Is it That We Want What We Can’t Afford?
Would you be willing to pay extra for options such as power windows, door locks, cruise control, AC and an automatic transmission? Of course, you already do. Because you have no choice – assuming you choose to buy a new vehicle.
Before about 25 years ago, it was not uncommon for these features to be optional in modestly priced vehicles. Now they are standard equipment in all vehicles and for just that reason there is no longer such a thing as a modesty priced vehicle. There isn’t one available with a starting price under $20,000 and if you want a new truck, the starting price for a mid-sized one is well over $30,000.
This latter is particularly interesting because before about 25 years ago, trucks were less expensive than cars. They came standard with just the absolutely necessaries – i.e., an engine, transmission, brakes and tires. The rest was available, if you wanted to pay extra and could afford to do so. Some did, others didn’t. The wonderful thing was you could choose to pay for what you needed but were not (effectively) forced to pay for everything else.
Fast-forward to the present. You can’t choose not to pay extra for such things as power windows, locks, cruise control, AC and (with a very small handful of lingering exceptions) an automatic transmission. Even the Corvette is now automatic-only, as is true of nine-point-nine out of ten performance cars.
Well, what happened?
Attitudes changed. Not everyone’s, of course. But enough to change things, as is always the case when it comes to change (for good and bad). The change that happened was that a sufficiency of Americans got comfortable with living beyond their means and this has had the unfortunate effect of dragging the rest of us along for the ride. The 3-4 year new car loan that cost about $300 per
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
