It's interesting to consider cars as a nice example given the role of tech and productivity gains in pushing prices DOWN; and yet it's the reverse. W debasement, and nothing else, I'd expect holding steady. Seems like there's scarcity / status effects at work - cars as baseball cards.
I do think the other factor is regulation narrowing the focus of the manufacturers to higher end so they can make a profit. From MPG to emissions rules the state has once again distorted the market away from affordability. This would be a counter to the debasement. Same is true in housing, appliances, food and many other areas.
Money is the base no one talks about and regulations are mostly considered to cut into profits but actually reduce choice and hurt the lower income most.
car buyers have become accustomed to features like complex infotainment systems, cameras, and heated seats and want to trade up for increasingly luxurious settings when they buy new cars.
Can't remember the last time I was in a car that had crank windows. It's not just a regulation/emissions thing (although I'm sure it's getting harder to build a cheap car), everybody wants AC and auto transmission and on and on.
The 25,000 dollar car is going extinct because of monetary debasement
All the other talk about infotainment systems is a smokescreen. Infotainment doesn't add 30% to the cost of a car
It's interesting to consider cars as a nice example given the role of tech and productivity gains in pushing prices DOWN; and yet it's the reverse. W debasement, and nothing else, I'd expect holding steady. Seems like there's scarcity / status effects at work - cars as baseball cards.
Sir this car has a small screen in the dashboard. Now pay $10k more
I do think the other factor is regulation narrowing the focus of the manufacturers to higher end so they can make a profit. From MPG to emissions rules the state has once again distorted the market away from affordability. This would be a counter to the debasement. Same is true in housing, appliances, food and many other areas.
Money is the base no one talks about and regulations are mostly considered to cut into profits but actually reduce choice and hurt the lower income most.
Can't remember the last time I was in a car that had crank windows. It's not just a regulation/emissions thing (although I'm sure it's getting harder to build a cheap car), everybody wants AC and auto transmission and on and on.
Boomers love cars and they’re starting to age out of the market.
This is why Chinese Cars will take over- $35k, 835 km range, lots of tech and even a mini fridge lol
We are doomed.
https://xcancel.com/pitdesi/status/1939552715400683523
if bitcoin keeps winning, do car prices fall to their utility value? or wishful thinking?
Sometimes it's good to live in Latin America, hahaha.
Anyway, I'm still pursuing my dream of owning my Kombi. I'm a fan of vintage cars.