Posted tagged ‘Black Markets’

Must Reads For The Week 4/20/19

April 22, 2019

“The coordination of men’s activities through central planning or through voluntary cooperation are roads going in very different directions, the first to serfdom and poverty, the second to freedom and plenty.” – F. A. Hayek

EARTH DAY

I have posted this video before. Haven’t found one that’s better.

 

On Earth Day, Let’s Celebrate The Benefits Of Fossil Fuels! at austrianaddict.com.

Earth Day 2016, at austrianaddict.com.

Climate Change: Religion? Economics? Science? at austrianaddict.com.

The Hidden High Cost Of Green Energy, at austrianaddict.com. Excerpt from the article: “Government politicians and bureaucrats have been pushing Green Energy for years. The reason these central planners are pushing this is because as Robert Bradley Jr. has stated, “When Government tries to pick winners and losers, it typically picks losers. Why? Because the free market consumers pick winners to leave the losers for Government.”

“Even with all the Government regulations on the fossil fuel industry, and with all the subsidies and breaks the green energy sector has received, what’s left of the free market has chosen fossil fuels. Fossil fuels produce the most efficient energy at the lowest cost, which is why the market has chosen them to power our world.”

Renewable Electricity Promos Are ‘Greenwashing’ Scams, at cfact.org. Excerpt from the article: “Michael Gillenwater, a Princeton researcher who co-developed the EPA’s carbon emissions tracking system saying that RECs (renewable energy credits) are mostly donating to a cause. “What you are doing is subsidizing the market for renewable energy.”

Big Green Inc. : The Money Fueling The Environmental Left, at institutefor enerrgyresearch.org. The only way green energy can become a viable energy source is through government mandated tax payer subsidies, and making government regulations so burdensome they force the fossil fuel industry to go out of business.  Excerpt from the article: “There are three important takeaways from the information presented in Big Green, Inc. First, environmental groups have crafted a narrative that depicts their efforts as a “David vs. Goliath” battle against those who would like to see U.S. energy policy move in a free market direction. This narrative is false. Environmental groups outpace conservative and free market groups both in terms of funding and organizational capacity. Second, Big Green, Inc. demonstrates the sweeping influence of environmental activism and provides insight into how groups target the gatekeeping institutions of our society. As the database illuminates, environmental funding has been directed toward policymakers, journalists, academic institutions, the offices of elected officials, government organizations like the Federal Emergency Management Agency, as well as international institutions such as the World Bank. Finally, Big Green, Inc. demonstrates how this complicated system of financial transfers muddles efforts to reveal the sources of this funding, which has been linked to individuals who stand to benefit financially from the adoption of various environmental policies as well as foreign actors trying to influence energy policy within the U.S.”

OTHER STUFF

Act II Of The Most Important Political Event Of The 21st Century Begins In May, by Tom Luongo, at moneyand markets.com. The masses are rising up to overthrow the political establishment. Theresa May and the rest of the insiders have worked to betray and run out the clock on Brexit in order to get another national vote on the matter. She has thumbed her nose at the people, and they are not happy. Read Farage And The Charge Of The Brexit Brigade, by Tom Luongo, at tomluongo.me.

US Government’s Net Worth Is Now Negative $75 Trillion, by Simon Black, at thedailybell.com. It doesn’t matter which party is in control of congress or the presidency. The debt increases every year. Politicians and bureaucrats are spending $1 trillion more than they confiscate from the private sector via taxation. This will have to be dealt with at some point. Although I think that point has passed long ago. Raising taxes, printing money or defaulting are their only three options. That’s three bad choices.

Republicans’ Love Of Healthcare Socialism, by Jacob G. Hornberger, at mises.org. Why do Republicans, who are supposed to be for free markets, not want to overturn Obamacare? They fear the political back lash if they repeal it. After Medicare and Medicade, Obama care is just the next incremental step towards a government run single payer system, aka socialized medicine.

Socialism: Armed Robbery And Murder Based On Delusion And Profound Ignorance, by Gorege Reisman, at mises.org. No comment needed.

Paul Hollander Explained Why Smart People Support Totalitarianism, by Alexander Riley, at thefederalist.com. Excerpt from the article: “How is it that cultural elites—people whose livelihood depends on a high level of intellectual performance—can so easily and so frequently fall into a form of political identity that involves championing ideas and regimes that produce massive human suffering?”

“His conclusion was that it is typically the combination of utopian idealism, an unrealistic view of human nature, and a deep resentment at the relative deprivation these radical intellectuals tend to suffer vis-à-vis other elites with less educational (but more economic capital) that explains the phenomenon.”

Nancy Pelosi Declares A ‘New Era’ Of Internet Regulation; E.U. Threatens Same, Nick Gillespie, at reason.com. Tyrants want to control information. The internet has been a thorn in the side of the leftist agenda. So the left is incrementally trying to stifle free speech on the internet.

China’s Social Credit System – It’s Coming To The United States, Marin Katusa, at internationalman.com. Tyrants have to control the masses. China has figured out how. Are we next?

How Empires Fall: Moral Decay, by Charles Hugh Smith, at oftwominds.com. Excerpt from the article: “When a socio-economic system institutionalizes the extralegal privileges of wealth and power, that is moral decay. When government only responds in ways that first serve the interests of entrenched insiders, that is moral decay. When the financial system is rigged to sluice income and wealth to the top of the wealth-power pyramid while stripmining the productive class below via inflation and taxes, that’s moral decay.”

System D: 2.5 Billion People Can’t Be Wrong, at zerohedge.com. The black market, or System D, accounts for 20% of the worlds economic activity. Goverrnments can’t control black markets which is why they don’t like them. This is why governments around the world want to go to a cashless society. In an unrelated article, Canada’s Illegal Marijuana Market  Thrives Despite Legalization, by Jana Pruet, at theblaze.com. Is anyone shocked that people don’t want to pay a higher price for legal pot when they can get it cheaper on the black market?

MUELLER REPORT

If you are interested in this fiasco, here are some good articles.

Behind The Obama Administration’s Shady Plan To Spy On The Trump Campaign, by Andrew McCarthy, at nypost.com.

Robert Mueller Completely Dropped The Ball With Obstruction Punt, by Andrew McCarthy, at nypost.com.

CNN Op-Ed Admits “Mueller’s Report Looks Bad Fro Obama“, at zerohedge.com.

BuzzFeed Corrects Trump-Cohen Conspiracy Article After Mueller Report Rips It To Shreds, at zerohedge.com.

How Rachel  Maddow Turned Into Infowars, by Peter Van Vuren, at theamericanconservative.com.

 

SATIRICAL HEADLINES

Teen Driver Glances Up At Road, Nearly Misses Something Cool On Instagram, at babylonbee.com.

Justice Department Sends Trump Amazon Alexa Device As Peace Offering For Spying, at babylonbee.co,.

CNN: ‘God Allowed The Mueller Report To Test Our Unshakable Faith In Collusion‘ at babylonbee.com.

Unforgivable Sin Now Thought To Be Whiteness, at babylonbee.com.

Pope Francis Mourns Excess Carbon Emissions Given Off By Notre dame Fire, at babylonbee.com.

 

CARTOONS

from theburningplatform.com.

Political Cartoons by Mike Lester

Political Cartoons by Steve Kelley

Political Cartoons by Pat Cross

Political Cartoons by Steve Kelley

 

 

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There’s A Black Market For Cigarettes In NY State! I Wonder Why?

March 26, 2014

Less will be sold at a higher price than a lower price. The first part of the law of supply and demand makes perfect sense: do you cut back on the amount of a good or service purchased if the price gets too high? The second part of this law, more is supplied at a higher price than a lower price, also makes perfect sense; ask yourself: would you supply more labor at your normal wage or double your wage if asked to work overtime. The reality of supply and demand is always in play, even if Government tries to circumvent this economic law.

In this article, The Boom In Smuggling To Avoid Cigarette Taxes, by Jonathan Berr, at cbsnews.com, even though the State of NY has tried to raise the price on cigarettes, through taxes, to a level that would discourage the demand for cigarettes, it hasn’t worked, because the second part of the law, more will be supplied at a higher price, is also at work. As long as there is a demand for cigarettes, suppliers will fill that demand as long as the cost of supplying the product is lower than the price they receive in exchange, even if cigarettes are smuggled in via a black market. People will buy on the black market if they decide the cost of getting caught plus the lower price of the cigarettes is less then the higher price of the legal cigarettes. The sellers of the black market cigarettes could probably sell at a much lower price but they have to factor in the cost of getting caught into the prices they are charging. Supply and demand sets the black market price just as it sets the price in a free market hampered by taxes and regulation.

Government can’t stop activities that people want to engage in like prostitution or drug use. Government couldn’t stop the use or production of alcohol during the prohibition era. Eventually the 21st amendment had to be passed repealing the 18th amendment which prohibited the use of alcohol. At some point the question has to be asked, is the cost of prohibition greater than the cost of allowing people to freely engage in the prohibited activity? In the case of the Government trying to discourage an activity by raising the price through taxation, the point is reached where the price gets high enough that the black market supplies a portion of the product, and in the case of cigarette sales in NY, over half.

Economic forces are always trying to correct Government interventions into the market. The Fed created tech, housing, and present financial bubbles, the failed Obamacare roll out, fracking, failed green energy companies like Solyndra, and cigarette smuggling in NY are all examples of economic forces thwarting central planners plans. As long as the means needed to supply mans limitless ends are scarce, economic forces will reign over Government attempts to create abundance by decree.

Related ArticleThe Underground Economy In One Page, by Danny G. Leroy, at mises.org.

Related ArticleHealthy Hunger-Free Kids Act, Doesn’t Work As Planners Planned, by austrianaddict.com.

Related ArticleThe Reality Of Obamacare, by austrianaddict.com.