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Drew Bixby


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Tesla was blocked from selling cars in Texas. Is this a bad sign?

In the book Why Nations Fail, (http://whynationsfail.com/) the authors argue that inclusiveness is what made the US great and extractive-ness is what makes nations like Venezuela fail. Very generally, inclusiveness means everyone has an equal opportunity to compete and the laws support such an environment. In contrast, extractive-ness is an environment where rules, over-regulation, political favors, and financial weight give preference to certain groups over others.

This case with Tesla seems very "extractive"/non-iinclusive by their definition. Is this just isolated or is this a bad sign for the state of things in the US?

In case you are not aware, here is a brief synopsis of the Tesla case:


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    Jun 18 2013: Good points. As you imply, I wouldn't characterize the Tesla situation as a crisis, but the question is whether it is an indicator or a "canary in the coal mine".

    I agree that it is getting harder to do business in many industries and areas. The difficult part is that most of the laws are very well-intentioned to provide safety, security, and presumably protect consumers. I just think the cost of that safety and security is potentially more than we realize in it's effect not only on the economy, but on inclusiveness.
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      Jun 18 2013: Hi,
      I am not sure that Tesla qualifies as your canary. I would put the Boeing factory as a canary. California has raised fees and taxes on business startups, that could be a canary. In fact, as we look around the country,
      we may be confronted by a flock of canaries.

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