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The cost of solar and wind is becoming so attractive, it’s hard to see why anyone would do otherwise.
The elephant in the room (at least for the US; I’m not as familiar with UK policies) are the subsidies. It sparks new investments because many of the incentives are specifically related to new projects. Other ones mess with the valuation of the equipment, making long term tax burden much lower. It’s not the only energy industry to receive subsidies. But it’s pretty asinine to continue to support the one that’s destroying our world.
“In one case, it’s going to profit, amplifying the incumbent status of the oil and gas industry. In another, under more aggressive decarbonization policy and low oil and gas prices, it’s actively working against the climate goal by spurring additional production.”
For sure. The US was once a leader with its public infrastructure and programs, from education to the highway system. Paying BIG money to provide these incredible public services.
Now it seems like a lot of people in the US want to live in a place with zero public projects, crumbling roads, and unregulated utilities. Even wealthy people who waste money on the dumbest stuff don’t want to pay for top-notch public services. I truly don’t understand how you’d want to be so wealthy but live in a place that’s not well cared for. Drive your insanely expensive car on a road filled with potholes. But selfishness and greed are definitely part of the picture.
Creating new public infrastructure in the US can be extremely expensive, but it’s definitely still worth pursuing.
Nearly every in-depth study shows that for every $1 invested, the economic return is somewhere around $4-$5. And on top of that, failing to have adequate public infrastructure can cause serious economic consequences, which are compounded in areas with a lack of affordable housing.
Even though this article is a little old and sponsored by a party with a vested interest on the topic, I think it’s worth a read:
https://www.politico.com/sponsor-content/2018/06/when-public-transit
In my opinion, the problem for the US is convincing people/businesses that it’s worth it. Shifting away from cars and increasing investments in public infrastructure are two fairly unpopular measures right now, despite the actual economic evidence being overwhelming positive.
To me, it’s a solid example of where great leaders are needed to do something temporarily unpopular for the long term benefit of the constituents.
Yeah, and I have no idea where you are, but this goes far beyond the suspect cities like San Francisco. Not only are many of these workers spread out in tons of cities across the US (and world), it will also hurt wherever their funds were flowing to and the supply chains associated with them. Travel, electronics, food/dining, home furnishings, hobbies of all sorts, etc.
Another big difference is that a lot of these are “new money” people. And I’m not using that in a derogatory sense. It just means that their spending is likely to be much higher than “old money” individuals hitting the same payday.
If you’ve always had $10 million, you don’t go out and start buying shit like crazy even if you make another $2 m. But if it’s your first $2 m, you’re likely to go spend A LOT of it.
And that’s real economic growth. It’s the opposite of trickle-down economics (which just causes more hoarding of wealth and slowing of money exchanging hands).
As much as I feel for the people hit hard right now, I think this is an economic indicator that‘s going to cause many downstream consequences if it continues.
On top of the downward trends by the tech titans, venture capital funding is plummeting. That’s because the VC investors can see that the likelihood of a big successful buyout is decreasing, mostly because the big fish are tightening their belts and facing higher borrowing costs (interest rates).
Many big companies have effectively outsourced R&D, waiting until a startup creates something worth buying instead. Then the VC employees either got a nice payout or employment with the big company (or both).
These often massive transactions were the source of serious economic growth. Those people had stability to spend in a way that many others wish. In the face of crappy outlooks and flat wages in tons of other fields, tech has long been the outlier making plenty of middle income people shoot up in wealth. And it did bring along others for the ride.
That growth drying up is not good for anyone. Well, unless you’re waiting on a market crash.
It applies to anywhere. The problem isn’t one situation. It’s this same story, repeated thousands of times in every city across the globe.
Bobby wants to live in a house. Monthly rent prices are usually around $1,000 per month in his home town.
Joe wants to make money by renting out a house on AirBnb. Hotel prices are usually around $200 per night in the same location. If Joe rents out his house for just 10 nights a month, he can make $2,000. This easily covers Joe’s expenses and puts the extra cash in his bank account. If he rents it out for 25 nights, he’s putting away a lot of cash.
When houses are up for sale, Bobby can only spend a similar cost as his rent. Joe has been watching his bank account climb and is ready to spend a lot on another house to put on AirBnb. Joe can make a profit even if the house is double the price.
Bobby’s landlord sees housing prices rise. Decides to either (1) increase Bobby’s rent to $2,000 - which he can’t afford or (2) sell the house to someone like Joe for a major markup.
Bobby has to move in with roommates and will never be able to afford to buy a home when competing against all the Joes out there.
Nope. First production one completed in July, nearly four years after the first press release. Supposedly customer deliveries at some point of Q3 2023, which is basically down to a month left.
Setting aside anything related to Musk, Tesla really doesn’t seem to be staying competitive.
Cybertruck (and the “indestructible” window press conference) is probably the easiest example. Years of attempted hype that haven’t paid off in a meaningful manner, while rivals have been releasing in-class competition. Anyone can see that’s a problem.
Tesla cars used to be pretty revolutionary, now they’re in an entirely different era that’s filling with exciting EV alternatives around every corner. Yet Tesla style still looks the same. The shoddy construction is still around and becoming more widespread knowledge. They’re failing to attract their target audience due to a long series of missteps. More problems.
Not to mention that Tesla was downright overpriced at its height. It’s a fraction of the volume yet made other automaker valuations look minuscule. The logic for that was never there.
Thanks for sharing that info. Definitely sounds like it might have been a good idea in the past but now overdo for a change. Sad that the current PM wants to continue destruction to get votes.
Seems like a good example of how policies need to be implemented with a forward-thinking mentality. Can’t rely on future changes.