Saving the Lada

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


SAVING THE LADA….The government plans to bail out the country’s big automakers and the public is unhappy over the deal. Old news? Sure, except it’s happening in Russia too:

The dozens of demonstrations that have cropped up across Russia in recent weeks haven’t been particularly big. However, they have been significant as the first notable show of widespread dissent in the near-decade since Prime Minister Vladimir Putin cemented his hold on power.

Organizers say they will keep up the pressure unless the government reverses its decision to raise taxes on imported automobiles.

….The tax hike, which will be determined for each vehicle based on a complicated formula, will drastically increase the cost of foreign cars and trucks. Vehicles older than 5 years will be slapped with a duty of at least 70%, making their importation unprofitable.

This dynamic is playing out everywhere: governments all want to bail out their auto companies, but not every auto company can survive. There’s just too much vehicle manufacturing capacity in the world, and there has been for a while.

However, this story also suggests that, against all odds, it may be the consumers of the world who prevent a mass outbreak of new beggar-thy-neighbor tariff rules. National governments understandably feel a lot of pressure to protect their local industries, but it might turn out that their publics don’t really agree. Americans don’t like American car companies all that much, it turns out, and Russians don’t like Russian car companies either. Siberians would rather buy a Toyota than a Lada.

This might not turn out to be case for every industry, of course, but I wouldn’t be surprised if it restrains central governments from going too far down the protectionist path. Imports are just too popular with the unwashed masses.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

payment methods

We Recommend

Latest