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The situation with car dealerships is a quagmire. I'd suggest a broader, simpler, and probably more politically viable solution would be a law requiring truth i
by Tloewald 11y ago
The situation with car dealerships is a quagmire. I'd suggest a broader, simpler, and probably more politically viable solution would be a law requiring truth in advertised prices:
If you advertise something as $X then that is the maximum total amount you pay (tax-inclusive, all fees, etc.) Almost every other developed country does this (except for hotel stays and some large ticket items, like houses and -- ironically -- cars, but we can do better, right?)
Now, I can imagine a sudden wave of protest -- but wait, what about state-wide or nation-wide advertising campaigns -- this happy meal for only $2.99? Sales tax varies from county to county, and then there are crazy exemptions, tax holidays, etc.
EXACTLY. If you believe in markets then you should, at minimum, believe in price transparency. (Free markets assume perfect information -- how perfect can your information be if you can't even figure out the true price?) If this puts pressure on states and counties to simplify their tax rates (under pressure from businesses) then GOOD.
If the prices that get advertised have to be real prices you get a huge improvement in market behavior -- from real estate to healthcare to cars to food -- immediately. And it will effectively demolish most of the issues with car dealers since they'll need to quote actual prices.