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| | Ponder that for a minute. | | Ponder that for a minute. |
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| − | ==Addictions== | + | ==Harmful Goods and Services, and Addictions== |
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| − | The colony of Virginia survived and thrived by turning to tobacco and slavery. Much of the economy, even today, is based on vices. Sad but true. The largest building west of the Mississippi, which includes all of California and many other states, is located in Las Vegas, built on gambling. In fact, Las Vegas has far more hotel space than any other city in the United States, including even New York. | + | The colony of Virginia survived and thrived by turning to tobacco and slavery. Much of the economy, even today, is based on vices and harmful activities. This is sad but true. The largest building west of the Mississippi, which includes all of California and many other states, is located in Las Vegas, built on gambling. In fact, Las Vegas has far more hotel space than any other city in the United States, including even New York. The people staying in those hotels are hurting themselves and losing their money through gambling, which may be an addiction for them. |
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| − | [[Abortion]] exists because some are making millions of dollars from it, and giving some of that money to politicians who support them. Smoking exists because tobacco companies earn big profits from it, even though it kills many people each year. Beer is destroying people’s livers but making billions of dollars for beer companies. | + | [[Abortion]] is a very harmful activity that exists because some are making millions of dollars from it, and giving some of that money to politicians who support them. Smoking exists because tobacco companies earn big profits from it, even though it kills many people each year. Beer is destroying people’s livers but making billions of dollars for beer companies. |
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| | Go into a typical convenience store and you will find that they do a brisk trade in cigarettes, pornography, alcohol and lottery tickets. Those four categories probably account for most of their profits. The people paying for those goods are both losing money and hurting themselves. | | Go into a typical convenience store and you will find that they do a brisk trade in cigarettes, pornography, alcohol and lottery tickets. Those four categories probably account for most of their profits. The people paying for those goods are both losing money and hurting themselves. |
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| − | In the “underground” (illegal) economy, drug trafficking accounts for an enormous amount of commercial activity. | + | In the “underground” (illegal) economy, drug trafficking accounts for an enormous amount of commercial activity. Drugs are extremely hurtful, but drug dealers make money out of getting people addicted to drugs and paying money for them. Often people die of overdoses from drugs. |
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| − | What do all these economic activities have in common? They exploit addictions. The prices on these goods and services can be increased much more easily than on anything else. Someone addicted to drugs is still going to try to buy it even if the price increases by 10%, 20%, 50%, or 100%. The same can be said for gambling, pornography, alcohol and almost every other vice. They are profitable to sellers who exploit the addiction. Buyers lose their money and ultimately their lives. | + | What do these harmful economic activities have in common? They exploit addictions. The prices on these goods and services can be increased much more easily than on anything else. Someone addicted to drugs is still going to try to buy it even if the price increases by 10%, 20%, 50%, or 100%. The same can be said for gambling, pornography, alcohol and almost every other vice. They are profitable to sellers who exploit the addiction. Buyers lose their money and ultimately their lives. |
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| | ==Price Discrimination== | | ==Price Discrimination== |