Comments on: State Created Black Markets http://chicagoboyz.net/archives/5770.html Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spirit. The blog name is also intended as a good-humored gesture of admiration for distinguished Chicago boys including those pictured above. Mon, 13 Feb 2012 13:49:08 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Dan from Madison http://chicagoboyz.net/archives/5770.html/comment-page-1#comment-226610 Dan from Madison Mon, 12 May 2008 13:47:59 +0000 http://chicagoboyz.net/?p=5770#comment-226610 Sounds like at least the part about the smokes was true. Sounds like at least the part about the smokes was true.

]]> By: phwest http://chicagoboyz.net/archives/5770.html/comment-page-1#comment-226547 phwest Mon, 12 May 2008 10:26:58 +0000 http://chicagoboyz.net/?p=5770#comment-226547 I remember reading a book called "Hit 29" when I was in high school. It was presented as a autobiographical story of a hit man executing a mob killing. The book opens with the hit man having just completed a job running a truckload of cigarettes up from North Carolina to New York. I remember reading a book called “Hit 29″ when I was in high school. It was presented as a autobiographical story of a hit man executing a mob killing. The book opens with the hit man having just completed a job running a truckload of cigarettes up from North Carolina to New York.

]]> By: Shannon Love http://chicagoboyz.net/archives/5770.html/comment-page-1#comment-226246 Shannon Love Sun, 11 May 2008 20:03:58 +0000 http://chicagoboyz.net/?p=5770#comment-226246 <i>I can see this happening over and over again as politicians start piling more and more sin taxes on things like booze and smokes without first understanding that there will be a black market created if other states don’t follow suit.</i> It's that dynamic that leads to increased federalization. I think that the small, high density states in the northeast vote for so much federalization because they have are so prone to these kind of situations. States like Texas usually could care less what the policies the surrounding states have. The people respond to high taxes by trying to avoid the tax. The higher the tax, the more avoidance. High taxes on income lead to diminished work, tax shelters and political support for loopholes. I can see this happening over and over again as politicians start piling more and more sin taxes on things like booze and smokes without first understanding that there will be a black market created if other states don’t follow suit.

It’s that dynamic that leads to increased federalization. I think that the small, high density states in the northeast vote for so much federalization because they have are so prone to these kind of situations. States like Texas usually could care less what the policies the surrounding states have.

The people respond to high taxes by trying to avoid the tax. The higher the tax, the more avoidance. High taxes on income lead to diminished work, tax shelters and political support for loopholes.

]]> By: Jonathan http://chicagoboyz.net/archives/5770.html/comment-page-1#comment-226151 Jonathan Sun, 11 May 2008 15:28:33 +0000 http://chicagoboyz.net/?p=5770#comment-226151 Black markets are always created by the State; by definition they do not exist in the absence of prohibition, price controls or high taxation. Black markets in crude oil and fuel existed in the '70s when there were price controls on petroleum and refined products. There may be a black market in untaxed fuel oil sold as motor fuel, but there is probably not enough money in this to justify widespread criminal involvement. There is no black market in gold, nor will there be one unless ownership of gold by individuals is again prohibited (unlikely). There are black markets in narcotics and, where gun ownership is prohibited or severely restricted, firearms. In countries with exchange controls there is often a black market in currency. A black market is nothing more than a free market in a product that the government does not want a free market in. Black markets are always created by the State; by definition they do not exist in the absence of prohibition, price controls or high taxation. Black markets in crude oil and fuel existed in the ’70s when there were price controls on petroleum and refined products. There may be a black market in untaxed fuel oil sold as motor fuel, but there is probably not enough money in this to justify widespread criminal involvement. There is no black market in gold, nor will there be one unless ownership of gold by individuals is again prohibited (unlikely). There are black markets in narcotics and, where gun ownership is prohibited or severely restricted, firearms. In countries with exchange controls there is often a black market in currency. A black market is nothing more than a free market in a product that the government does not want a free market in.

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