Utah's "Too Big to Fail"--the New Car Industry

And YOU are the victim!


Sadly, Utah has chosen a pet industry to shower favoritism on in one of the most egregious examples of crony capitalism in
the nation, and while doing so it has picked certain cities to be winners and losers.  We are barely scratching the surface of exposing this, but the resistance of one of the strongest lobbies in the state reveals our efforts must be a real threat to the way they like things.  

Yale recently studied the protectionist laws put in place to favor a few business owners in our state, likening it to anti-trust violations. http://goo.gl/kzeDK3 Utah has allowed a handful of new car dealers to operate without competition in a relative marketplace for 25 years.  This results in artificially inflated prices of automobile sales and service.  It concentrates massive sales tax revenues in only a FEW cities across the state, while locking out MOST cities from this viable economic prospect.  We're talking 14% of the state's sales tax revenue!!!  That pays for a lot of streets, public services and education efforts in the few favored cities.

We have a big uphill battle to inform the citizens of Utah that a former legislature and governor created a series of laws to supress the free market regarding new auto sales.  It is incumbent upon our current legislature and governor to act consistent with their claims of being conservative, free market supporters.  

A few legislators and I are taking it on, but it will likely take a few years to peel back these cushy protections.  Here are some examples.

1. a new car dealership cannot locate within 15 miles of an existing one of the same make.  In other words, the State Street CarTel in Salt Lake County locked up mountain range to mountain range for themselves.

2.  a new car dealershop cannot locate within the same county as an existing one of the same make without first asking "Mother May I?" of a board made up predominantly of existing competitor dealers.  In other words, imagine McDonald's having to get permission from Burger King to locate within the same county.



Related articles:

City Officials Hoping For Legislative Help In Auto Dealership Prohibition, West Jordan Valley Journal:  http://goo.gl/23xC10

A Tale of Economic Protectionism, Car Dealerships, and the Utah Legislature, Libertas Institute: http://goo.gl/fW9Duw


Why George Soros, Warren Buffett and Bill Gates want auto dealerships, Fortune:  http://for.tn/1K5zCsN 

Why You Can't Buy a New Car Online, Mother Jones:   http://goo.gl/Iks1JG



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commented 2015-07-15 17:55:43 -0600 · Flag
I don’t know if I’m a conservative….I suppose I am.
I don’t know if I’m a Republican….I suppose I am.

One thing I do know….the more I attack this TESLA experiment on our Children…the more God let’s me know I’m doing the right thing….and so I do not stop. And I know exactly who protects this experiment…this complete failure of our society.

Actually, once I thought that perhaps I have done enough, that I have informed a sufficient number of people, and that I should just go back to my normal life and enjoy every moment with my family…..but on that day I was so very much ashamed of ever thinking that. You see, the day I thought about quitting, my two young boys started playing with a young girl in a waiting area in a hospital…my older son noticed that she was a patient and he asked her what was wrong……that was the day I was so very angry with myself for even thinking about quitting….God will not have that problem with me again.
commented 2015-02-16 19:49:36 -0700 · Flag
How many of the same manufacturer’s do you think is acceptable within a 15 mile radius? Ford has: Westland, Ed Kenley, Performance (both bountiful and tooele), LHM Super Ford, Henry Day, LHM Ford/Lincoln, Ken Garff American Fork. All within a 10 mile radius.