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How Car Dealership Lobbyists Successfully Banned Tesla Motors From Texas

Funksaw writes "In a political op-ed on his blog, long time Slashdot reader and contributor Brian Boyko (the guy who did that animated Windows 8 video) — now a candidate for state representative — explains how lobbyists from car dealerships successfully banned Tesla Motors from selling cars in Texas. From the article: 'Tesla Motors doesn't just present a case study of why a lack of campaign finance reform blocks meaningful reform on the issues that Democrats care about, like climate change and health care. A lack of campaign finance reform blocks reforms on both the Left and the Right. Here's the big elephant in the room I'd like to point out to all the "elephants" in the room: With a Republican-controlled legislature, a Republican executive, and many conservatives in our judiciary, why the hell don't we have free markets in Texas? Isn't it the very core of economic-conservative theory that the invisible hand of the free market determines who gets what resources? Doesn't the free market have the ability to direct resources to where they can most efficiently be used? I'm not saying the conservatives are right in these assumptions; but I am saying that our broken campaign finance system makes a mockery of them.'"

133 of 688 comments (clear)

  1. Free Market? LoL by meerling · · Score: 5, Insightful

    They don't want a Free Market, they want a Free For Them Market, screw everyone else.

    Also, with how I saw Red McCombs screwing around San Antonio while I lived in Texas, it doesn't surprise me one bit.

  2. Re:Free Market? LoL by Daniel+Dvorkin · · Score: 5, Insightful

    Yep. Anyone can describe a utopian economic system ("Under communism, everyone will work together for the common good!" "Under capitalism, competition and individual choice will lead to the greatest possible efficiency!") but in the real world, they all tend toward cronyism and corruption. Every single time.

    --
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  3. Free market, LOL! by Anonymous Coward · · Score: 2, Insightful

    Ever see the shirt with the outline of an elephant humping the outline of a donkey? Republicans have NO desire for free market. They push corporatism. Demoncrats have NO desire for free market. They push socialism.
     
    Simple, apt explanation. Are you stuck in primary school, Funksaw? This is sort of common-knowledge these days.

    1. Re:Free market, LOL! by MrHanky · · Score: 4, Insightful

      Socialism, lol.

    2. Re:Free market, LOL! by sjames · · Score: 5, Informative

      The Ds are what most countries would call 'the right'. They are nowhere near Socialism.,/p>

    3. Re:Free market, LOL! by RazzleFrog · · Score: 4, Informative

      That's what most Americans don't get. "Liberals" in the US would be conservatives in most other countries. We are so far at the bottom of the "socialist" rating scale that we might as well be eliminated as an anomaly.

    4. Re:Free market, LOL! by jandrese · · Score: 5, Insightful

      Yep, socialist just like Obamacare, that thing that makes you buy a corporate product just so taxpayers don't end up footing the bill when you go to the hospital unexpectedly. Practically communist it is.

      The idea that there is anything at all socialist about it is laughable. It's the most corporate healthcare proposal ever devised, which isn't a surprise since it was devised by Republicans. All of the parts that were even vaguely socialist (single payer system for example) were quickly excised because they were a threat to the profit margins of drug makers, insurance companies, and other healthcare services. Most of the real cost saving opportunities were lost because the healthcare industry has a lot of lobbyists and a strong desire not to stop the gravy train.

      --

      I read the internet for the articles.
    5. Re:Free market, LOL! by sjames · · Score: 4, Insightful

      Healthcare would be nationalized. Welfare would pay more and have fewer strings attached. Labor rights would be much stronger. Public education would go through at least undergrad level. Community/municipal ISPs wouldn't be banned in any state.

    6. Re:Free market, LOL! by jeffmflanagan · · Score: 2, Insightful

      Demoncrats? Socialism? Congratulations, you so completely lack critical thinking skills that you've internalized the far-right propaganda coming from hate-radio, RWNJ blogs, and Fox "News."

    7. Re:Free market, LOL! by Alomex · · Score: 3, Informative

      Sweden, Germany, Denmark, your pick.

    8. Re:Free market, LOL! by TapeCutter · · Score: 5, Interesting

      Civilizations are measured by how they treat their weakest citizens..

      Over here in communist Australia my government health care levy covers myself and about 6 other people for less money than I could insure a family of four in the US. UHC has received bipartisan support in Oz since the right wingers gave up the fight to get rid of it in the late 80's (after it had been running for over a decade), according to numerous polls 80% of voters would now vote against a candidate who tried to fuck with it. Recently a similar scheme for the disabled was instituted with bipartisan support and strong voter approval. Personally I am proud to be part of those schemes in communist Australia.

      Seriously, writing "communism" to describe the above state of affairs felt wrong even though I was aiming for sarcasm. Americans already pay about the same per-capita tax on health as Aussies do and have much better economies of scale, but then they have to go out and buy health insurance, wtf? We have statistically superior health outcomes to boot, so someone in the US must be making huge profits from other people's misery, I wonder who?

      --
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    9. Re:Free market, LOL! by sootman · · Score: 2

      I've never seen that emoticon before: ,/p>

      Um, winking guy with a bandana over his nose, sticking his tongue out, with a goatee? ;-)

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    10. Re:Free market, LOL! by TsuruchiBrian · · Score: 2

      Obamacare is socialist. It is socialist in that it forces people to participate in it against their will. Unfortunately it is also very crony capitalist in that it keeps private insurance companies as middlemen regardless of the fact that they are just parasites.

      Obamacare would probably be better if it was more socialist (i.e. single payer). I can even think of some ways to make it more capitalist and still be better (e.g. ones that remove the tie between employers and healthcare).

      The problem with Obamacare is not that it is socialist. The problem is that it has a bunch of benefits to particular special interests that don't deserve them. But that was the cost of getting it past. It was a Pareto-efficient move to payoff the health insurance companies in order to remove their power. It would have been great to just cut them out completely, but there wasn't enough public outrage to overcome how much money they had.

    11. Re:Free market, LOL! by sjames · · Score: 4, Insightful

      It's doing decently enough compared to the dollar. Perhaps those 'entitlements' don't weigh as much as America's fat bankers.

    12. Re:Free market, LOL! by BonThomme · · Score: 2

      well if it's on libertarianmajority.net, it must be true...

    13. Re:Free market, LOL! by sjames · · Score: 2

      You have confused authoritarian with right. In the U.S. it is true that the right tends to be more authoritarian, but it's only a trend and is not necessarily true in all countries.

      And yes, in many countries our right would be considered to be the lunatic fringe.

  4. Wrong party by Libertarian_Geek · · Score: 5, Insightful

    Republicans don't want free-market.
    Democrats don't want free-market.
    They both want different lobbys to pay them (in campaign donations) for the "privilege" of not being encumbered by regulations of the other party.

    Libertarians (both big "L" and little "l") generally want free-markets.

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    1. Re:Wrong party by CanHasDIY · · Score: 3, Insightful

      The problem is that Libertarians want corporations to be unencumbered by regulations to the extent that they can harm people and the environment without oversight.

      The problem with most people who describe Libertarianism is that they have no fucking clue what they're on about (because they aren't Libertarians, and/or they have a vested interest in marginalizing them).

      FWIW, unlike Democrats and Republicans, Libertarians are allowed to think for themselves, and don't get beaten with a rubber hose for stepping out of the party line. I will admit, the official party plank regarding economics is a bit antiquated and unrealistic, but hardly the poison-our-food-and-water free-for-all you're making it out to be.

      --
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    2. Re:Wrong party by Anonymous Coward · · Score: 2, Insightful

      The key differences between the Democrat, Republican and Libertarian parties are that the former two are electable.

    3. Re:Wrong party by FictionPimp · · Score: 4, Funny

      This is like saying that because the only restaurant in town is McDonalds I should suck it up and accept that shit as food. Fuck that, I'd rather keep fighting the good fight and driving to the next town hoping one day my town will get a Taco Bell.

    4. Re:Wrong party by dkleinsc · · Score: 5, Insightful

      There ain't no such thing as a free market.

      Either there's government enforcing at least basic rules about how the market operates (e.g. no "offers you can't refuse"), or there's non-market influences on the decisions of actors in that market (e.g. "I'm bleeding to death, it doesn't matter that the hospital in the next town offers cheaper service").

      What Libertarians tend to actually want is the ability for the more powerful private actor to take advantage of the less powerful private actor with impunity. The more powerful private actor has a key advantage: They have a better ability to research and organize alternative transactions. That allows them to control the pricing in a way that the less powerful actor cannot.

      For a concrete example, consider farmer Bob deciding whether to sell his corn to Archer Daniels Midland for $4.75 per bushel. Look at his options:
      - Sell at the offered price.
      - Not sell at all. That will probably cause him to lose his farm, because without this sale, he doesn't pay off the bank.
      - Try to sell to someone else. But since there's no one besides ADM who buys corn in his area, the only way Bob could pull this off is to invent his own transport and distribution network, from scratch.
      So what you have is not a free market, but a ADM-controlled market that is only free to ADM.

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    5. Re:Wrong party by PopeRatzo · · Score: 5, Insightful

      The problem with most people who describe Libertarianism is that they have no fucking clue what they're on about

      And that goes double for Libertarians.

      Just in the past week, we've had "Libertarians" support restrictions on abortions, both for and against the Keystone XL pipeline (private property rights, yes!, private property rights for anyone but corporations, no!) and both for and against gay marriage.

      Read Reason Magazine for six months if you really want to learn how childish and confused what passes for "Libertarianism" really is. It's the political philosophy of undergrads, and the only reason it has as much currency in the US as it currently does is because some very rich people think they can use it to further erode economic and social liberty. And because it's the political philosophy of undergrads, some very cynical people are manipulating it to create and maintain a feudal system.

      History will look back at the early 21st century Libertarianism about the way it looks back on the Utopianism of the late 19th century, another childish and confused political philosophy.

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    6. Re:Wrong party by jandrese · · Score: 2

      This is a real "no true Scotsman" argument, and comes up a lot with Libertarians who are only starting to become disillusioned. They join for total freedom and sane money policy, then discover that the candidates are mostly tax dodging fatcats who couldn't care less about the people, or think that completely unrestrained corporations will cause the long discredited trickle down economics to finally happen.

      The free market has no solution to the tragedy of the commons.

      --

      I read the internet for the articles.
    7. Re:Wrong party by MarkvW · · Score: 4, Insightful

      The "Free Market" in Action
      (1) Free Market
      (2) Monopolies
      (3) Consolidation
      (4) Business Oligarchy
      (5) Political Oligarchy
      (6) Collapse
      GOTO (1)

    8. Re:Wrong party by aardvarkjoe · · Score: 2

      Just in the past week, we've had "Libertarians" support restrictions on abortions, both for and against the Keystone XL pipeline (private property rights, yes!, private property rights for anyone but corporations, no!) and both for and against gay marriage.

      I've got a newsflash for you: in any group of people, there are people with differences of opinion. Members of any political party will have some areas of disagreement.

      The fact that people who subscribe to (or think they subscribe to) libertarian political philosophy don't always agree with each other doesn't mean that there's anything wrong with that philosophy.

      --

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    9. Re:Wrong party by kajsocc · · Score: 4, Informative

      The problem is that Libertarians want corporations to be unencumbered by regulations to the extent that they can harm people and the environment without oversight.

      Nonsense. Nobody, whether Republican, Democrat, Libertarian, Green, Socialist, whatever, wants individuals to be able to freely harm others.

      Libertarians and Republicans frequently call for less regulation. I'm neither, but I still believe I can explain the argument they're making: they don't want complete deregulation, they just want less of a monopoly on regulation. Government regulation is a monopoly on regulation, and regulatory monopolies lead to regulatory capture (basically, corruption), as we've seen all over the US. Private regulation, on the other hand, means something like having insurance companies "internalize the externalities". If you just now took "private regulation" to mean companies voluntarily regulating themselves without any monetary incentive to do so, I agree, it sounds absurd. But that's not what it means.

      The canonical example is pollution. The argument against free markets goes something like this: without regulation, companies will pollute the skies and dump toxic waste into rivers, since it is less costly than handling the waste. In other words, the market won't price in the externalities.

      The counterargument: if companies did so, they would actually be hurting people--people who breathe pollution are more likely to get cancer, fishing businesses cannot catch uncontaminated fish, etc. These individuals would then have legal standing to sue in court, and have a really good case to boot. If you also had some tort reform such as loser pays + claimants can receive third-party funding for their cases, such claimants could actually win judgments in court, rather than settling out of court for a measly $2k or simply being out-funded into oblivion.

      Under this system, companies would buy liability insurance to protect themselves against such large judgments, or else risk destroying their business entirely. (And who is going to invest in that?) As a condition for continued coverage, they would be required by their insurers to submit to regular audits and comply with certain safety and waste handling procedures, etc. If the company won't submit to these regulations, insurers just jack up the rates--it's riskier to insure them, after all. The audits and other compliance are cheaper by design, so companies will go that route.

      This system provides a balance between the interests of the companies affected by the regulation, and the people who would be affected without it. Insurers don't want to impose onerous regulations lest the company choose a different, better insurer. But insurers don't want to do too little, else they're liable to be mispricing their insurance and end up losing a bunch of money. And corruption is gone, because there's no sense in letting a company you're insuring change your auditing procedures when you believe that's going to cost you money. Better yet, the regulations put in place are preventative rather than reactionary. While a monopolistic regulator motivated primarily by politics may simply react to events that have already occurred and put in place regulations to ensure they don't happen again, insurers actually have an incentive to imagine the worst-case scenarios and design policy to prevent them in the first place.

      Would this work? You decide. But at least get your opponents' arguments straight, first. Otherwise we're never going to get anywhere.

    10. Re:Wrong party by jandrese · · Score: 5, Insightful

      Yep, that was some fancy talking that did absolutely nothing to address the problem, exactly the sort of thinking you get from Libertarian institutes.

      The solution presented is "Don't have commons, designate an owner for everything, and make them responsible for it." Basically, mass private ownership of everything, even the environment. You would have an air baron whom is in charge of the atmosphere and whom you have to pay to use it. Because he owns it, he would want it to be clean as possible and wouldn't allow people to pollute it without paying him. But that doesn't work because it assumes the owner is deeply concerned with long term sustainability instead of short term profits--a proven falsehood when examining corporate behavior today, plus it arbitrarily gives enormous amounts of power to individuals. If you're going to do that, you might will probably want elect them, and if you're electing them, you're basically talking about a government and suddenly it's socialism writ large. If you don't elect them, then you're back to water barons, which is a monumental failure from a socioeconomic perspective.

      There are lots of problems the free market cannot solve, just like there are lots of problems collective rule cannot solve. That's why it is important to choose the right solution for every problem. People who think there is only one true path will end up with lots of bad and inefficient solutions that often just make the problems worse.

      --

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    11. Re:Wrong party by CanHasDIY · · Score: 3, Informative

      There are lots of problems the free market cannot solve, just like there are lots of problems collective rule cannot solve. That's why it is important to choose the right solution for every problem. People who think there is only one true path will end up with lots of bad and inefficient solutions that often just make the problems worse.

      This paragraph is brilliantly insightful, for those of you who can't tell.

      --
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    12. Re:Wrong party by sjames · · Score: 2

      It's not really a no true Scotsman fallacy since it was at one time a major plank in the party platform and many of it's philosophical arguments require it for consistency or even to work at all.

      In order to do away with that idea, the rest of the philosophy and arguments require a fundamental re-working that has simply not happened.

      It's more like saying "No true Scotsman was ever born in Italy to Italian parents and lived his entire life in Italy speaking only Italian".

    13. Re:Wrong party by wisnoskij · · Score: 2

      "FWIW, unlike Democrats and Republicans, Libertarians are allowed to think for themselves, and don't get beaten with a rubber hose for stepping out of the party line."

      There is no political/philosophical party/group in existence that does not punish people who go again commonly held beliefs.

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    14. Re:Wrong party by TsuruchiBrian · · Score: 3, Interesting

      You can't claim "no true Scotsman" just because now there are a lot of tea party retards who call themselves libertarians.

      I have been a libertarian since 1998. I was a bit naive back then (I was 18 and more of an idealist), but I will not concede that the entire libertarian ideology is reducible to this current crop of tea party retards who don't give a shit about most of the ideals of libertarianism.

      The free market has no solution to the tragedy of the commons.

      Neither does major league baseball. That doesn't mean that major league baseball sucks. It just means that major league baseball should be in charge of what it is good at and not solving the tragedy of the commons. There is lots of problems the free market doesn't solve. It solves 1 problem which is figure out how much goods and services should cost through supply and demand without any oversight. If you have a different problem then you need a solution beyond just the free market.

      Anyone who claims the free market is the solution to everything is an idiot. Anyone who claims the free market isn't a good solution to anything is an idiot.

      Any mature libertarian perspective acknowledges the tragedy of the commons. Even the acknowledgement of a limited government is a concession that there is such a thing as a public good that is worth preserving even if it is limited.

      It is possible to believe in preserving public goods and still be a libertarian that doesn't want the price of corn to be set by the government.

    15. Re:Wrong party by brianerst · · Score: 3, Informative

      No, libertarians argue that the problem is conceptually hard not that it doesn't exist. Liberals generally feel the problem is fairly easy conceptually (just regulate it) but hard politically.

      The problem is that there is no one simple answer (as the linked video acknowledges - straight from the mouth of libertarians). Some commons problems are amenable to privatization schemes (land and fisheries ownership - Ronald Coase did a lot of work on this idea) while others work more smoothly based on cooperative communities (Elinor Ostrom won the Nobel for her work on this tactic). Both of these tactics are well respected in libertarian circles because they use locality to solve the knowledge problem.

      Where it gets truly complicated is in open-access resources that don't lend themselves to either method (air and water being two common examples). In this area, there may be areas where regulation is necessary but it should try to be as locally and market focused as possible. Which is why libertarians have put a lot of thought behind ways to get pricing into those types of markets. Libertarians like Jonathan Adler have been advocating carbon taxes for years and the entire Summer 2013 issue of Cato's Regulations magazine features deeply researched and well argued cases for implementing carbon taxes and how best to price them for maximum gain at reasonable cost.

      I think you are arguing against straw man libertarians rather than real ones.

  5. What he's discovering here... by roc97007 · · Score: 5, Insightful

    ...is that there's a difference between "Republicans" and "Conservatives".

    --
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    1. Re:What he's discovering here... by Anonymous Coward · · Score: 3, Insightful

      Anytime you put a label on a group, you've lost. Politicians have been developing ways to twist into or out of various labels for millennia. You want an actual debate, talk about the issues, with real data, and ban all labels.

      It's how I would say that I used to share an office with Nate, and he liked to ski and drive fast cars, not that I used to share an office with that liberal white guy. In one description, I mentioned some information about him. In the other, I mentioned some labels that will make half the world hate him even though they don't know a thing about him.

  6. wrong market by Anonymous Coward · · Score: 5, Funny

    The free market here is in politicians, not autos.

  7. Conservatives? by intermodal · · Score: 5, Insightful

    I think it's cute that the synopsis above thinks Texas has a lot of conservatives in its government. Republicans != conservatives, at least not universially.

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    1. Re:Conservatives? by jxander · · Score: 2

      Plutocrats, mostly.

      That basically means "Whoever has the most money gets make the rules. Hey look, I have the most money, so I made a rule that says I don't have to pay taxes. And I made a rule that says you have to buy from my company ... hehe this is fun."

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  8. This could backfire big-time for Texas by Animats · · Score: 5, Funny

    Texas is trying to convince Space-X to build a launch facility near Brownsville, TX. Someone may have forgotten that Elon Musk runs both Space-X and Tesla.

  9. Re:"Broken campaign fincance": a Constititional ri by zzsmirkzz · · Score: 2

    Where is the allowed acceptance of corporate campaign contributions covered in there? I don't see it. Notice my wording, running for and holding office is a choice, it's completely voluntary. By choosing to run for and, potentially, hold office you must agree to the rules. If those rules say you cannot accept compensation from for-profit corporations (as opposed to non-profit political organizations), then you cannot. Constitution not violated.

  10. Re:Free Market? LoL by MickyTheIdiot · · Score: 5, Insightful

    Republicans aren't free market libertarians, they are corporatists. Corporatists go complaining to the government when their long standing business model is challenged. Look throughout US history and you'll see examples going all the way back to the decline of the railroad empires.

  11. Not a new law... by Anonymous Coward · · Score: 5, Insightful

    It wasn't a new law that kept Tesla out of Texas. The law that car makers couldn't sell direct to consumers in the state has been there for years. Tesla can sell all the cars he wants in Texas. He just has to get someone to open dealerships just like GM, Ford, Toyota and all the others.

  12. Read the article by Karmashock · · Score: 4, Funny

    They're not saying that Tesla can't sell their cars in Texas. They're saying that Tesla can't deal them without using a third party dealership.

    Its one of the old monopoly laws. Another one would be movie theaters. They used to be owned almost entirely by movie studios. That is, universal, etc would literally own the theater. They broke up most of those relationships and now you have to have separate corporations for many of these things.

    Tesla could probably sell their cars just fine if they contracted with the local dealerships. Why they don't... I do not know.

    Regardless, I agree that companies should be able to sell their products directly. After all, doesn't Apple have Apple stores that sell apple laptops directly? And then there are all the direct internet retailers. I can buy a computer direct from dell or a pair of socks direct from the gap. And the gap "makes" those socks. They're "gap" socks.

    So I agree, the law is dumb. But it is actually very easy to get around it by just dealing with the dealerships instead of setting up your own.

    AGAIN... I agree... it s dumb. But its manageable.

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    1. Re:Read the article by Anonymous Coward · · Score: 5, Interesting

      In Tesla's defense, would you willingly let your wares be sold by dealerships that are out to make the most money possible from the customers often with dishonest tactics? Car sales people are among the most despised, least trusted people on the planet. I don't think there are any auto manufacturers that wouldn't kick independent dealerships to the curb if they could.

    2. Re:Read the article by compro01 · · Score: 3, Insightful

      Tesla could probably sell their cars just fine if they contracted with the local dealerships. Why they don't... I do not know.

      $$$$$$$

      Dealerships don't work for free. They would either need to add at least $3k to the price of a bottom-end Model S or Tesla would have to eat that cost.

      Also, I wouldn't rule out the dealers saying no to electrics on the basis of the lack of maintenance revenue. The stealerships wouldn't be able to charge Tesla drivers obscene rates for oil changes and such.

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    3. Re:Read the article by organgtool · · Score: 2

      Yes, it is manageable, but the irony is that the current system that requires dealerships to sell cars in an attempt to keep costs down by preventing monopoly abuse of car manufacturers would actually cause the price of Tesla cars to go up. That, of course, is because the dealership is a middleman that is out to make as much profit as possible by jacking up the price of the cars. In addition to that, I'm sure Tesla would love to drastically improving the purchasing experience by selling their cars directly at the lowest possible price and prevent their customers from having to haggle with salesmen to avoid getting completely raked over the coals

    4. Re:Read the article by KatherineTheGeek · · Score: 2

      Tesla doesn't work with independent dealerships because dealerships have proven over and over again that they add costs, but don't demonstrably add value to the process. Buying my Model S in California was the easiest, most predictable process of any car I've ever purchased. Better yet, Tesla service centers aren't revenue sucking leeches – they're there to ensure that Tesla ownership is a positive experience where problems are taken care of efficiently. There's plenty of competition for Tesla in the form of other manufacturers and their dealerships. What there isn't is any competition with the horrific manufacturer+dealer business model, and that's what needs to change.

    5. Re:Read the article by pesho · · Score: 4, Funny

      The stealerships wouldn't be able to charge Tesla drivers obscene rates for oil changes and such.

      But sir you batteries will need to be waxed every three months or every 3000 miles, otherwise they will no longer hold charge you warranty will be voided. That's unless you opt for our extended service warranty which comes with free battery waxing and electricity flush ( a small monthly payment applies, but will tuck it in your financing and you will never notice it). We do recommend flushing the electricity of your car at least once every six moths. Stale electricity can get dirty and clog he coils of your electric motor.

    6. Re:Read the article by AaronW · · Score: 5, Interesting

      As the owner of a Model S I looked in to the battery longevity. The battery pack should be good for a minimum of 8 years and likely considerably longer. From what information I have been able to gather, the cells are good for 3000 full charge/discharge cycles. Being very conservative and giving 200 miles of range per full charge (which is usually a fair amount more) that works out to 600,000 miles.

      Plus it has been shown that replacing a battery pack is trivial with an automated system that can replace a battery in about 90 seconds.

      The maintenance should be considerably less. The motor won't need an "oil change" for 12 years according to a tech I spoke with at the factory. Tesla has also stated that their goal is to not make a profit on service and maintenance, which is a far cry from the dealerships.

      Right now the only way to buy a Tesla is online through their web site. It was a far more pleasant experience than dealing with dealerships trying to get a car in the color with the options I wanted then having to haggle over the price.

      The maintenance schedule suggests taking the car in once a year for service. The warranty covers everything, including wiper blades and brake pads. Brakes shouldn't need service since they're hardly used. About the only thing they have to do other than inspections are to rotate the tires, change the cabin air filter and the wiper blades. The only other part that might need servicing periodically is the lead-acid 12v battery.

      There are far fewer things to go wrong mechanically with the car considering that there's no transmission (just two gears with a 9.71:1 gear reduction) and an induction motor. As it is, the entire drive assembly can be easily removed and replaced (it takes them under 5 minutes to bolt the whole assembly in place at the factory). There's coolant, but it probably needs changing far less frequently. The AC should be a lot less prone to leaking since there's no engine mounted compressor with flexible hoses. There's no spark plugs, oil pumps, fuel pumps, fuel filters, air filters (other than cabin), EGR valves, oxygen sensors, catalytic converters, etc to wear out. Similarly, there's no oil changes, problems with warped heads, valves, camshafts, piston rings or all the other parts that wear. The only thing that can basically wear is the differential and bearings and the standard suspension stuff.

      Dealerships are just a way to insert middlemen where they're not needed, and they're a monopoly by design. Usually you can't put in a competing dealership within a certain distance of an existing dealership unless they sell a different brand of car. That gives dealerships a local monopoly.

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  13. lobbying for their own exemption by james_shoemaker · · Score: 5, Informative

    I read the laws tesla is lobbying for on their website, it's a rather specific exemption from the dealership law for basically them:

    "a manufacturer of only all electric-powered or all battery-powered motor vehicles, or a distributor of only all electric-powered or all battery-powered motor vehicles, that (i) owned and operated a new motor vehicle dealership in the United States on or before March 1, 2013, and (ii) has never sold its line make in the United States through an independent franchised new motor vehicle dealership, may own or operate a dealer or dealership, or act in the capacity of a dealer, at any location within the state and may obtain a dealer general distinguishing number under Section 503.029 of the Transportation Code."

          "let's write ourselves an exemption, but slam the door on anyone coming after us"

    1. Re:lobbying for their own exemption by smack.addict · · Score: 2

      That's not what they were doing.

      They knew there was no way in hell they would get a blanket exemption or get the law repealed (Tesla's preference). So, they tried to craft the most palatable thing that could be passable.

  14. Austin showroom by 605dave · · Score: 5, Interesting

    Tesla is not banned from Texas, they are banned from having dealerships. I just test drove (and will probably buy) the Tesla sedan last Friday here through the Tesla showroom at the Domain in Austin. I now have to simply go online and order one, and it will be delivered right here to Austin, Texas. In addition Tesla has an agreement with a local repair shop for any servicing, and they are building a charging infrastructure here in the state. So you can't say they've been banned, only that they have been prevented from having a tradition all in one place solution.

    And I find it so amazingly ironic that all of the Republicans in this state who pontificate about the free market and demonize regulation would fight to keep the dealership system. It is exactly the kind of regulation they usually abhor, and prevents the capitalist system from working. The hypocrisy is unfortunately sadly predictable for those on the right in Texas. This is the same group that has passed a voter ID law to suppress the voting rights of the disadvantaged, even though in the last ten years there have only been 4 cases of voting fraud that could have been stopped with the ID law.

    --
    Be kind, for everyone you meet is fighting a difficult battle. - Plato
  15. Economics of Car Dealerships by dhalsim2 · · Score: 3, Informative

    This isn't a Republican vs Democrat thing, but it _is_ very political. Planet Money had an explanation of the economics of car dealerships and how dealerships and politicians prevent sales directly to consumers.

    http://www.npr.org/blogs/money/2013/02/19/172402376/why-buying-a-car-never-changes

  16. Re:Nobody is Banning Tesla by Russ1642 · · Score: 2, Insightful

    Protesting by not doing business in the state sure sounds a lot like lobbying.

  17. When you have a govt that regulates *everything* by hsmith · · Score: 2

    All of that regulation is for sale. The more power the govt has, the more it will be up on the auction block to the highest bidder. A more powerful govt is the last thing anyone should want.

  18. Invisible hand of the free market? by Acapulco · · Score: 3, Informative

    I have come to believe that "the invisible hand of the free market" is an euphemism for "MY invisible hand ON the free market"

    --
    Slashdot. Unreadable news to annoy nerds. - wonkey_monkey
    1. Re:Invisible hand of the free market? by CanHasDIY · · Score: 2

      What would you call that?

      A Dirty Bernanke? Perhaps the Greenspan Steamer?

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
  19. Re:Nobody is Banning Tesla by profplump · · Score: 5, Insightful

    If it's "dishonest" to frame this as "Tesla can't sell cars in Texas" then it's equally "dishonest" to frame it as "Tesla can sell cars in Texas if the follow 'the rules'". Both of those statements are true. Neither tells the whole story. And there's no reason whatever to accept one version over the other.

    In 1960 blacks it was true to say "blacks in MS can vote if they follow 'the rules'". Of course "the rules" were desperately unfair both in conception and enforcement so in practice kept blacks from voting. Hence it was also true to say "blacks in MS are not allowed to vote". Just like in the Tesla case neither simplistic statement tells the whole story, but neither is any more "dishonest" than the other, they're just framed from different points of view.

  20. Mockery of free market indeed. by dittbub · · Score: 4, Funny

    Laws go to the highest bidder. What could be more free market?

  21. Re:Free Market? LoL by durrr · · Score: 5, Funny

    The invisible hand of the market determines who gets what resource by slipping fat checks into the right persons pockets.

  22. Re:Free Market? LoL by Anonymous Coward · · Score: 4, Insightful

    Exactly the same thing can be said about Democrats. Don't play partisan politics. They are both the same.

  23. Re:Free Market? LoL by MightyMartian · · Score: 5, Funny

    I want to be a corrupt crony, you insensitive clod!

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  24. Re:Nobody is Banning Tesla by PktLoss · · Score: 4, Insightful

    I understand the basis of the franchise laws as they exist to be: Car companies needed to expand in the old days, but lacked the capitol. Franchisees bought the rights to sell cars from a given company, put their name on the door, and started selling Ford, GM, whatever. Once the car companies themselves were in better shape (with cash kicking around) it would have been trivial for them to open their own dealership down the road, then either stop selling cars to the franchisee, or undercut their prices, etc. etc. Without those laws it would have been easy, and economically beneficial, for the car companies to kill their dealer network and replace it with corporate stores once they had the money to do so.

    No franchisee has given money to Telsa to start selling their cars, so there's no one who needs those protections.

  25. Re:Free Market? LoL by Anonymous Coward · · Score: 2, Funny

    I call that the invisible hand job.

  26. Re:"Broken campaign fincance": a Constititional ri by sjames · · Score: 2

    I don't see much there for corporations, only for the people.

  27. It's not Capitalism to blame by sasquatch989 · · Score: 3, Interesting

    The issue is that Republicans are liars and at the end of the day are all just homophobic Democrats. Bush was not a conservative, not by any real economic measure, but that is Rove and Ailes fault. Of course when you look at the war-agitprop and unapologetic positions of Democrat leadership then you sson realize that democrats are just hedonist war-mongers. Their common fault is that they all believe that their party can fix what the other party has broken. I always refer to politics with the same analogy: It is just like professional wrestling. When the cameras are on and the stage is set they are bitter enemies, smashing each with rhetorical chairs and over-the-top storylines. When the lights are turned down and the crowd goes home, they are all backstage drinking beers and swapping wives. In the end its because the biggest corporatist-whores are the media themselves, the media that has never known a war that it at first didnt love and cheer-lead for, the media that always implicilty calls for legislative action, the same media that can get caught red-handed in a lie but never apologize or be punished. #CNNMakesYouDumb

  28. Re:Free Market? LoL by RazzleFrog · · Score: 4, Insightful

    But Democrats don't sell themselves as wanting completely free and unregulated markets. That's not to say they are hypocrites about other things but in this case it is more about Republicans.

  29. Re:Free Market? LoL and more LOL by leftover · · Score: 2

    Keep going back -- look up Whiskey Rebellion.

    --
    Bent, folded, spindled, and mutilated.
  30. Re:Free Market? LoL by Above · · Score: 3, Insightful

    I can imagine someone arguing this is the free market working. Lobbying and representation is a product, and those with the most money are purchasing it.

  31. I walked by the Tesla store in Houston this weeken by raymorris · · Score: 2

    This past weekend I walked by the Tesla store in Houston. I guess one of their employees got a dealer's license or something. I know two people with dealer's licenses, one owns a small dealership and the other sells a few cars a month from his front yard, so I guess it's not THAT big of a deal.

  32. Re:Free Market? LoL by cusco · · Score: 2

    the invisible hand of the free market determines who gets what resources? Doesn't the free market have the ability to direct resources to where they can most efficiently be used? I'm not saying the conservatives are right in these assumptions; but I am saying that our broken campaign finance system makes a mockery of them.

    Good. They deserve to be mocked.

    --
    "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
  33. Re:Free Market? LoL by TeknoHog · · Score: 5, Funny

    Under capitalism, man exploits man. Under communism, it's the other way around.

    --
    Escher was the first MC and Giger invented the HR department.
  34. Holy Fuck People! by sycodon · · Score: 5, Insightful

    OK, RTFA.

    EXISTING laws proscribe direct sale to the consumers. Argue if you want about how those laws cam into existence, but they are in fact, the law and predate Tesla.

    Tesla wanted the laws changed. So they were actually the ones lobbying for a special exemption.

    Texas didn't ban Tesla cars, they didn't change the existing laws to accommodate Tesla's sales model. You can argue about that being smart or not, but Telas's cars are NOT banned.

    --
    When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    1. Re: Holy Fuck People! by Anonymous Coward · · Score: 5, Interesting

      Correct! Tesla cars are not banned in Texas. There is one driving around my neighborhood. Yes, I live in Texas.

      That said, this is par for Texas politics. I, along with most people I know here, see Tesla and their need for direct sales as a legitimate argument. EV's are not widely available like regular vehicles are, so we need to have a test bed to see how introduction that into the marketplace works. Tesla is that test bed.

      Really, this is about stagnant Republican cronyism that keeps Texas from progressing in areas of economic opportunity. There is a LOAD of oil money flowing in Texas right now, and Texas politicians, apparently here anyways, seem to hate upcoming markets. Ironically, that same oil money elected thes idiots blocking this.

      I'll take a guess and say the right people were not influenced enough for this to pass. In short, they didn't pay enough, or the right people to get this changed.

    2. Re:Holy Fuck People! by fermion · · Score: 2
      I will also say right now I don't see why Tesla does not work with existing high end dealers in Texas. There are several that are extremely reputable that work with a number of high end cars(lotus, maybach) and are specifically able to deal with the clientele that Tesla wants. Recall that the original gliders were supplied by Lotus.

      This is really just a fluke of history, like in some states you can't buy alcohol except from the state. I think, even though I agree that in the long run Tesla should be able to sell cars directly, at this point is simply the elite having a pissing match over who is going to get rich. It does not really effect any real person directly.

      In fact the article makes a complete misstatement. I don't know anyone in Texas who could afford a 70K car could go to the local mall where Tesla has a viewing room, then buy a ticket to purchase the car. The only thing keepping such people from buying the Tesla, and would be many given the number of Lotus, Rolls Royce, not to mention a mercedes in every driveway, that exists in Texas, is the lack of charging stations, Right now there is one.

      When Tesla has 10 charging station in Texas, then maybe they can complain. When even my grocery store has a charging station, one wonders why the problem is with Tesla.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    3. Re:Holy Fuck People! by smack.addict · · Score: 5, Insightful

      Tesla doesn't want these buffoons selling Teslas because dealers don't really want to say them.

      Sure, they'll pay lip service to the idea. But the problem is that Tesla's have very few moving parts. There's no money to be made off of Tesla services. And that's where these guys make their money. So they will use Tesla's to draw people in, but they'll sell something else.

      By the way, who cares why? What if it is just because Elon hates TADA? In a free market, he should be able to sell direct if he wants.

    4. Re:Holy Fuck People! by fermion · · Score: 2
      I don't know if you read this correctly. I am not talking about buffoons selling the Tesla. I am talking about extremely high end firms who can connect to base that will buy a Tesla. Someone comes into to buy a Mercedes, see a Tesla, and maybe buys it. I have seen this happen. Or maybe when the used market comes up, this provides a trusted venue to buy them. This type of thing happened to me when I was looking for car. Thought I was going to buy one thing, ended up buying a Volvo, though never thought we would.

      Honestly the dealer on these cars don't make money on repairs. The types of cars are reliable. They are built to last half a million miles. There are many that are in excellent condition that have been on the road for 40 years. After warranty, just like any other car, there are free lance mechanics that provide superior service to the dealer. I drive by one that is always crammed with mercedes, Ferrari, Porches, BMW, Audis, even old fiats.

      As far as reliability of electric car, one of my friends has one. There is a lot of money to be made in it. It required expensive service.

      In any case, as mentioned, maybe this will, in the long run, end the dealer monopoly. That would be fine. And maybe in few years when I am ready for another car if Tesla is not only for the 1% I might buy one, but only if they have charging stations. But I will believe that Tesla is going to produce a car for less than 40K when I see it.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    5. Re:Holy Fuck People! by AK+Marc · · Score: 4, Insightful

      So there should be "Telsa Service Centers" that connect you with a dealer in OK, LA, on NM, and when you buy your car from the out-of state dealer, the Service Center will inspect it and hold it for your collection. In fact, they'll hold stock for the out-of-state dealers to cut down on delivery time. But they aren't a dealer, that'd be illegal.

    6. Re:Holy Fuck People! by lgw · · Score: 4, Informative

      I will also say right now I don't see why Tesla does not work with existing high end dealers in Texas. There are several that are extremely reputable that work with a number of high end cars(lotus, maybach) and are specifically able to deal with the clientele that Tesla wants. Recall that the original gliders were supplied by Lotus.

      Lotus had to stop selling cars in the US for the most part for about a year IIRC (I guess they're back now). Maybach is dead. That's probably just it: this is not the model Tesla wants.

      It's an incredible amount of work to create a dealership program (you have to invent training programs and survey programs and police the heck out of the dealerships, but in terms of customer experience and financial auditing). Tesla is selling cars as fast as they can build them as is.

      The Texas government has reversed in the past on car-related regulations that pissed people off - it's fairly responsive to the people when it comes to that. If people want Teslas, the government will act. It will actually be pretty interesting to watch this play out.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    7. Re:Holy Fuck People! by TsuruchiBrian · · Score: 4, Insightful

      Even slavery wasn't really slavery, because the slaves had the freedom to choose not to be slaves by escaping from the south to the north.

    8. Re:Holy Fuck People! by mattack2 · · Score: 3, Insightful

      I will also say right now I don't see why Tesla does not work with existing high end dealers in Texas.

      Because Teslas would cost even more than they already do?

    9. Re:Holy Fuck People! by bentcd · · Score: 2

      I will also say right now I don't see why Tesla does not work with existing high end dealers in Texas.

      I can see two immediate reasons why Tesla wouldn't want to involve themselves with existing dealerships.

      First, the dealerships are a poison pill. It is common in the various states to have laws that effectively say that if you have ever sold your cars through a dealership, you are condemned to always sell your cars through dealerships in the future. A car manufacturer would be a fool to voluntarily tie his own hands and feet like that. Tesla being a brand new manufacturer without any legacy chains holding them down have great freedom to come up with their own sales model and they are making the very best out of that opportunity.

      Second, existing dealerships have no incentive to sell Tesla cars because there isn't any money in it for them: They can't skim a lot off of the sale price because people can easily order the car from California at the factory price, and they can't rely on profitable service and repairs because there's just not that much to service or repair on an EV. Tesla needs to run a very aggressive sales program to generate the cash flow that they need to achieve their short to mid term goals and dealerships would never deliver this cash flow. They'd keep a couple Teslas on the lot as talking points but they'd try their damndest not to actually sell any.

      --
      sigs are hazardous to your health
    10. Re:Holy Fuck People! by Specter · · Score: 2

      There was at one time a rationale for the law. Legend has it that when auto manufacturers first started selling cars they relied really heavily on dealers to take the risk of introducting this new-fangled device and building a durable market for it. After the market had been established and the risk eliminated the dealers felt, not unreasonably, that it was a bit unfair to allow the manufacturer to barge in and simply drive all the dealers out of business.

      Personally, I think if the dealers were dumb enough not to have protected themselves contractually from this completely foreseeable risk they they deserved to be run out of business. Most (all?) State legislators didn't share that viewpoint though (and I'm sure the big campaign donations didn't hurt) and we ended up with the system we've got today.

      I think it's reasonable to say that this model of government enforced monopoly has outlived its usefulness, however, inertia in the system means we're likely to have to live with it for a while longer.

  35. Re:Big oil by Iniamyen · · Score: 3, Informative

    There are car dealerships around here (Seattle area) that do "bottom line" or "lowest everyday" prices, but they are still above invoice. Car dealerships will even sometimes sell new cars at below invoice prices, because it's in their interests to move product and they will make that money back on manufacturer discounts, service, etc...

    In my opinion, the root of the problem is that dealerships are an additional cost which affects the price of a car, and a good argument can be made that in a hyper-regulated industry with lemon laws, the cost isn't a necessary one.

  36. Why not just open / franchise a Dealership? by landoltjp · · Score: 2

    Disclaimer: I'm Canadian, but I have been to texas once.

    Ok, 1) Read TFA, 2) don't know much about selling cars (hate BUYING them enough).

    Is it possible for Tesla to franchise out a small Tesla dealership in these states? ie, play by the rules? Perhaps only to the barest letter of the "rules"?

    Are they not allowed to set a "no haggle price" model with the dealership? I'm not sure why not, since The Saturn Car company did that. They either allow for a few points for the dealership in a "dealership price" in texas, or they take a few points hit when selling in this model in texas. or both. It would then give them access to those markets.

    It really does seem like they're playing chicken, or "ok, if I can't play my way, I'm taking my marbles and going home".

    Perhaps they hope to change the system. I would love to see that sort of thing happen.

  37. Not just in the republic of Texas by deviated_prevert · · Score: 2, Interesting
    Up in BC Canada at one time you had to be approved by the largest car sales mafia organization to be on a the BC public transit board. Rather like Milo Minderbinder .INC. Basically the same thing was true on the legislative side of the equation. There was and is not any real "PUBLIC" oversight of services it is all controlled behind the scenes. This state of affairs is spreading into every aspect of the political economy of the province. Essentially to paraphrase a well known American politician "The business of business is politics".

    My wife who knew Alex Fraser and went to his wedding heard all about this situation. Since then not much has changed except Milo Minderbinder saw the light of day around the time of expo 86 and let the transit board build advanced public transit but only in the lower mainland, from which his organization(s) are profiting nicely to say the least. So far he has not approved any real rapid transit for his empire on Vancouver Island though as it would cut into car sales there to say the least.

    So Texas is definitely not the only place where the politics of the car dominate things. I was offered an opportunity to run for the organization up in Northern British Columbia against the incumbent socialist MLA. I turned them down. However the individual who did accept the free ride into automotive politics, Al Passarell an NDP turn coat didn't live to make a difference. Though he could have and most likely would have. It is almost as if someone up there is pulling the strings in BC. The ghost of WAC Bennett is up in the clouds working a remote control and this is how the Sky Train really works it is not run by computer at all

    Funny but in the many years since the Milo Minderbinder political organization magically disappeared from the landscape, in the background the same organization is still pulling the strings just under a more liberal banner!

    --
    This message was not sent from an iPhone because Peter Sellers really was a deviated prevert without a dime for the call
  38. Re:This is a "Free Market" by div_2n · · Score: 2

    For an individual to benefit from that corporate income, at some point it has to become their income.

    That's terribly inaccurate. Creative minds long ago figured out how to get personal benefit without making it personal income. Large companies have people whose sole job is to find ways to minimize tax liability. Eliminate corporate taxes and these folks won't be fired -- they'll be reassigned to spend all day every day to come up with even more elaborate ways to benefit management without having it be personal income.

  39. Re:Free Market? LoL by PraiseBob · · Score: 5, Insightful

    Neither party wants a free market. The difference is one of those parties makes a lot of speeches about wanting a free market.

  40. Here in the "communist" Great Britain.. by gb7djk · · Score: 3, Interesting

    Did you know that, here, we can go to one of several websites and buy a new car from any manufacturer, usually with a significant discount over list, together with a mandatory manufacturer's warranty that has to be honoured by that manufacturer's service outlets?

    The Health Service is creaking a bit though...

  41. Re:Slashdot Canidate by Moryath · · Score: 5, Insightful

    There are two kinds of Libertarians.

    Idiots who are too naive to understand that libertarianism leads to monopolism and vulture capitalism, and

    Monopolist Vulture Capitalists.

  42. Re:Free Market? LoL by interval1066 · · Score: 2

    They do all the time. The problem here is Texas politics, not "republicans". Get a list of Texas law makers, regardless of affliation, and put a check mark next to the ones with interests in car dealerships. That will illustrate the problem very nicely. And you'll see plenty of democrats in the list, my friend.

    --
    Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
  43. Re:"Broken campaign fincance": a Constititional ri by CanHasDIY · · Score: 2

    The first amendment doesn't specify HOW one may petition the government for redress of grievances or guarantee equal access to that right

    The 14th Amendment specifies that all persons are to receive equal treatment under the law, and since the 14th applies universally, then there very much is a guarantee of equal access, which current campaign finance laws illegally prevent.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  44. TL;DR requested... by zooblethorpe · · Score: 4, Funny

    Here's what the Tesla site says: http://www.teslamotors.com/advocacy_texas

    Here's the Dallas Observer's discussion: http://blogs.dallasobserver.com/unfairpark/2013/09/tesla_crushed_by_car_dealer_lo.php

    And Auto News: http://www.autonews.com/article/20130909/RETAIL07/130909878/how-texas-dealers-slammed-the-door-on-tesla

    Could you put that into a car analogy for us?

    ...

    ( ducks and runs for cover )

    --
    "What in the name of Fats Waller is that?"
    "A four-foot prune."
    1. Re:TL;DR requested... by ackthpt · · Score: 3, Funny

      Here's what the Tesla site says:
      http://www.teslamotors.com/advocacy_texas

      Here's the Dallas Observer's discussion:
      http://blogs.dallasobserver.com/unfairpark/2013/09/tesla_crushed_by_car_dealer_lo.php

      And Auto News:
      http://www.autonews.com/article/20130909/RETAIL07/130909878/how-texas-dealers-slammed-the-door-on-tesla

      Could you put that into a car analogy for us?

      ...

      ( ducks and runs for cover )

      How about this: Anyone who can afford one of these will simply go to another state to pick up the keys.

      --

      A feeling of having made the same mistake before: Deja Foobar
  45. Re:This is a "Free Market" by cusco · · Score: 4, Insightful

    If Exxon is going to have the privileges of a person I'd be perfectly willing to let Exxon vote. One vote. The other side of the deal would be that they would also have to accept the responsibilities of a person. Including the death penalty for their many acts of premeditated murder.

    --
    "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
  46. The Tesla is not a car by TomGreenhaw · · Score: 3, Funny

    Its a computer with a really nice set of wheels :-)

    --
    Greed is the root of all evil.
  47. Re:Slashdot Canidate by Anonymous Coward · · Score: 4, Interesting

    Your not talking about Libertarians, you are talking about the hypocritical ultra-conservatives that call themselves the Libertarian Party of America. They have nothing to do Classical Libertarianism.

  48. There's another side of things by apcullen · · Score: 2

    So far, nobody's mentioned in the discussion the following angle on the story:

    OK. So dealerships don't like being cut out. And they don't like it. Of course not. They're small businesses. They're owned by families, not giant corporations, and those families are terrified that all the rest of the giant corporations will cut them out the way that Tesla does. Is it really so much better when Tesla Corp (or Elon Musk, for that matter) keeps all the profit instead of sharing a small percent with a local family?

    I'm not a car dealer. Just thought maybe this was a point worth considering.

  49. Re:Slashdot Canidate by poity · · Score: 4, Insightful

    Most Slashdotters can understand that being a Liberal does not necessarily make one a Socialist or Communist. Why then do we accept the pigeonholing of all Libertarians as Anarchists/Anarcho-Capitalists? Those among the political right who cast the diverse group we know as Liberals into Socialist/Communist box are mocked for their ignorance -- and rightfully so. Yet, those among the political left who cast the diverse group we know as Libertarians into the Anarchist/Anarcho-Capitalist box are applauded, rewarded as is the case here through moderation.

    --
    your thin skin doesn't make me a troll
  50. Re:Slashdot Canidate by khallow · · Score: 2

    leads to monopolism and vulture capitalism

    What's the case for your claim that libertarianism leads to "monopolism"? The ideology deliberately weaken government which is the both the most powerful sort of monopoly out there and the principal creator of monopolies historically.

    And what's supposed to be wrong with vulture capitalism? Capitalism has always been fairly good at disposing of dying businesses and obsolete capital. I think part of the problem here is arbitrary moral rules that don't actually help anyone.

  51. Re:Free Market? LoL by poity · · Score: 2

    Well, some would say that a political entity being "more tactful/less blatant about achieving its end goal" is "more insidious"
    http://it.slashdot.org/comments.pl?sid=2712605&cid=39277125

    --
    your thin skin doesn't make me a troll
  52. Re:Not corporatists by AK+Marc · · Score: 2

    But they are corporatists. They are just supporting Gulf States Toyota corporation, not Tesla Motors corporation. As GSTC has been around longer, is more cornyism than corporatism, but when two corporations are at odds, the decision won't necessarily be pro or anti corporatist, as you point out. So you have to look at the bigger picture, Tesla is a lone corporation, and there are multiple corporations (usually evil distribution corporations/middlemen trying to extract rent enforced by law, rather than provide any service or product for their income), so I'd say that the anti-Tesla Motors Corporation finding is pro-corporatist.

  53. Re:Slashdot Canidate by worldthinker · · Score: 4, Insightful

    Because the basic assumptions of Libertarianism are flawed. Libertarianism as expressed by Rand, and economic theories based on or expounded by Libertarianism are flawed from the beginning because it assumes people will always act rationally and without fraud. Hence the ACposter was right, there are 2 kinds of Libertarians.

    That is not to say that elements of Libertarian philosophy aren't useful in tempering over-reach by government regulators. For example, I think regulations strictly designed to limit competition such as limits on taxi vehicles should be reduced or eliminated. I think regulations that create undo barriers to entry for trades are unnecessary. For example, the state where I reside wants people who do hair weaving to be licensed as barbers which requires extensive training and apprenticeships. I think beyond the reasonable expectation that persons doing tasks that require "intimate" contact with people should be competent and not be a health hazard, the other requirements are designed as a barrier to entry and result in protected markets that do not function well.

    But Libertarians these days spend their time demonizing government on all levels, and not recognizing the role that government does and should play in our society. They do not recognize economic terms like "public good" "excludability" "Rivalrous" to distinguish between markets that can only be public and non-exploitable. Everything to them should be privatized. That is a flawed understanding of economics.

  54. Re:Free Market? LoL by AK+Marc · · Score: 2

    You don't seem to know what the invisible hand is. It a market correction. The US revolution was an action by the "invidible hand." The market was skewed (everyone was forced to pay taxes for services not received). So the market issued a correction. The invisible hand has been misused to justify all sorts of bad acts. Worse, the law has been used as a buffer/diversion of the invisible hand.

  55. Re:Slashdot Canidate by lgw · · Score: 3, Interesting

    I'm a libertarian and I believe none of those things you attribute to "Libertarians". You're stereotyping and confusing classic libertarianism with the writings of people like Rand.

    Only naive ideologs argue for "no government regulation" or "no taxation" or "privatize everything". It's a sophomoric position, easy to spew but it doesn't make any kind of sense.

    Classic libertarianism asks "how can we do that with a little government as possible". How can we have the set of communal services we want with as little government oversight, as little taxation, as little public ownership as possible and still make it work. How can we ensure free and fair markets with little fraud, but do it with the minimum government presence? Of the many ways we could provide public safety nets and ensure access to health care, which requires the least government participation?

    Solving real world problems requires trade-offs, and the extremes are always (ha!) the wrong answer. But view any government power as a negative in the assessment. We want some service or oversight, great, what the least cost way to get what we want, viewing centralized power as a significant cost?

    You're confusing that I think with people who don't want the services in the first place, and use "no government" as an excuse. There are very few such people, but they are noisy.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  56. Re:Slashdot Canidate by tipo159 · · Score: 3, Interesting

    Only naive ideologs argue for "no government regulation" or "no taxation" or "privatize everything". It's a sophomoric position, easy to spew but it doesn't make any kind of sense.

    That's nice to know. However, most of the people who I know who describe themselves as libertarian promote some combination of those ideas to me. Should I be telling them that they are not really libertarian?

  57. Re:Free Market? LoL by gmhowell · · Score: 5, Funny

    I want to be a corrupt crony, you insensitive clod!

    This is the internet, you're going to have to settle for being a corrupt brony.

    --
    Jesus was all right but his disciples were thick and ordinary. -John Lennon
  58. Re:Slashdot Canidate by Firethorn · · Score: 3, Interesting

    I'm also a 'moderate libertarian' here, and oh heck is "There are very few such people, but they are noisy." true.

    Classic libertarianism asks "how can we do that with a little government as possible". How can we have the set of communal services we want with as little government oversight, as little taxation, as little public ownership as possible and still make it work. How can we ensure free and fair markets with little fraud, but do it with the minimum government presence? Of the many ways we could provide public safety nets and ensure access to health care, which requires the least government participation?

    Very much so.

    Let's look at schools and prisons. Both are something that you can, in theory, privatize. However it's been my experience that while private schools(especially religious ones such as Catholic schools, and I'm an atheist) can often educate a child better for less money, private prisons tend to be a mess. Ergo - private schools are okay, I support vouchers, though you constantly have to monitor said private schools to make sure they start and remain effective. Prisons, on the other hand, need to be public - but there's a lot of space because an overly powerful prison guard union can drag down a public prison as effectively as corporate greed can drag down a private one. It's all about balance, because once you get into colleges 'for profit' schools suck majorly - delivering low value education(worse rates at jobs/lower salaries) at high expense. They spend proportionally more on advertising and such...

    I think it's because parents concerned enough to send their child to a private school, even profit ones, is a step removed, but they're there more or less constantly to do quality assessment. But I still prefer non-profits(not necessarily religious).

    I don't think it's too much to ask that we regularly review various programs for effectiveness. If it's not effective, it should be dropped. If it's not the most cost effective way to do something, why aren't we using them? Not everything is about profit, but look at our prisons - other countries and even some states within the USA have shown that an emphasis on reform, alternative punishments like house arrest & ankle bracelets work and can cut the time you need to toss somebody into prison for by 2/3rds while producing a released prisoner that's 2/3rds less likely to offend again. That's HUGE, and I have to ask: How can we afford to keep paying for our current system?

    --
    I don't read AC A human right
  59. Re:Free Market? LoL by Daniel+Dvorkin · · Score: 2, Insightful

    Also, a system corrupted by cronyism should not be confused with free market capitalism and should not be considered the natural end of free market capitalism -- it's simply a system corrupted by cronyism.

    Thank you for illustrating my point so neatly. Just as die-hard communists insist that real communism looks nothing like was practiced in the USSR, so do free-market fundamentalists insist that real capitalism looks nothing like what we have in the US ... both groups neatly ignoring the fact that in the real world, this is how their preferred system behaves. You can talk all you want about how it should work, or how you think it would work if certain conditions were met, but it doesn't make a damned bit of difference to how it actually works.

    --
    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  60. Re:Big oil by lgw · · Score: 4, Insightful

    "Invoice price" is entirely a marketing gimmick to make people think they got a great price these days. It works surprisingly well. It shows the skill of the salesmen when people genuinely believe they bought a car for less than it cost the dealership.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  61. Re:Not corporatists by GPS+Pilot · · Score: 2

    Corporatists support corporations in general, without picking favorites. You got close by saying this is more cronyism than corporatism. To hit the nail on the head: this is ALL cronyism.

    --
    That that is is that that that that is not is not.
  62. Re:Slashdot Canidate by iserlohn · · Score: 4, Insightful

    """Classic libertarianism asks "how can we do that with a little government as possible"."""

    Some issues here.

    First, it is Classic Liberalism. For the lack of a better description Classic Liberalism waned as a political force as implementation of its policies led to the Victorian workhouses. This led to Liberalism gaining a more social approach, leading to Social Liberalism which became the leading faction of Liberalism in the 20th century.

    It is Libertarianism (ie. Neo-Classical Liberalism) that is concerned with minimalising government intervention. Libertarianism is basically Classical Liberalism in new clothing.

  63. Re:Slashdot Canidate by RabidReindeer · · Score: 4, Insightful

    leads to monopolism and vulture capitalism

    What's the case for your claim that libertarianism leads to "monopolism"? The ideology deliberately weaken government which is the both the most powerful sort of monopoly out there and the principal creator of monopolies historically.

    And what's supposed to be wrong with vulture capitalism? Capitalism has always been fairly good at disposing of dying businesses and obsolete capital. I think part of the problem here is arbitrary moral rules that don't actually help anyone.

    There is an old business adage: "Nothing Succeeds like Success". It breeds corollaries such as "Nobody got fired for buying IBM". (Microsoft, for the younger generation).

    A successful business breeds a positive feedback process just as failing businesses tend to nosedive. As a business becomes more and more successful, it attracts more and more customers. It also can afford to negotiate for favorable supply contracts, buy up smaller competitors, and do other things that accelerate the growth curve even more by diving it an edge on the competition. Eventually, it gets so big that it can buy government on its own terms.

    It doesn't need government to get there. Government - with the sometimes exception of local government - actually prefers to avoid dealing with smaller businesses, so you have to be well on your way towards monopoly before you can even start getting governmental favors.

    And "moral rules" generally do help people. Otherwise they wouldn't exist. Even (or perhaps, especially) the ones that seem anti-common-sense. One of the most dangerous business fallacies is the pseudo-Darwinistic conceit that only the strong and the nasty survive. In the natural world which Darwin formulated his theories on, we have cute fluffy bunnies, delicate pretty butterflies and ape tribes which prosper because some members take care of others progeny instead of breeding themselves.

  64. Re:Oh good greif. (sic) by Smallpond · · Score: 2

    Protecting dealerships is not consumer protection. In MA we had to fight for a Right to Repair law which the dealerships fought tooth and claw.. Protection of dealerships by Franchise Laws is not pro-consumer.

  65. Re:Slashdot Canidate by TsuruchiBrian · · Score: 3, Interesting

    Should I be telling them that they are not really libertarian?

    yes

    They are no different than rich kids wearing Che shirts who think they are communists while they enjoy their life of starbucks, designer clothes, affluence, and consumerism.

  66. Re:Slashdot Canidate by lgw · · Score: 3, Interesting

    I find it works best to use "classic liberalism" when talking to those on the left, and "classic libertarianism" when talking to those on the right; otherwise people often dismiss you before even understanding your position. I mostly talk politics with people on the right, so that's the first term that leapt to mind.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  67. Re:Free Market? LoL by TsuruchiBrian · · Score: 2

    I would like to point out the false dichotomy of the outcomes of any social/political/economic syetem as "perfect utopia" vs. "complete failure".

    Even with it's flaws, the United States has been been a success story for capitalism. Yes there is corruption, etc, but compared to what came before (e.g. totalitarianism, fuedalism, etc), the US is like a utopia.

    I don't know where this idea that the free market requires no maintenance (i.e. that it "regulates itself") came from. It's true that the free market regulates it's own prices for goods and services, but that doesn't mean that it is the solution to every problem a society faces. I've heard people claim that everyone would become murderers and thieves in a free market. I don't think any sensible persons definition of a free market includes removal of a justice system.

    We can have a free market even if the government is in charge of preventing and punishing criminals and fraudsters. In fact it actually works better when people are able to make more informed choices due to removal of fraud and coercion.

  68. Re:Not corporatists by TsuruchiBrian · · Score: 4, Insightful

    If you are a corporatist it does not mean you want *every* corporation to control the government. It just means you want to be part of the group of corporations that does. In fact it is important that most corporations are losers to concentrate wealth at the top.

    A warlord doesn't want democracy. A warlord wants the world to be ruled by warlords. This doesn't mean he wants every warlord to succeed. He wants most to fail, so he can be as near to the top of the food chain as possible.

  69. State Of Retardation by b4upoo · · Score: 2

    Sadly, and although Texas has some of the nicest people I have ever dealt with, the legal and political system in Texas is a notoriously backward and dim problem that other states simply can not even take seriously. It is as if someone left the asylum doors open and they joined the government of Texas, became judges or lawyers in Texas and then were bashed in the head hard. Nothing short of an escaped lunatic who has suffered a major brain injury could be part of making or even tolerating the governmental and legal system in Texas. A serious rebellion in that state is a reasonable notion.

  70. Re:Slashdot Canidate by __aaltlg1547 · · Score: 3, Insightful

    He's talking about the only two kinds that ever existed though.

  71. Re:Slashdot Canidate by CrazyDuke · · Score: 2

    Agreed to some extent, it seems a lot of us libertarians cannot grasp that if an entity gains the power to run people's lives, it's a governmental entity regardless of whether or not it is officially recognized as one. So, instead they prop up some other megalomaniacal entity so long as it does not have the bad word written on the big club they beat you with.

    Maybe the delusion persists because it is self-serving to ignore the consequences of acting on such beliefs: Prop up a a favored dictator while pretending to improve the condition of society. And, instead, they are just hoping that this bully will beat the shit out of someone else for a change and maybe look the other way if they want to join in. I have seen some indications of this in many political/economic/religious movements.

    --
    Any sufficiently advanced influence is indistinguishable from control.
  72. Rent Seeking by brillow · · Score: 2

    Rent seeking is among the most dangerous threats to a free society. These greedy bastards don't want the right to make money, they want the right to make money forever without that position being challenged.

  73. Adam Smith wrote with a Sharpie in the men's room by paiute · · Score: 2

    The invisible hand of the free market better be holding a roll of visible cash.

    --
    If Slashdot were chemistry it would look like this:Cadaverine
  74. Re:Slashdot Canidate by dbIII · · Score: 2

    Why not just be more accurate and say it's a bunch of people with little in common other than they like the name and like to pretend to wrap up in the flag? It may be annoying if the utter batshit insane anarchist wrapped up in flag next to you says something to annoy people and they point back at both of you, but that's the consequence of association. Since it's about self-labelling Libertarianism is about all those things people complain about and more, and all those virtues you mention and more. There's no point in complaining if people are attacking a different part of the amorphous blob to the one you are in if you insist on using the label instead of going for one issue at a time. "I'm a libertatian" can be accurately seen as saying that someone advocates a return to Medieval Feudalism with the current rich as the lords and knights and zero social mobility on merit, or it can be just as accurately be seen as the exact opposite if you ask a different libertarian. The major problem I see is that the former have the resources to use the latter as useful idiots to push towards exactly the thing George Washington fought against - absolute power in the hands of a few landlords.

  75. Here's why that doesn't matter by dbIII · · Score: 4, Insightful

    In a libertarian system they end up being the defacto government and effectively use their intervention to stifle competition. It's feudalism once a generation has passed and social mobility based on merit would cease to happen. Have you got your patron lined up?
    When the rich have nothing to stop them creating barriers to entry for those that threaten to take away their riches it's only human nature for them to protect the livelihood of themselves and their families. Unchecked and you end up with feudalism.
    I really don't understand why so many Americans want to throw away what George Washington and others fought to give them. I suppose it's a good old American style confidence trick to hide such a thing under a name with "liberty" in it.

  76. Re:Slashdot Canidate by Moryath · · Score: 2

    "Free markets as a tool for economic efficiency"

    And you're one of the naive idiots who can't see how this necessarily leads to the "economic efficiencies" of monopolism and vulture capitalism.

    To be truly "competitive", a market has to be properly regulated. A "free market", in the sense the libertarians call for (laissez-faire capitalism) leads to the Gilded Age all over again. And those of us who have studied history understand how truly bad in all senses the Gilded Age was and never want to repeat the mistakes that naive, ideologically childish idiots like you would have us repeat.

  77. Re:Slashdot Canidate by TsuruchiBrian · · Score: 2

    I think these principles are quite open to interpretation, which is why many self described libertarians disagree on the specifics.

    I would say that at a minimum equality of opportunity means that there should be no laws mandated or protecting any kind of discrimination, and at most this might mean actively ensuring some basic level of access to things like education and healthcare.

    I don't think full blown equality of outcome could be considered a libertarian position (i.e. equally distributing wealth between everyone, or mandating that every school be public and equally funded, etc), although I do personally happen to believe in single payer universal healthcare.

    Where libertarianism starts to diverge from liberalism is when we get into this idea that in order to have equality of opportunity, you need to take money form the rich and give it to the poor. To the degree that this should happen is the primary disagreement. Regardless, this is why most views shared by libertarians are actually in common with those shared by liberals. They are very close on the evolutionary tree of political ideologies.

    There are lots of people nowadays, usually former republicans now calling themselves tea party libertarians that don;t really believe in things like marriage equality, ownership of your body, decriminalization of victimless crimes, etc. They just don't want to pay taxes. These people are not true libertarians. Not in some abstract sense, but because libertarians by definition believe in liberty. And these people don't believe in liberty (at least not in liberty for anyone but themselves). These are just greedy fuckers. I really don't like the idea of these people co-opting a term that incorrectly implies that they stand for liberty.

  78. Re:Free Market? LoL by ppanon · · Score: 2

    Market economic theory is based on the fundamental assumption that participants are rational actors interested in maximizing the personal utility of any exchanges. Since things like happiness obtained through altruism are not easily quantifiable and highly variable across the population, in practice they are generally ignored in most economic analyses. So the result is that most economic theories and models are predicated on selfish actors.

    --
    Laissez lire, et laissez danser; ces deux amusements ne feront jamais de mal au monde. - Voltaire
  79. Re:Slashdot Canidate by Cruciform · · Score: 2

    This is a personal anecdote so I can't accurately generalize against all Libertarians, but all those that I have encountered and discussed their position with really break it down to "what is the least amount of government that benefits ME".

    Maybe there are those with an altruistic bent, but under questioning I've yet to meet one.

  80. Re:Slashdot Canidate by Teancum · · Score: 2

    Only naive ideologs argue for "no government regulation" or "no taxation" or "privatize everything". It's a sophomoric position, easy to spew but it doesn't make any kind of sense.

    That's nice to know. However, most of the people who I know who describe themselves as libertarian promote some combination of those ideas to me. Should I be telling them that they are not really libertarian?

    Yes, you should insist that people who are anarchists admit that they are anarchists and not libertarians. It is also you that is ignoring the philosophy of a smaller government is something that captures a wide swath of people with a variety of other political philosophies in terms of how that is accomplished and how far to go with that scaling back of government.

    Mixed in with this are people (who I think are naive) that wish to simply eliminate government organizations completely. Since they are still pretty much fighting for the same thing... to cut back government... they often campaign and support efforts similar to other libertarians who simply don't like large government organizations running thing. There are even differences in opinions on what kinds of government services ought to be cut.

    Treating this as a monolithic philosophy with specific dogma is something that simply doesn't exist.

  81. Re:Slashdot Canidate by Jon_S · · Score: 2

    Are you one of the naive idiots that believes calling someone a "naive idiot" helps bring them around to your point of view?

  82. Re:Slashdot Canidate by VortexCortex · · Score: 2

    Most Slashdotters can understand that being a Liberal does not necessarily make one a Socialist or Communist. Why then do we accept the pigeonholing of all Libertarians as Anarchists/Anarcho-Capitalists?

    The answer is their lizard brains are taking a binary me vs you, or us vs them, or fight vs flight absolute stance, because it is more ancient and thus more heavily activated in association with competition and aggression. These I would not call human. A human is conscious of such cognitive bias in their decision making. A human knows that feelings and emotions are the result of triggers placed by evolution, and thus are great for deciding issues of mate selection and tipping us off to movement in the shadows; However, instead of ignoring the instincts a human will harnesses them and examines these impulses with their more recent ape minds and forebrains, learning to wield them as tools. A human realizes that in order to advance the species they must not let the slowly evolving ancient mental hardware hamper their faster changing cultural firmware and neither of these hamper their very quickly adapting cognitive software.

    You see, a human would assay the political landscape and more heavily weight current issues than past alliances, and weight far less the ideals pandering to primal drives (like the need for competition, stability, safety, and compassion -- or conservative, free market, regulative, environmental and health concerns). You see, the politician is exaggerating everything while pandering to your base desire to protect and provide for mates and children, regardless of if they are truly in danger or if the risk is acceptable. The politician also panders to your primitive instincts by exaggerating risks to financial ambition and market competition. They even peddle exaggerations to the compassionate nurturing instincts when exaggerating the very real strife of the lowest classes. Do not dismiss this political skill, it is a highly effective and dangerous tool; Do not think the politician foolish for using it as an undercurrent to further their actual goals. However, a human is above all of this nonsense; Humans will see the larger picture and prioritize those goals which appear to be currently suffering over those which are currently dominantly achieved in order to constantly seek equilibrium.

    A human would at times be aligned with Democrats, Republicans, Libertarians, or other parties. Humans can use all the parties as tools to further the human's own political goals. A human is a tool using creature. A smart human uses the right tool for the right job. Those with a tendency for acting lizard-brained could be cured of their false dichotomies and foolish absolutisms; However, it is not politically advantageous to educate the populous in thinking with their whole minds. The education system is ruled by those who would be threatened by decreased primal instinct influence. So, what should be 1st grader elementary school ethics, is ridiculously missing; The "humanities" should include a course on being human and harnessing of feelings, weighing them against logic, and presenting to youngest children the situations and teaching them first how to identify bias (and thus how to be human) long before teaching them other trivialities such as algebra or geography. None teach the young thirsty minds how to harness their brains and think for themselves, and so you all suffer.

    Once in college the young and idyllic are encouraged to ignore all feelings when doing "rational" thought -- and thus become more easy the victim to the ancient ancestral cognitive biases; Instead they should acknowledge the "He's attacking me!" feelings when one attacks their paper or point of view... In other terms: They rarely SYN-ACK, only SYN or ACK. The people have learned not to go screaming hysterically when they get spooked by the wind while walking down a dark road, but have failed to harness such impulses with cognitive powers: "Wait, did my subconscious detect so

  83. Re:Slashdot Canidate by TsuruchiBrian · · Score: 2

    I see the temptation to abandon a label once it has become tainted, but I feel like this would leave me constantly needing to change labels.

    Look at the way the republicans successfully made "liberal" into a dirty word, forcing democrats to call themselves "progressives" instead. I think the battle to prevent a label you care about from being subverted is a battle worth fighting.

    Speaking of which, "liberal" was the first label for the libertarian ideology, that was then assumed by neo-liberals, before they allowed neo-conservatives to turn it into a pejorative, and abandoned it for "progressive". I'd be happy to reclaim the "liberal" label for libertarianism. I would proudly call myself a liberal. I don;t think neo-liberals are bad people or anything, but I think the term liberal suits libertarians better, considering it's root is from the latin word form freedom.