Comment Re:What is "oversupply"? (Score 1) 147
What exactly does it mean to "oversupply" something? The only way I can interpret that is they make so many cars and batteries that inventory hangs out in warehouses, unable to be sold at any price.
That inventory does not always hang out in a warehouse. It is often sold internationally, quite often below cost, just to get it off the books. Government subsidies offset some of that loss.
It is good for the consumer in the short term because it drives down the price of goods. But in the long term, if sustained, it can undercut local competition, driving them out of business. That can result in job losses, higher prices down the road due to the lack of competition, and becoming dependent on a source that could dry up due to political maneuvering.