Alternatives to Legalization

There are a at least two reasons why it would be good to legalize marijuana all across the country. The number one reason is that legalization would take away the profit margin that makes the illegal drug trade attractive.  The second is that no law is enforceable if not even a plurality of the population is offended by the behavior a law is designed to prohibit. The cost of efforts at enforcement is enormous and people disobey the law anyway.

Does cannabis have medical uses? Probably it does. That is an additional reason.

What is gained by having a completely ineffective law on the books as it can serve as a social statement for people who want to be seen on the right side of the issue. Laws which serve only as social statements are extremely expensive to maintain just for that one advantage.

All of that being said, that still does not mean that outright sudden legalization is a good idea. Why? It depends upon the terms of the legalization. There are cannabis users who just want it legal right now no matter what the cost. Deferred gratification is a foreign concept that is not even understood by today’s youth and most elders as well. When passing or repealing a law, it is best to ask the question, “and then?” before making the change.

The important question in legalizing marijuana is, what kind of bureaucracy is going to be born and maintained for the next several centuries? Is it legalized so as to serve as a source of tax revenue? Are laws going to be passed so that profits on the industry only go to the top of the food chain? The way legalization is occurring state by state is not a good deal and may end up restricting freedom more than any misguided statutes.

There are approaches other than outright legalization which would prevent the growth of a huge bureaucracy. Texas is not a friendly cannabis state. Suppose people across the state petitioned their city and county governments to pass resolutions directing local law enforcement agencies to prioritize enforcement efforts. Enforcing cannabis laws could be put so low on the list that the law still served as social statement for folks who just want to be seen as opposing usage. But, law enforcement could focus on more serious violations of other laws.

The solution that would serve recreational users the most would be to make possession punishable with a $49.99 fine and still leave cannabis as illegal. Most cannabis charges are added on to other crimes like shoplifting or disturbing the peace. With only a small fine as punishment, the expense of prosecution would be limited and government could still benefit from the revenue generated. It is rare that anyone is charged for possessing marijuana only.

Anytime a law is passed or repealed, it is not done for the benefit of the overall population. Laws are more likely to be passed to create feeding frenzies by those who will benefit by the regulations or the income opportunities created. Governments are interested in sources of tax revenue. The way cannabis is being legalized now a high price to be paid for all products is guaranteed. This is not by accident. Where profit is concerned, all who have political power are accommodated first.  Make regulation stiff enough and new opportunities for organized crime are created.

Government is defined in people’s minds as a benevolent entity working tirelessly to make everyone’s life better. In reality it is a place to go to exploit problems and make profits by getting self serving laws passed.  Any time laws are passed, changed or repealed, there is a change in the bureaucratic structure. Just because people get what they want in the immediate time frame does not guarantee they will be better off over time.

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Comments can also be left on the Fantasy Free Economics Facebook Page.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

 

 

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Central Planning of the United States of America

Stimulus is central economic planning. QE was central economic planning. Saving the country with emergency bailouts is central economic planning. Healthcare is centrally planned. When the economy failed in 2008 more central economic planning was ushered in.

So what does central economic planning consist of. We now have centrally planned stock prices. Since 2008 what has central economic planning consisted of? Knock the bark off the plan and look at raw reality. The stimulus beginning in 2008 has consisted of elevating stock prices and that is it.

Central economic planning is mandated in the Full Employment Act of 1978. What do we know about central economic planning? It destroys wealth and income of most everyone while boosting the wealth and income of the politically powerful. If there is an exception in all of recorded history, tell me. I can’t find one. Does anyone mind? Hardly a soul.

I overheard a conservative talk show host recently ranting about the greatness of the United States. He was chastising others who believe otherwise. This conversation was going on while 100% of bills on which congress votes are there expressly to rig one market or another or to transfer wealth and income. My question to the talk show host would be, what is so great about that procedure? What makes a country great or less than great is how the citizens spend their time and energy. What central planning is always is using the government as a means of bypassing the free market system for personal gain. Once that approach becomes a national standard, there is no more free market.

Americans are good with central economic planning. No matter how bad things get, they always want more of it. There are a handful of us out here who would prefer to reverse the situation and start moving back to the free market standard. Our number is statistically insignificant. Out of all of the conservative icons in the country, not one has suggested repealing a single law or closing even one government agency. Americans really do want big government and that is what we have. Donald Trump might very well turn out the be the most prolific central planner of all presidents up to this point. Any hopes that he would turn out to be a free market guy have gone out the window.

There seems to be a silent consensus that the current recovery which has been the result of a centrally planned bull market in stocks about over. Some might naively suggest that when the economy collapses Americans will have learned their lesson and demand a free market system. That won’t happen. Instead they will cry loudly for more central economic planning. Their elected reps and leaders will oblige them by creating more stimulus plans which will further impoverish ordinary people.

The important thing to remember is that since Americans really do want a centrally planned economy, there really isn’t much that can prevent masses of increases in poverty and misery. To turn the country around folks have to want something different. How do I know what people want? I just watch what people do. What a person does is indicative of a person’s deepest beliefs. If there were conservatives anywhere in the population there would be ongoing conservative initiatives and there is not one in the entire world.

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Comments can also be left on the Fantasy Free Economics Facebook Page.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

 

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The Phantom Bear Market

Everyday we all read articles pointing to statistical anomalies that look like dark ominous storm clouds overhanging the economy and the stock market. It is commonly acknowledged that GDP, employment numbers and all government statistics can be whatever they need to be on a given day. Accounting laws are not being enforced, so earnings reports are assumed to be quite flexible. The statistics we are likely to see are the ones needed to shape public opinion. Every news story has an agenda which is normally to shape public opinion. Continue reading

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Good News is Coming Soon

Very close to Labor Day, September 3, five days before or after, good game changing news will hit the press and the airways. What kind of good news? Certainly the kind that is designed to stimulate the good citizens into doing things that are profitable to those who pay to have news whipped up.

Odds are the trade war will be called off. Chances are that all of the issues with Turkey will be suddenly resolved. Iran and the United States might suddenly resolve their differences. Continue reading

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The Game of Dominance and Subservience

Would it not be nice to have a board game called Dominance and Subservience? Perhaps if enough people played the game, it would come to light that life exists in a system of dominance and subservience.

It is the job of each species to dominate and make use of as many other species as possible. Dominate all of the other species and have them serve mankind. They don’t all get a bad deal. Dogs volunteer to be dominated and get a decent deal in return. Dogs end up trading freedom for comfort and are content when able to do so. Continue reading

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Are You Out Mooched?

Governments form for the loftiest reasons. Who would feel safe without a government with armed forces? Without government who would guarantee rights of citizens and administer justice? Questions like these are taken into consideration when governments are formed and organized.

After a government begins, these noble considerations give way to the instinctive propensity of predictors to attempt to live off the efforts of others. Continue reading

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How Corporate Insiders are Paid

The public gets upset when learning just how high corporate salaries and bonuses are. These high amounts don’t constitute a state of being overpaid. What the public doesn’t get is that these amounts pale in comparison to what corporate insiders steal from the country. Continue reading

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Can the United States Survive a Bear Market?

If the stock market falls, it will take the rest of the economy with it.

Without rising asset prices, there would be no economic recovery. The model used for causing economic activity is the “If we build it they will come.” model. The idea is that if the wealthiest of the world’s citizen are enriched when the value of all they own rises independently of earnings and everything else, the recovery will extend all the way to the bottom of the food chain. Does the logic of this sound solid? If it does, I will remind you that the logic behind a chain letter sounds appealing. Continue reading

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For Profit Legislation

I have been explaining that all enterprise is for profit. The difference is in who gets the profit. Single payer medicine is for profit. Obamacare is for profit. Free market medicine would be for profit. This is all because when government runs an enterprise the imaginary incentive to serve is assumed to be present. Every enterprise, government or free market is for profit because self interest is the only incentive in play. With respect to private charities they range from mostly non profit to almost entirely for profit. The label put on an enterprise doesn’t mean much. Continue reading

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As The Poor Grow Poorer

The question is not so much how the poor are faring in the United States. The Question is how the poor are faring all across the globe. The poor in the United States have been losing  ground economically for a number of decades. Worldwide, the poor are much better off than they were twenty years ago. American consumers are lulled into believing they are entirely necessary in order  for corporate profits to grow. They are not. The growth in incomes of the poor worldwide more than offsets the loss of buying power of the poor in the United States. Continue reading

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