The issue with treating a car like a normal good is that there are positive externalities. Sot he customer (the one buying the car) doesn't capture all the good that is provided. There's value in having electric cars, cars which have better MPG that pollute less, cars with safety features that prevent crashes (even a single vehicle crash in a populated area massively slows down traffic), cars with safety features that protect passengers who weren't the customer, cars that are less likely to injure people who will have to depend on government provided healthcare if injured.
I could apply this to a book, a video game, a tv, a computer, a smart phone, an internet connection, a bicycle, clothing, food, and even housing.
The issue with treating a car like a normal good is that there are positive externalities. Sot he customer (the one buying the car) doesn't capture all the good that is provided. There's value in having electric cars, cars which have better MPG that pollute less, cars with safety features that prevent crashes (even a single vehicle crash in a populated area massively slows down traffic), cars with safety features that protect passengers who weren't the customer, cars that are less likely to injure people who will have to depend on government provided healthcare if injured.
I could apply this to a book, a video game, a tv, a computer, a smart phone, an internet connection, a bicycle, clothing, food, and even housing.