Monday, April 22, 2019

Regulation, taxation, prohibition, marijuana, Venezuela, and more

Regulation and taxation have the same effect as prohibition, by criminalizing otherwise ethical activity that will not cease or abide simply by laws saying so. When there exist black market activity, that is, any illegal economic activity among unanimously agreeable participants, it is always indicative of government's powers exceeding individuals' preferential willingness to tolerate and/or financial capacity to sustain within legal bounds. The mistake repeatedly made with dire consequences; to increase government's enforcement.

The Netflix documentary Murder Mountain side-noted the recent difficulty marijuana growers (in Humboldt County, California, where I lived for 2 years as a kid) are having per operating under the new umbrella of legalization due to cost of regulation, taxation, as well the array of fees levied by state and federal agencies. The unintended consequence; the return by some to black market operations. The equation is as simple as it is amoral. When the cost to operate legally reaches a critical lost versus gain, then operating illegally becomes the next logical consideration by assessing future risks of encountering government enforcers against past costs of obeying government bureaucrats. This is true whether a marijuana grower, building contractor (i.e. paying cash versus check), shopkeeper, truck driver. Equally true for non-profit organizations so same goes for a pastor, director, chairman, board member, etc. each with their own preferential willingness to tolerate and/or financial capacity to sustain.

When visiting Venezuela in 2008, particularly the city of Maracay, I witnessed exactly the kind of black market activity caused by government's excessive control of the economy. So widespread were the ill effects, so were the illegal economic activities as widespread, operating in plain view. Streets and parks were crowded by shoe shiners, vegetable farmers, laundry services, nail polishers, and more, all illegal in some measure. One outlaw merchant told me it was much cheaper to pay off the local police (who actually protected them by the way) than to pay government's taxes and align with government's regulations.

Americans would be wise to take note, by supporting candidates proposing rescission, not further legislation. Legislation to fix past legislation, merely perpetuates government's well established complexities and inconsistencies. The solution towards economic well-being is to rescind, rescind and then rescind more.

Come let us Reason (Is 1:18). Peace is always a Choice (Mt 5:9).
Study, Ponder, Labor, till last Breath (2 Tm 2:15 / Cl 3:23).

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