

James Q. Wilson, whose passing we mourn, had a lot to say about the latter.