To preface this post, many if not most things that happen around us, happen in the realm of politics. I have heard from several people recently of their weariness regarding politics and I completely understand that. The petty, corrupt nature of what goes on in the world of politics wears on peoples souls and causes many to just conclude, it’s not worth it, and walk away from involvement at any level or reduced levels at a best. The problem with that is, that is exactly the intent of the petty and the corrupt.
When good people decide they have had enough and they turn away in disgust, the people perpetrating the wrongs on society through their bad actions are left that much more free to do so. Hence, it is important to acknowledge one’s weariness, then put that weariness aside and engage the bad actors. It is critical in that engagement to send a loud message that we as citizens have had enough!
With that premise set, New Jersey just joined Arizona and Texas to ban non-dealership car sales in their states. The laws in all three states were written by the car dealership associations and given to state legislators in these states to dutifully sign. Arizona was first, Texas next and now New Jersey with other states considering these restrictive laws in their states. While these laws may not have been specifically aimed at an American car company, Tesla Motors, (in most recent cases, they are), the net effect impacts Tesla’s ability to compete fairly in these markets.
Tesla manufactures their award winning, highly recognized, technologically advanced Model S sedans in Fremont, California. They employ American workers and are committed to continuing to do so with a new 5 billion dollar battery factory in one of four western states currently under consideration.
Keep in mind, this will not stop sales of Tesla’s in these states. It will only make it more difficult for Tesla to compete in what is supposed to be an open, free market environment. The car dealership associations have no interest in an open free market and have demonstrated their ability to influence corrupt politicians in stacking the deck against Tesla and anyone else who would dare to sell their personal transportation products on-line.
Following this logic, one could imagine computer and electronics manufacturers who sell on line having laws written against them, effectively banning sales through anyone other than a local store. The same could just as easily apply for books and music. I would think Apple, Amazon, Yahoo and others might have something to say about that. Perhaps Tesla should approach Apple to consider a partnership. I’d love to see the car dealership groups take on Apple.
My question is, how can these blatantly non competitive, seemingly illegal practices be allowed in 2014?
This is the uncomfortable politics part. Republicans and Libertarians, stay with me while I review a bit of history. I would submit this all started when President Ronald Reagan in the early 1980's announced he was no longer going to enforce the Sherman Anti-trust Act. The result of ignoring this legislation resulted in the wholesale destruction of the family farm by the rapid development of what has become a massive infrastructure of modern Agri-business monopolies.
The destruction of Sherman, introduced in 1890 to combat Standard Oil and the Robber Barons of the 19th century also resulted in the devastation of small business all across America over the last three decades. Just look at any small town main street to see what I’m talking about. Your can get your building supplies, as long as you want to shop at Lowes or Home Depot. The same is true with groceries. Most stores are owned by giant distribution businesses that come under the umbrella of one or two companies. Look at what Wal-Mart has done to local businesses in every community they have entered. The same applies regarding where you buy your gas, there are basically five oil companies on earth controlling all oil and gas distribution. The examples go on and on. If you don’t agree with this summation, that is fine, it’s just my opinion demonstrating how this trend toward monopolies controlling willing politicians is comfortably dangerous to free markets. That’s my only point here.
Regulations implemented in years past as a result of terrible abuses by super wealthy “businessmen” had a purpose. Part of the purpose of these controls was to de-couple the influence monopolist felt, and clearly still feel, they have a right to exercise in concert with elected officials to accomplish their unfair business practices. Instead of operating legitimately in the free market system, they simply get legislators to write laws making it difficult or impossible for their competition to operate. By demonizing regulations, those who want to act on behalf of those powerful forces who have influence over them feel free to remove the regulations. The net affect is, the monopolists come right back to more than willing legislators to do their bidding, at the expense of the consumer.
My hope is to coordinate with people of all political stripes to combat this illegal behavior and reinstitute rules of business that are both constitutional and fair to all who would legitimately participate in a truly free market.
This is a formal call to my Republican, Libertarian and Democratic affiliated friends to join me is raising our voices in opposition to these clearly corrupt actions, committed by dealership associations across the county, who have lined up against free markets as they should exist. I look forward to hearing from you.
