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I knew what you meant to say and that was cute to me (assuming that is something is true in US, it must be universal), but let's not dwell on that. I meant to be funny, but I probably wasn't. The fact stays that United States is a world with BY FAR cheapest cars and energy, not just in terms of currency prices, but in terms of actual income percentage. It is also true about other items, such as certain electronics (iphone/ipad costs in Europe about twice what it does here, even more in China). The reasons for that to be the case are plenty, from general output (i.e. US is still in fact either highest of almost highest GNP/capita), combined with scale (even small price break could bring marginally more sales, which can fuel more price breaks). However, the biggest difference lies in market fragmentation (combined Europe is about US size, but each country has its own very separate ways and they don't interact in terms of retail) and more redistributive economy, i.e. higher taxation on all levels, from capital, to income, to consumption (e.g. Euro sales tax, called VAT is from 17 to 25%, Euro income taxes are progressive reaching 50% and beyond on top bracket, Euro social security taxes paid by employers as surcharge go into 30-50% territory, all depends on the country). There is also large amount of social engineering going on there as well, where "undesirable behavior" (such as owning large-displacement engine vehicle) is directly punished by the government through additional taxes and scrutiny. They also excert a direct pressure on manufacturers to make or not make certain products as well, a concept introduced to US just only recently. All this combines into really punitive taxes and high prices of "unnecessary good", which cars, especially luxury ones are perceived as. It gets even worse in poorer countries, almost inversely proportional to their wealth. Explanation for that may be in volume: even if MB or BMW lowered the price, they would not sell more product, so prices remain high to pay for higher distribution cost of smaller markets and the circle closes.
I agree that borrowing money to try and sell products people really do not like is poor legislation. We are stacking up debt upon debt for our grandchildren. With little chance of ever pulling out of the mess we have made. When the price of oil gets to where alternatives are viable, they will be used. So far we are not batting very well on alternatives via the Green Agenda. The real sad part about raising the $7500 to $10,000 is it will only help the well off and foreign manufacturers. Most of the Volt is foreign made. Soon to be moved to China. Most of the EVs are made in Asia. So why are we subsidizing foreign manufacturers and well to do Americans? If someone wants to be green and buy a Volt, let them pay the price. As far as I know the only incentives left are for EVs and PHEVs. Something interesting. The Prius Plug-in only gets a $2500 tax credit. 12 automakers currently qualify for a tax credit. http://www.irs.gov/businesses/article/0,,id=219867,00.html
Former Shell CEO: Get Ready for $5 Gasoline Gasoline prices are headed for $5 a gallon in many locations in the United States this year, says John Hofmeister, founder of Citizens for Affordable Energy and the former CEO of Shell Oil’s U.S. operations. Global demand will rise and pressure supply, while U.S. politicians aren't doing anything to ease prices at home such as allowing for significantly more drilling. "What's really unprecedented is developing countries, particularly China and India, have this insatiable need for more oil and that has not been taken into account when we think of public policy in this country," Hofmeister tells CNBC. "So while we may be producing a bit more oil in this country, and while demand is down a bit, on a global basis, I'm afraid we face a continuing onslaught of prices creeping ever higher," Hofmeister says. "I hope I’m wrong on this. I'd love to be wrong on this." http://www.moneynews.com/StreetTalk/Former-Shell-Gasoline-price/2012/02/13/id/42- 9217
Sadly the USA is not part of the Solar manufacturing picture. We blew it by shutting down the mines that produce the raw materials needed. I would not expect China to sell natural resources, only finished goods. I am waiting until the Payback is like 3 years and I will get solar panels. Should happen within a couple more years. The cause was a 51 percent drop in panel prices last year as the world’s 10 largest manufacturers, led by China’s Suntech Power Holdings Co., doubled output capacity. “Solar is going mainstream in India, helped by Chinese pricing,”
Spinners passed, then there was a short period where those wheels that give the illusion of standing still came in. Both are gone thankfully. But oversized wheels are still popular for everything, and IMO older highline cars with blingy aftermarket wheels look trashy. Most of the wheels also come from China, which makes me worry about durability, not a place known for good metallurgy. I suspect in a few years there will be huge amounts of cracked and broken wheels out there.
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