Friday, May 17, 2013

Republicans Abandoning Capitalism

Tesla is an innovative small business.  They are creating electrical cars, something the big automakers repeatedly claimed was unprofitable and not worth their time.

Part of how they do it is by not paying dealers.  They sell direct to the customer.  You want a Tesla, you email/call them - or go to a Tesla owned show room.. No need to go through a middleman.

The problem is a whole bunch of car dealers don't like this.   They are afraid for their jobs.

Now a normal capable person, when faced with this dilemma, proceeds to up their level of service and advertise.  They sell cars from multiple companies and go out of their way to help you compare products and make the right decision.

If you offer a service that people find valuable, they will willing come in and buy direct from you, as opposed to online.

It is how Barnes and Nobles continues to operate despite Amazon.  They offer things that Amazon can't offer - among other things, instant free service for their e-reader, free WiFi for their e-reader, instant service (as opposed to waiting a week).

But the dealers in North Carolina are NOT reasonable. They don't want to offer things at a reasonable price, they want to overcharge you for what they offer.

In order to do that, they need exclusive licenses from the car manufacturers.  Which they have from most manufacturers.

But not Tesla.  Tesla won't play their game.

So the dealers in North Carolina talked to their state congressmen.  They bribed, oh, excuse me, contributed to campaign finances, of the Republicans running the state house.  Whereupon, those same Republicans have passed a law banning direct car sales to consumers, claiming it is 'unfair'.

It's not the only Republican controlled state to do so- Texas won't let Tesla owned 'showrooms' offer test drives, sell the vehicles directly - or even quote a price.  Tesla is already suing the state of Texas over this law - and attempting to have it overturned by the Texas State Senate.

Why exactly it is unfair for car companies to directly sell to consumers, while it is not unfair for Apple, Amazon, and a hundred other internet based businesses is not clear.
All I know is that the GOP in North Carolina has sold their principles out.

They are attempting to kill a new technology company that can someday save the American Car Industry, all to keep alive a dying business model.

No, the GOP has a whole is not abandoning Capitalism.  But no one is calling these state level Republicans "RINO'S"

Because the GOP as a whole considers capitalism to be a secondary issue, less important than getting themselves elected.

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