Tesla Model 3 is great, but it isn't exactly a progress

TESLA-MODEL 3/

Tesla Inc’s new electric car has debuted to rave reviews; one writer called it “the most important car in the world right now.” In general, the commentary on the Model 3 has suggested the product delivers on its promise. Solar panels are falling exponentially in price, and there are periodic bursts of good news on the quest to develop a more durable and cost-effective battery. All of these developments would boost the prospects of green energy.

You might think the US productivity slowdown is finally ending, but unfortunately the news isn’t as good as it first seems. Instead, we are specialising in a new and sadly necessary practice of what I call “defensive innovation.”

Defensive innovation is when you create a new product or capability to protect yourself against an impending disaster, such as the worst scenarios for climate change. It’s important, of course, to practice defensive innovation, but don’t confuse it with progress. The defence only stops your living standards from falling.

The electric car is not entirely a defensive innovation. It may be zippier and fun to drive, with a new driver interface. Still, the truly exciting element of the electric car seems to be its potential for limiting carbon emissions and other forms of air pollution.

Driverless cars will save lives and ease commutes. But again they are a defensive product, as otherwise traffic congestion will be much worse. Read More

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