The idea of capital is exemplified in at least two competitive forms, such as:
- Petroleum based fuel
- Electricity
If transportation is demanded by people then people will pay for transportation fuel.
Which fuel is less expensive than the other, and how are those costs determined at any moment, and what happens to the higher priced fuel when more people convert to the lower priced fuel?
One of the plans for Tesla is already well underway in California. At the local restaurant there is free rapid charging stations for Tesla motors Model S automobiles.
The infrastructure is already being built.
Rolling out a competitive Volkswagen (people’s car) may not be the best next step, for some reasons, if not for other reasons.
Which Taxi service will be converting to electric once the petroleum costs render those Taxi services non-competitive?
How about UPS, Fed X, and any delivery service dependent upon light transportation vehicles and associated costs of fuel.
Just recently in California the subsidizing of corporate Power/Utility/Electric monopolies was cut back and the statutes demanded that producers of electricity, at homes, would be reimbursed by corporate electric monopolies for home grown electric production. The statute previous to this change allowed the corporate electric monopolies to sell a home owners excess Solar electric production and keep the profits without reimbursement to the home owner. That will tend to drive down electric prices in California as more and more Californians are converting to home grown power.
Even if petroleum prices drop, and keep dropping, the electric power competition is also dropping, and typically at a faster rate.
There is an economic law at work that can be expressed in one sentence.
Power produced into oversupply reduces the price of power while purchasing power increases because power reduces the cost of production.
Power is a capital good that operates in economy in the same way as legal tender; without the “unintended consequences” known as “inflation,” or “quantitative easing,” or “austerity measures.”