Technology

Sucks to suck, our car companies suck and they absolutely should loose and be forced to fire people if they can't compete. Give me my cheap and decent Chinese cars please. I live in a capitalist country so lets act like it instead of being fucking pussys

Sadly, ever since “too big to fail”, any large corporation is now nearly indistinguishable from the federal government. Just another example of socialism for the rich, capitalism for the rest of us.

To clarify, the bailouts of US car companies were Chrysler around 1980 and GM and Chrysler around 2008. To help them avoid bankruptcy and the resulting loss of jobs, they received loan guarantees (like having a cosigner) and direct loans, all of which they paid back. I think the public generally has a misconception that a corporate "bailout" means they just giving them money, but it doesn't.

Note - I'm not trying to convince you not to hate corporations, and there's no need for a lecture on how evil they are, I know they are. Just clarifying that one topic.

Well don’t forget that Walmart itself is literally government subsidized when the people employed there still need food stamps or other welfare programs.

Your point is? They are both shit, agreed. The fact that we have asshole corps here, doesn't mean we need more of them. We need to fight Walmart, not bring in the Walmart of cars.

A lot of these subsidies (both in the US and China) are implicit. Chinese state rail networks operate at cost, allowing cheap transportation of materials and labor. American borrowing is heavily subsidized through the Fed Credit Window, which keeps rates in the low single digits while corporate bonds and consumer loans can be 2x-30x as high. Both countries cut corners on environmental enforcement and subsidize waste management. Both countries subsidize education and incentive R&D through their university systems.

The real benefit BYD enjoys - even above its Chinese peers - is vertical integration. They own everything from mining interests to technology patents to dealerships. This is a deliberate consequence of Chinese trade policy, which requires foreign investors to partner with Chinese nationals in order to own and operate capital. Consequently, Berkshire Hathaway - a large early investor in BYD - cannot dictate Chinese vehicle manufacturing policy from a private office in Omaha. Chinese locals benefit from the innovation, the domestic capital, the experienced labor force (which can migrate to local competitors), and the increased economic activity it produces.

China is insourcing it's wealth aggregation, which has a cyclical compound benefit over time.