Oh this is classic...
This was provided by a new entry to our Blogroll - give a warm welcome to
Catallarchy
A perfect example of the difference between public sector and private sector when it comes to economics. The choice is to use a government provided product or a privately provided product. The source sells to both vendors and the government is supposed to be running this at cost.
The outcome - the government is unable to sell it's product at any less than twice the private sector price and is left with inventory.
The government -- Holland
The product -- I'll let Patri Friedman speak:
bq. Because they foolishly tried to compete with the free market in growing, packaging, and selling marijuana by creating a publicly-run medicinal marijuana program. Blaming packaging and distribution costs, the government bud sells for twice as much as the plentiful coffeeshop alternative. As a result, they’ve only sold 175 lbs of 450 expected. The head of a cannabis research company misses the point by asking “Why is it that a legal commodity is more expensive than an illegal commodity?”
bq. The crucial distinction here, of course, is between public and private, not legal and illegal. In other words, whoever started that program must have been stoned on the smoke of public power to think they could compete with the private sector. Oh well, at least there’s an obvious way to console themselves - I mean, just how sad can you be with 275 lbs of dope lying around?
bq. Full article at
Yahoo News.
Heh... Old Europe at its finest - they should ship it to Germany to console the laser-tag people unable to play. Ist Verboten!
Posted by DaveH at October 15, 2004 9:46 PM