One of the central tenants of conservative principles is that the free market is the best mechanism to promote innovation and efficient exchanges between parties. We find it interesting that so called “conservative” Tara Durant was a co-sponsor of HB 1469. HB 1469 contains an anti-free market provision that prevents the direct sale of vehicles from manufacturers to consumers. It requires the automobile dealership to serve as the middleman.
Why is this a problem? The law strengthens the artificial monopoly for car dealerships that stifles the efficiency of the free market. The dealership serves as a mandatory middleman instead of allowing direct sales from the manufacturer to the consumer. By promoting HB 1469, Durant artificially and unnecessarily raises the costs for the consumer.
Why would Tara Durant promote anti-free market policies? We think Durant was bought and paid for by her donors in the auto dealership industry. On VPAP, Durant has received $10,000 from the Pohanka Auto Group, $10,000 from Tim Pohanka himself, $7396 from the VA Auto Dealers Association, and $5000 from Michelle Radley. There so happens to be a Pohanka and a Radley that operate car dealerships in Fredericksburg. What an amazing coincidence. Thats over $32000 in donations from car dealerships in 2022 and 2023.
Dealerships can make the argument that they are important in the sales process to the consumer. If that’s the case, why is a law necessary to maintain their monopoly status? Could it be that dealerships are afraid of market innovation that would cause them to go out of business?
The reason the free market produces innovation and wealth is because its efficient. Party 1 has something they want from Party 2. Party 2 has something they want from Party 1. Both parties voluntarily make an exchange. Both parties are now better off. When you inject a middleman propped up by a government law, you get higher costs for the consumer because the government interferes in the voluntary exchange mechanism of the free market.