One of the first things you learn in an economics course is the concept of trade-offs: You can’t have everything you want. This is important in the discussion about electric vehicles. US auto workers want to keep their jobs. Most American drivers still prefer cars with internal combustion engines. Environmentalists want Americans to buy EVs. And free traders want, well, free trade. Something has to give.
Or is it? There is a way that each group can achieve many of their goals. First, end regulations and subsidies for EVs. Second, remove President Biden’s 100% tariff on EVs from China and allow duty-free imports. Free trade would give low- and middle-income Americans a chance to buy cheaper imported EVs. More people driving EVs would please environmentalists. And ending the mandate and subsidies will allow US automakers to do what they do best: make cars with internal combustion engines. That will keep America’s auto workers employed and able to continue to use their specific skills.
This is from David R. Henderson, “How Electric Cars Can Make Everyone Happy,” The Wall Street JournalJune 6, 2024.
I will post everything once the 30 days are up.
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