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In order for any industry to survive the customer base must grow. Otherwise it can be the same money being tossed around with the same companies. Even in sports most leagues tend to eventually expand. Competition is a good thing because it means that there are interests that get into other segments and hopefully that expands the base. For example the mini van craze in the early 1980s. Fewer companies in the market place leads to less innovation overall.
In order for any industry to survive the customer base must grow. Otherwise it can be the same money being tossed around with the same companies. Even in sports most leagues tend to eventually expand. Competition is a good thing because it means that there are interests that get into other segments and hopefully that expands the base. For example the mini van craze in the early 1980s. Fewer companies in the market place leads to less innovation overall.
I think the auto industry is a much different industry. My family for instance has owned all but one GM since I was born whether it was Pontiac, Chevy or a Buick. My family is pretty set in being return customers to Chevy and even the same dealers. The auto industry is based around taking customers and making loyal repeat customers more so than growing the market. It's good to have one new sale but isn't it better to have customers who will continue to buy your product over and over again?
There are more different companies fighting over a slightly larger market share due to millennial getting into car ownership age. The mini van craze is now the crossovers like the Chevy Traverse and Equinox, Hyundai Santa Fe and others.
The only growth for car companies are emerging markets. America for instance is entirely saturated but say China and India are getting into the automobile market.
If you own a company that's doing what's bad for the economy, and most other companies are doing that too, and you decide to do what's right, it will help the whole group of companies more than it costs you, but it won't help your company more than it costs you. So, even though doing right would help all of them, it wouldn't be a net positive for the one doing right. The only way to make it fair and reasonable so everyone wins would be for all of them to do what's right, not just those who do it on their own initiative. Therefore, we need some kind of motivation in addition to the motivation of improving things for all those companies. That's one thing government should in theory be able to provide. Motivation for companies to do what helps all companies, even when it doesn't help their own company as much as it costs. Then, when all companies do it, they all benefit more than it costs them. In theory government should provide that motivation, but it might not work, because government is corrupt and incompetent.
"The auto industry is based around taking customers and making loyal repeat customers more so than growing the market. It's good to have one new sale but isn't it better to have customers who will continue to buy your product over and over again?"
Loyalty is hard to factor into it because it would be odd to suggest someone stays with the same brand all the time. So many makes and models are made from other companies that it is hard to say that it is a 100% chevy or buick anymore. Chevy Aveo is really a Dawoo, Ford Aspire back in the day was a Kia. Car platforms are made and different models are made off of them. Pontiac Vibe and Toyota Matrix were the same car. If the consumer cannot see the difference then there is no difference. I have a book that references an old '82 Buick ad and the whole lineup looks exactly the same (LeSabre, Park Avenue etc).
As for corporate money frankly influence can be nil because if a company doesn't vote (as they cannot) and many don't pay taxes then why would someone care in office? If anything companies are making themselves less relevant not more. Not hiring people, not training people, not paying taxes etc. If you want to be influential you'd have to be hiring people not letting them go.
Mcdonald's coffee was few degrees hot & the clumsy woman who spilled it sued the corporation for millions.
I'm on board with like 99% of what you wrote, but I have to correct you on this. Most people use this as an example of a frivolous lawsuit, but have never actually looked at the case.
The woman was handed a coffee that didn't have a properly secured lid on it (it was sort of half-way on, half-way off), she was like 81 or something, and it was so hot that it actually gave her third degree burns and blackened the tissue inside her thighs. Her health insurance company refused to pay for the grafting treatment because, at her age, they had to use what the FDA considered an "experimental" treatment, so she sued to get McDonald's to cover her medical costs. Without even asking, the JURY ordered McDonald's to pay extra for damages.
But other than that, you nailed a lot of really important things.
Well that coffee thing was actually held between her legs which is a rather poor choice even if the water was cold. Cup holders exist for a reason.
As for special interest money all organizations are special interests as there is no general interest. Boy Scouts are a special interest, dentist associations are a special interest, retired plumbers are a special interest, animal shelters are special interest. Everything is a special interest. Groups lobby. It is natural to lobby because frankly no one vote technically is going to make an area swing in a given direction. So groups compete over their issues and try to get what they want. Does it always work? Not really. But they try. You can get people and groups to agree or disagree for a variety of reasons. It might be the methods, it might be the time frame, it might be the results.
I know of a case in the midwest where a womens clinic, a church and a town got together to fund a program assisting pregnant drug addicts. The clinic didn't want to be known for abortion services to people on drugs, the church thought demand for abortion would drop if they were off of drugs and the town wants everyone off of drugs.
Well that coffee thing was actually held between her legs which is a rather poor choice even if the water was cold. Cup holders exist for a reason.
As for special interest money all organizations are special interests as there is no general interest. Boy Scouts are a special interest, dentist associations are a special interest, retired plumbers are a special interest, animal shelters are special interest. Everything is a special interest. Groups lobby. It is natural to lobby because frankly no one vote technically is going to make an area swing in a given direction. So groups compete over their issues and try to get what they want. Does it always work? Not really. But they try. You can get people and groups to agree or disagree for a variety of reasons. It might be the methods, it might be the time frame, it might be the results.
I know of a case in the midwest where a womens clinic, a church and a town got together to fund a program assisting pregnant drug addicts. The clinic didn't want to be known for abortion services to people on drugs, the church thought demand for abortion would drop if they were off of drugs and the town wants everyone off of drugs.
Exactly, which is why I put all and not just corporate interest!
Labor costs in China are increasing 15-20% per year and will continue to do so. We will see some jobs coming back, but the factories are employing less workers as efficiencies have been gained since the jobs first left.
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