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Wednesday, March 12, 2014

Bootlegging for Fun and Profit

Poor Man Survival

Self Reliance tools for independent minded people…

 ISSN 2161-5543

When I sell liquor, it's called bootlegging;
when my
patrons serve it on Lake Shore Drive,
it's called
Al Capone

"Bootleggers and Baptists."

Anyone who understands how economics works can understand why bootleggers were in favor of the law. The government regulation made their product scarce, driving up prices and increasing profits. So even though they were breaking the law, they were making a huge profit in the process.

These kinds of odd relationships can come about only as a result of government tinkering in your life.

The state legislature in MD wants to raise taxes on cigarettes and tobacco companies. If the state regulators get their way, they'll increase the tax on cigarettes by 50%, making it the fourth-highest cigarette tax in the country. They also want to increase taxes on products like cigars, rolling papers, and smokeless tobacco.

Health advocates and state regulators should be delighted to hear the news. They want to make sure you're protected from these evil cancer sticks. At the same time, black market cigarette smugglers are probably very excited as well.

You see, Maryland's southern neighbor, Virginia, has some of the lowest cigarette taxes in the country. And many opportunistic black-market operators take advantage of their low prices, bringing the product to other regulated states. In fact, many cigarette smugglers caught in Maryland are usually on their way up north to New York, the state with the highest cigarette tax in the country.

So you can see why these black-market smugglers should be so excited. Thanks to the new Maryland laws, their transportation costs would drop dramatically. Now all they'd have to do to find a profitable market is cross the Potomac River.

It's the unintended consequence of government regulation that you find out about only in the months/years after a law is passed. Politicians are good at coming up with new ways to tax you, but they rarely take the time to think beyond that first step.

Politicians and bureaucrats are notorious for manufacturing euphemisms -- clever but deceptive substitutes for what they really mean but don't want to admit. That's how the phrase "revenue enhancement" entered the vocabulary. Some of our courageous friends in government couldn't bring themselves to say "tax hike."

Source:  Guns n Glory

The Poor Man had the honor of meeting and supporting Mr. Brown when he was the Libertarian candidate for President.  His Book, How I Found Freedom in an UnFree World is a must read!

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--The Doctors Protocol: Secrets of Survival

--How to Survive the Coming Economic Collapse

--Guide to Self Reliant Living

--Becoming Self Sufficient for Six Months

--How I Found Freedom in an Unfree World



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