Jeffrey Tucker, Brownstone Institute, 2/24
We are living through one of history’s longest and most excruciating versions of “We told you so.” When in March 2020, the world’s government decided to “shut down” the world’s economies and throttle any and all social activity, and deny kids schooling plus cancel worship services and holidays, there was no end to the warnings of the terrible collateral damage, even if most of them were censored.
Every bit of the warnings proved true. You see it in every story in the news. It’s behind every headline. It’s in countless family tragedies. It’s in the loss of trust. It’s in the upheaval in industry and demographics. The fingerprints of lockdowns are deeply embedded in every aspect of our lives, in ways obvious and not so much.
Actually, the results have been even worse than critics predicted, simply because the chaos lasted such a long time. There are seemingly endless iterations of this theme. Learning losses, infrastructure breakages, rampant criminality, vast debt, inflation, lost work ethic, a growing commercial real estate bust, real income losses, political extremism, labor shortages, substance addiction, and more much besides, all trace to the fateful decision.
The headlines on seemingly unrelated matters go back to the same, in circuitous ways. A good example is the news of the electric vehicle bust. The confusion, disorientation, malinvestment, overproduction, and retrenchment – along with the crazed ambition to force convert a country and world away from oil and gas toward wind and solar – all trace to those fateful days.
According to the Wall Street Journal, “As recently as a year ago, automakers were struggling to meet the hot demand for electric vehicles. In a span of months, though, the dynamic flipped, leaving them hitting the brakes on what for many had been an all-out push toward an electric transformation.”
Reading the story, it’s clear that the reporter is downplaying the sheer scale of the boom-bust.
That’s not to say that Tesla itself is going bust, only that it has a defined market segment. The technology of EVs simply cannot and will not become the major way Americans drive. It might have seemed otherwise for a moment in time but that was due to factors that traced exactly to pent up demand caused by lockdowns and huge errors in supply management due to bad signaling.
Looking back, the lockdowns hit in the spring of 2020 and supply chains were entirely frozen by force. This might have been a major problem for car manufacturers that had long relied on just-in-time inventory strategies. However, at the very time, the demand for travel collapsed. Commutes came to an end, and vacations too. At that same time, pre-arranged government subsidies and mandates for EVs flooded the industry, all of which were later ramped up by the Biden administration.
As demand picked up, retailers sold their old inventory of cars and looked to manufacturers for more but the chips needed to complete the cars were not available. Many cars were put on hold and lots emptied out. This continued through the following year as used car prices soared and stock was otherwise depleted.
By the time matters became desperate in the fall of 2021, manufacturers discerned a heightened demand for EVs and began to retool their factories for more. There was even a time when cars were being shipped without power steering, just to meet the demand.
It might have seemed for a time like the crazed period we just lived through was birthing a completely different way of life. A kind of irrationality, born of shock and awe, swept industry and culture. The EV was central to it.
This demand seemed to pan out in 2022 as Americans grabbed whatever cars were available, perhaps willing to give the new doohickies a shot. So on it went as more carmakers threw more resources at production, benefitting from massive subsidies and staying in compliance with new mandates for reducing their carbon footprint.
There was no particular reason to think anything would go wrong. But then the next year began to reveal uncomfortable truths. Cold weather dramatically cuts the range of the EVs. Charging stations are not as readily available on longer trips, charging takes longer than one expects, and having to plan such matters adds time. In addition, the repair bills can be extremely high if you can find someone to do it.
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The Great Reset Didn’t Work: The Case of EVs
To begin with, there is no justification for EV’s because the Green movement is a total hoax and a scam. There is no real environmental threat, only wild accusations made against human industry using falsified data. The sources of those accusations can originate from Commies seeking to undermine the First World’s economies. Or they’re from deranged Earth First worshippers who see humanity as a threat to their Earth goddess. They just want to halt human progress by any lies necessary. The Commies are well satisfied to have the Earth worshippers disable their adversaries.
It’s really nuts that anyone would rely on EV’s which don’t have the reliability necessary to accomplish their tasks. Not to mention they lack horsepower.