Scraping the bottom of the barrel

There may yet be some positive fall outs from the current crisis.

As state revenues dwindle, states are looking to tax less traditional forms of commerce like marjuana. Of course, taxing marjuana means that it first has to be legalized. Same for pornography or prostitution.

I’m all for legalizing some illegal activities particularly prostitution. In doing that, not only do you blow out of the water part of the illegal trade in humans but you also get a handle on health issues and clean up some neighborhoods by providing regulated venues for the activity. Prostitution exists. It always has. Legalize it, clean it up, tax it. Society will be that much better off. Same with drugs. Legalize them, clean them up and, for harder drugs, provide secluded areas for those individuals that want to do themselves in. Once again. Drugs exist and they are used. You legalize the drug thus taking out of the equation the criminal element thus cutting out the costs of preventing the smuggling and the trade. You are then only left with looking after the human medical and psychological issues of the users the costs for which can be partly offset by taxes on the drugs themselves.

http://www.reuters.com/article/domesticNews/idUSTRE54L5HR20090522?pageNumber=1&virtualBrandChannel=0

Anyway. Individual states cannot expect any help from the Federal Government because if any state gets help then they all should get it… and the short fall in individual states is way bigger than what the Fed Gov can provide even if the Fed Gov didn’t have to scrounge up money of its own for the mess it’s brought about in decade upon decade of artificially goosing inflation in the system.

Now inflation is dead. As I’ve pointed out in previous essays and more specifically here, our options to get out of this jam are few and well defined.

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