Three Cheers for CAPITALISM
The private sector is where innovation occurs and wealth is created. PROFITS, the reward for doing this well, are ONLY POSSIBLE through investments in capital and human effort.
Toyota Unveils ‘An Engine Reborn’ with Green Fuel Amid Global Shift to Electric Vehicles
Subaru, Toyota, and Mazda Commit to New Engine Development for the Electrification Era, Toward Carbon Neutrality
Toyota’s new strategy are lean compact engines designed to operate on green fuels such as hydrogen and bioethanol. These engines can also be integrated with zero-emission electric motors in hybrid configurations. Toyota’s Chief Executive Koji Sato emphasized the importance of this development in the company’s journey towards carbon neutrality.
“The engine is optimized for the electrification era,” said Sato, expressing confidence that this approach will help the world achieve its environmental goals.
In a show of unity, Toyota’s domestic partners Subaru Corporation and Mazda Motor Corporation joined the presentation. Both companies are developing ecological engines to meet stringent future emissions standards. This collaboration, dubbed a “multi-pathway workshop,” highlights the shared vision of these automakers.
News like this gets me very excited.
While government planners delude themselves with dreams of an endless supply of electricity to power our battery-operated vehicles, Japanese automotive corporate giants have quietly innovated new ways to keep the internal combustion engine alive AND do so under state mandates for “carbon neutrality”.
Every Economist understands the concept of “creative destruction” which is explained here and the process summarized below:
Productivity improvement depends upon economic transformation as well as technological innovation… results arising from changes within businesses and also from resources flowing between them.
Technological advances are introduced either through the internal restructuring of businesses or by the external restructuring brought about through business churn and the disappearance and creation of new sectors and industries.
Factors of production – jobs and capital – shift from lower value-adding activities into higher value-adding ones. In this way the innovations that drive up productivity diffuse across the economy. This reallocation of resources is the prime mechanism by which creative destruction promotes productivity.
Capitalism’s albatross.
Capitalism has done what Capitalism does best.
Capitalism innovates, produces new products or improvements to old ones, and does so for a profit generated by countless customers who pay voluntarily for the resulting product development efforts. This “An Engine Reborn” is a perfect example of the best feature of Capitalism left to its own devices.
Regulations do what regulations do best.
While allegedly serving “the public interest”, regulations impose a quagmire of rules and barriers that generally stifle innovation. Regulations also justify the expansion of the regulation enforcement workforce and public sector union memberships at great expense in taxation to citizens.
“Out of sight, out of mind” is the idiom that comes to mind when I think of the millions of government administrators who carry out their enforcement duties out of view from within the opaque walls of monolithic government buildings.
Questions to ponder.
Why were government planners not aware of the engine research undertakings of Toyota, Subaru and and Mazda so they could take these innovations into consideration when defining regulations for the transportation sector? Their myopic focus on EVs is disgraceful, but so is their myopic focus on green-house gases in the Climate Change Crisis Theory boondoggle.
Why aren’t Canada’s politicians and regulatory bodies rolling out the red carpet for these new engines. These innovations are game-changers and perfect topics to promote for every public official who has grand-standed his or her desire to save humanity from the burning of fossil fuels. This news should be on the “front page” of every media venue in the world and Greta Thunberg should be singing the praises of Capitalism for this ground-breaking technological innovation.
Can we expect Justin Trudeau and Steven Guilbeault to announce an national strategy to welcome this Japanese engine technology to Canada? Will they establish a policy environment that will attract and encourage Toyota build engine manufacturing plants here. The high-tech jobs alone would be reason enough to roll out the red carpet for those three automotive companies. The taxable profits, knowledge sharing and the creation of a whole new manufacturing segment in Canada are also compelling reasons to do so, but I guess these advantages may not occur to Justin who studied and taught Drama classes.
Spread the good news.
If you happen to know Pierre Poilivre personally, please ask him to raise these questions in Parliament. I am sure every Canadian voter will be eager to hear the Liberal and NDP response.