Claw wrote:Profit is a great motivator.
I agree. I have said for a long time that the first auto company to come up with a 30MPG+ SUV-crossover would not be able to build them fast enough.
However, American Corporations think in terms of quarterly profits, not long term strategies. The first 30MPG SUV-crossover will no doubt come from European or Japanese companies. The Europeans probably have the product ready to roll, but the weak dollar makes it financially pointless to send here.
Profit motivates entrepreneurs to take risks and invest in the future, but not big corporations. Corporations are run by guys who make millions when the company succeeds -- and make millions when the company fails.
That's why the free-market is unlikely to solve this problem any time soon. The people running it have no sense of urgency, since they will be rich no matter what. Do you think GM, or it's CEO cares about $10-million dollars? That's about 25-percent of the CEOs annual pay package, even if GM loses money.
Big corporations have messed up the free-market system. That's why I chuckle when people tell me that "the market" can fix any problem. If you are getting paid millions of dollars per year to basically fail, then why bother trying to succeed -- hey, failure upon failure led Dubya to millions of dollars and the Oval Office. He was a C-student who failed his way to wealth and power.
The free-market is broken, and won't fix anything until it is fixed, which won't happen, IMO, until something really bad happens, like the last time it was broken -- the great depression.