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jorgesoler

Can't Leave
Dec 3, 2014
401
74
Someone needs to take a basic economics class.
I know you mean someone else, but don't be so patronizing. You have already admitted to the fact you can't learn (my opinion is etched on stone), so why are you encouraging other people to change theirs?

 

warren

Lifer
Sep 13, 2013
12,281
18,261
Foothills of the Chugach Range, AK
I can change my opinion, I just need sufficient facts to support such a change. None have been presented here that would indicate a change of position is dictated. I can also be reactionary when necessary but, not on a forum as there is little need for reaction, just measured thought and evaluation of presented facts and data. I've not seen that in this thread. So, no change of position is even anticipated.

 

crusader

Can't Leave
Aug 18, 2014
399
362
Nebraska
<p>I will starting my own Toby grow this year, not for financial reasons but for fun. Sounds like I better get good at it for the future. I am 37 and am afraid the market would kill the hobby otherwise.
 

jorgesoler

Can't Leave
Dec 3, 2014
401
74
Taxes on tobacco products have very little impact on tobacco usage. This is akin to gasoline taxes
Warren, so why is it, according to you, that the drop in fuel prices are stimulating the economy? As for tobacco, as an economic policy tool intended for social engineering, higher taxes are useless in curving demand, but they will create the incentives where black market will flourish. Whether you see it or not, there is a black market out there for tobacco products.
Household Impact on Fuel Prices.

 

briardan

Lurker
Feb 8, 2015
33
0
Its ok to eat processed foods and become obese, diabetic, or both. Become a nation of lazy potheads. Drink till you die, hurting anything or anyome who comes in contact with you. Pretty obvious a man who smokes a pipe or cigar is damaging the outlook of our country. If i so happen to shorten my life enjoying what i love, its a life well spent. No regrets. I know the risks im taking, i dont need a big brother telling me how to live it.

 

warren

Lifer
Sep 13, 2013
12,281
18,261
Foothills of the Chugach Range, AK
Lower fuel costs affect the economy in a couple ways. One, more discretionary moneys for the consumer increase. When the consumer starts to spend, investment grows, plants are built, jobs are created, more people have money to spend on other than the necessities of life. It's a circle that can turn into a spiral which then can, depending on the growth rate, cause economic growth until too many people become enamored with the growth, over heat the growth and then we have recession, possibly depression.
Secondly, lower shipping costs means slower increases in retail costs, which means income has a chance to catch up. Raw material prices stabilize which means manufacturing costs even out (until wage increases are demanded), truckers, railroads, airline and ship transport costs flatten out. Some of these costs may even shrink.
All of this creates the feeling, real or imagined (don't discount imagined well-being), that life is better, purse strings loosen and the economy starts to grow. When this happens governments and the market will endeavor to keep the lid on inflation. Soon, there will occur an imbalance and the markets will correct and the economy will go nuts again. Rather than let the markets self-correct government, in an attempt to garner credit and therefore votes will, in their always ham fisted manner, step in and cause further damage. Then we all have to wait for economic forces fix the problem while listening to politicians claim credit for any improvement. It's the nature of the beast in a free market environment.
Once again, I do not believe that higher taxes on tobacco products have as much impact on the shrinking tobacco market as does early training in schools, on TV, etc. does. Nor do I'm totally discount the existence of a black market in the immediate future. But, the black market needs demand and profit from that demand to exist. I believe tobacco usage will continue to shrink until there is only a very small profit incentive, far from that which is required to support a "black market." As that happens, black marketeers lose incentive to operate and become an insignificant element.
The alternative would be organized crime see profits and turns to creating a market much as they have done with drugs. Organized crime would not tolerate a black market of their product. Organized crime is much less tolerant of such activity than government is. Even the Soviets realized that they needed the black market to keep the masses content, when they couldn't deliver necessities. Which is why the black market thrived under the Communists, that market could provide whereas the government was impotent.

 

warren

Lifer
Sep 13, 2013
12,281
18,261
Foothills of the Chugach Range, AK
briardan: Reread your history. No country gets to stay on top forever. They seem to consume themselves after a couple of hundred years or less. The people get lazy and self-consumed with comfort and the decline begins. If America doesn't learn from the powers of the past, I doubt we will, it's all downhill from here. The US of A had it's moment and now another will seize the reins of power, looks to be China at this point in time. This is a time of transition and China looks poised, from a wealth standpoint, become the world leader and power broker for some period of time.
Remember, he who has the gold rules!

 

mustanggt

Part of the Furniture Now
Dec 6, 2012
819
4
Regarding the black market, just look at NYC with it's $14 pack of cigarettes. The black market is thriving there because of the confiscatory taxes. The whole reason that big guy that died from the stress of his arrest was because the cops were responding to him selling the single nails without benefit of paying the tax.

 
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