Monthly Archives: November 2010

Black Markets and Incentives

From EPJ:

The Big Apple Black Market Blows a Big Hole in a New York Tax
NyPo reports on New York’s crazed taxes on cigarettes:

It doesn’t take much coaxing to get otherwise legitimate Big Apple businesses into the illegal cigarette trade.

“They come out here like they are salesman from Pepsi or the potato-chip company,” said the owner of a north Bronx bodega that sells smuggled Newports and Marlboros for $8 a pack.

“I don’t know how the city is going to stop it. The city is losing a lot of tax money,” he said. “They are killing themselves, because no one is paying $12 for a pack of cigarettes, and I’m not paying taxes on the money I make selling them.”

His supplier provides him with cartons between $45 and $50 a pop, which gives him a $30- to $35-per-carton profit.

Despite the risks, individual entrepreneurs are also getting into the act.

“I needed a second job, and since I couldn’t find one, I decided to sell cigarettes,” said Gregg, a 30-year-old who sells cigarettes out of his backpack for $8 a pack in Midtown. “So far, I’m making a good profit. Sometimes I make $160 a day.”

Greg said he simply drives to Delaware, where he can get a carton for $27, and loads up his trunk.

Call it the Delaware Curve, and consider it a corollary to the Laffer Curve. There is a point at which if a state raise taxes on an item significantly higher than neighboring states, the state will actually experience declining tax revenue from the item taxed, as black market entrepreneurs will start operating and smuggle the item from the lower tax state to the higher tax state and sell the item tax free on the black market in the higher tax state.


Ron Paul: “Enough is enough!”

Ron Paul is a True Classic, but…

Ron Paul is a True Classic but he needs to read Lysander Spooner’s No Treason VI: The Constitution of No Authority:

Dealership: Buy Truck, Get Free AK47

Sanford Dealership Offers Assault Rifle With Purchase

Phony War on Terror


Writes a guy on Reddit:

Why would a ‘terrorist’ try to smuggle a bomb past the TSA when they could cause far more havoc by taking the same bomb and planting it in the busiest shopping mall, thus shutting down retail in the US.? Since this has never happened, is it fair to ask if the ‘war on terror’ is really real?

Standing up to the TSA in San Diego

Fascinating encounter with the TSA by a man who understands freedom:

Read the account and Watch the Videos

Notice how the father-in-law states in video #2 “I’m a retired cop and I’d like some professional courtesy – can  you just let him go through the metal detector instead?”  Of course, “professional courtesy” in nothing more than a favor to those that are also “connected”.  Also, notice how the father-in-law tries to pressure and guilt him into complying but he stands firm for liberty.

Here are the follow up postings to this article:

More about my TSA encounter at SAN
Motivation of my filming of my TSA encounter

Quantitative Easing Explained

Watch Video