The Capitalist Investor - Episode 140 It’s called the Inflation Reduction Act but as we expected, it’s name hasn’t held up. Shortly before passing the legislation, electric vehicle companies announced they would be increasing their costs – stripping the act’s intention and the $7500 EV tax break it included. On this week’s episode of “The Capitalist Investor,” Derek, Tony, and Luke talk about the nightmares that come when one rushes a process and cuts corners: EV agendas, tax breaks, and government spending. Episode #140 also includes a new special segment to reflect the state of today’s society, “You’re Outta Here.”Outline of This Episode:[2:20] Supply chain nightmares came true [5:20] Unfolding the EV tax credit [7:40] Reenvisioning the tax system [12:50] Introducing “You’re outta here” Episode Summary / Post EV prices steepen, but who would have predicted that, right?President Biden signed the Inflation Reduction Act into law Tuesday, allocating more than $300 billion to address climate change and greenhouse gas emissions. The act included an incentive to push more people to buy electric vehicles, sparking the EV revolution the Biden administration has been calling for. But if you look at the last two years, introducing more money into the economy hasn’t quite reduced inflation.The new legislation includes a $7,500 tax credit after the sale for new EVs. Shortly after the act was signed, electric vehicle companies enacted new price changes to the costs of their vehicles. Did anybody see that coming? We did.Whenever $300-400 billion tax breaks are given, prices go up. Incentives to purchase these electric vehicles just increased their demand – companies simply just reacted to that when they raised their prices.While simple demand economics is at play – so is a supply crisis. We’re still in the middle of a supply chain nightmare and electric vehicles are not an easy product for car manufactures to make; the U.S. isn’t yet fully equipped to react and produce for the demand the bill just sparked.This new legislation is already doing the opposite of what it’s supposed to do – increasing cost and increasing inflation. “You’re Outta Here,” a segment for those keeping up with weekly cancel culture Everyday there’s something new that people are “canceling.” Cancel culture used to flood the headlines just once in a while, but now it’s a weekly basis. The state of how people are in today’s world is a reflection on how much they try to cancel what’s around them: people, arts, teams, companies, brands, and an endless amount of other possibilities.We can’t believe all the things getting canceled every day – there’s enough that one can do a weekly roundup and still not have enough time to get through the whole list.This week’s segment pays attention to the cancellation of Monkeypox – not the virus itself of course, just the name – and Dodge Chargers and Challengers.Until cancel culture ceases, “You’re Outta Here,” is a segment to keep up with. Connect With Mark TepperTwitter: @MarkTepperSWPFollow Mark on LinkedInSend Mark a message hereThe SWP Connect YouTube ChannelConnect with Derek GabrielsenTwitter: @DerekGabrielsenFollow Derek on LinkedInSend Derek a message hereCheck out Derek’s YouTube channel!Connect With Luke LloydTwitter: @LloydBoyLukeFollow Luke on LinkedInSend Luke a message hereThe SWP Connect YouTube ChannelConnect with Tony ZabiegalaTwitter: @TonyZabiegalaFollow Tony on LinkedInSend Tony a message hereThe SWP Connect YouTube channel!Send your questions and comments to us at info@SWPConnect.comSubscribe to The Capitalist Investor
