EVs are just the most egregious current example of state intervention causing huge misallocations of capital and generally reducing the world’s standard of living.
Most government economic “planning” is about as smart as having half the people dig ditches during the day and the…
— Doug Casey (@RealDougCasey) March 20, 2024
The push towards electric vehicles (EVs) often seems more driven by political agendas rather than sound economic principles. It’s alarming to witness how state intervention can lead to such colossal misallocations of capital, ultimately diminishing the world’s standard of living. Your analogy regarding government economic “planning” hits the nail on the head—it’s akin to a futile exercise in busywork rather than genuine progress.
The frenzy surrounding lithium, carbon credits, wind, solar, and EVs is indeed concerning. While the current generation of batteries heavily relies on lithium, there’s no guarantee that this will remain the case in the future. The volatility in lithium prices exemplifies the inherent risks associated with such speculative investments. The fact that lithium prices skyrocketed only to plummet dramatically underscores the unpredictability of these markets.