Besides Tesla, What Other Products Will New Jersey Ban?

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NEW YORK ( TheStreet) -- If New Jersey is to be consistent and ban Tesla  from selling products directly to the consumer, the legislature had better get busy. Yesterday the N.J. Motor Vehicle Commission voted to ban the electric car maker from directly selling its automobiles to the public in the state. The list of products being sold direct is long indeed.

Take for example Apple  and Microsoft . Both have stores where they sell a long list of Apple and Microsoft products directly to the consumer. Would New Jersey be better if Apple and Microsoft couldn't have their own stores?

Let's say that Google  wanted to open stores to compete with Apple and Microsoft. Would New Jersey seek to ban this attempt?

What about cellular communications services such as those offered by AT&T , Verizon , Sprint  and T-Mobile USA ? They are currently sold by a maze of resellers, large diversified stores, online outlets and the cellular network companies themselves, directly. Should their direct sales be banned?

Every New Jersey voter knows at least two things:

1. Computer stores were always a major nightmare before the advent of Apple stores starting in 2001.

2. Car dealers remain a major shopping and service nightmare for the consumer today. Meanwhile, people love buying from Tesla directly.

Computer companies and cellular network operators have two things in common: They sell directly to the consumer, as well as through resellers. The customer can choose. Has this retarded growth in the computer and smartphone industries, or has it been a good thing for the consumer?

Every free-market economist over the decades and centuries had pointed out that existing businesses always try to prevent the establishment of new competitors. Old computer shops and cell phone retailers also didn't like that Apple, Microsoft, AT&T and Verizon opened stores to sell directly to the consumer.

Yet, the consumer is now better off because of allowing diversity in the supply of these products. We always make fun of crazy laws in other countries, that prevent their people from enjoy a higher standard of living. From high taxes to laws restricting store opening hours, consumers in some countries are impoverished compared to us Americans.

It's not as if Tesla and other electric cars have not been receiving significant government support in New Jersey. Electric cars are exempt from New Jersey 7% sales tax. On a $100,000 car, which is close to Tesla's average sales price, you can figure out how significant this is.

I am not only a complainer, however. I propose actual solutions. In this case, I have the solution for how to create a rational automotive market -- in New Jersey and elsewhere.

The solution I am proposing is an exchange: Car companies will be allowed to sell their cars in any manner they please, in exchange for an end to all subsidies.