iPhone vs Chevy Volt

iPhone VS Chevy Volt

So why do you suppose the Chevy Volt is such an unmitigated disaster? The federal government has directly sunk millions upon millions of dollars into its development and millions more indirectly. So why is it that it is such an Edsel? (I haven’t looked up the numbers, but I would actually bet there were more Edsels sold to a much smaller population base than GM has sold Volts.)

Compare this to iPhone sales. The iPhone is projected to sell so many units that it will actually affect the nations GDP. And as near as I can tell, it didn’t take a single dollar of taxpayer money to develop or market.

So what’s going on? Why is it that a product that the current government says we need, supports its development and, participates in its production (gave partial ownership to unions and gave millions to keep the company afloat) is such a colossal failure? While at the same time a product that the government has virtually nothing to do with is a runaway success?

I would have to speculate that the reason is simple.

Apple developed a product that quenched a consumer felt need. An easily portable, intuitively user friendly device that meets three needs that the consumer wants filled: 1) a mobile phone, 2) a personal entertainment device, and 3) easily portable connection to the internet.

The government, through Chevy, on the other hand, has provided a solution to a problem the consumer has not perceived. The need for an electric car.  Not only have they solved a problem no one has perceived, they’ve made the solution so expensive, that virtually nobody is willing to even give it a try. And to add insult to injury, at the exorbitant cost they are asking for this solution to a non-problem, they are costing the American tax payer over $40,000 per vehicle. That’s right, Government Motors is losing over $40k for every Volt they sell.

Apple, on the other hand, turns a tidy profit on every single unit they sell.

It’s an old lesson being taught once again. Government should stay out of business. It should not try and direct market activities or pick business winners and losers. Just as every centrally planned government has proven to date, when the government gets involved with deciding the who, what, when and where of business, chaos and failure cannot be far behind. The Chevy Volt, Solyndra, the EPA trying to run the coal industry out of business, all examples of the government getting involved in business to the detriment of the American people. And what does our current political leadership want to do when faced with this record of appalling failure? They want to double down on it. They ask us to keep them in place for another 4 years. This is so counter intuitive it is unbelievable. Common sense tells you the first thing you need to do when you find yourself in a hole is to STOP DIGGING!

In about a month we will find out just how dumb the American electorate is. We have a chance to stop digging. As the saying goes, ”we will get the government we deserve”. God help us all if we continue to dig.