[ExI] tech question

[spike]

From: extropy-chat [mailto:extropy-chat-bounces at lists.extropy.org] On Behalf Of Dan TheBookMan

 

>>…Since about the mid to late 90s, American-made cars are price and quality competitive with the Japanese.  I have had both Japanese and American cars, and always found better value with American, even as Consumer Reports insist it’s the other way around.  I don’t know what gives.

 

>…Have you factored in the several thousand dollar increase on cars imported into the US? Would you be in favor of a complete elimination of all barriers to trade in cars? Regards, Dan

 

 

Hi Dan,

 

I favor complete elimination of all import taxes.  They are unnecessary, considering that the ocean imposes an import tax of its own that never goes away.

 

The Corolla/Citation case provides a fun example, because import taxes don’t apply to those: both were made in USA.  Both were sold by dealers in America (Chevrolet and Toyota) for about the same price (within 50 bucks) with the only mechanical difference being the name on the badge.  Otherwise, same car.  Big difference in customer satisfaction.  There are some legitimate reasons for why this would happen.

 

Honda has a factory in Kentucky.  Most of the car builders have factories here.  General Motors has a factory in China.  This whole question gets still more interesting once we recognize that factories are becoming more automated over time.  It matters less than it once did where the factory is located from the point of view of the product, and matters more where the factory is located from the point of view of where the product will be sold (transportation costs of the product.)

 

In the USA, perhaps the biggest consumer item is a car.  It is clear enough to see where that is going now: pretty soon most new cars will be self drivers.  The way forward in that market is clear enough to me: within a generation, the way those will be purchased will be for the buyer to direct-order from the factory, then the car will be constructed according to your specification with perhaps 100 options, then the car will drive itself to your door, with very few humans anywhere in the supply chain.  When that happens, China has few competitive advantages and Japan has huge competitive disadvantages over domestic car builders.

 

Once we get that going, it is easy enough to envision other products going the same route.  We will not need or want import taxes or trade barriers of any kind.  I don’t think we do now.

 

spike

 

 

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