A big reason we do things the hard, expensive way is that government tends to make low-end choices illegal.
The Tata Nano (and automobile safety features generally) is a great example. What generally happens is that firms introduce advanced safety features in luxury cars and they generally become widespread. However, low-end cars don’t have them yet. The government declares these cars “unsafe” and makes them illegal, even if they were safer than the average of only a few years ago.
There are countless examples of low-cost, low-end choices being made illegal, like mini-meds under PPACA . I suspect the $28 leg wouldn’t pass regulatory muster in the U.S. either.
A big reason we do things the hard, expensive way is that government tends to make low-end choices illegal.
The Tata Nano (and automobile safety features generally) is a great example. What generally happens is that firms introduce advanced safety features in luxury cars and they generally become widespread. However, low-end cars don’t have them yet. The government declares these cars “unsafe” and makes them illegal, even if they were safer than the average of only a few years ago.
There are countless examples of low-cost, low-end choices being made illegal, like mini-meds under PPACA . I suspect the $28 leg wouldn’t pass regulatory muster in the U.S. either.