Why can't any car maker just make a good cheap basic car?

Safety requirements, emissions requirements, and the the consumer's expectations for comfort and convenience items all conspired to drive up the cost and size of the car. With that said I would've call a Fiat 500 or Mini "huge" by any standard. If you can do without A/C, power windows, a radio,and other comforts, then you can get a Nissan Versa or Hyundai for less than $12,000 new. Also cars aren't that expensive when you factor in inflation. Of course you're not going to find a new car for $4000 anymore but you're also not making 50 cents an hour anymore either.