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Marijuana Sales Break Records in 2016, Here’s Why This is Important

in Business and Economy, Drugs, Economic Liberty, Liberator Online, News You Can Use, Personal Liberty by Alice Salles Comments are off

Marijuana Sales Break Records in 2016, Here’s Why This is Important

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

In 2016, marijuana sales grew 30 percent in the United States and Canada, reaching $5.86 billion in U.S. sales alone. As new rules regarding marijuana use and commerce begin to take effect in states like Florida, the year of 2017 promises to be the best in record for cannabis. And yet, the federal government continues to uphold its ban on the plant. Going as far as reassuring the public that CBD, one of the main ingredients in the cannabis plant used to manage pain, is also a Schedule I drug.

MarijuanaRegardless of the federal government’s lack of grasp, the market has chosen to ignore restrictions. Which is what the last big numbers tied to marijuana sales helps to prove.

By 2021, legal sales in the North American continent could reach the $20.2 billion mark, making the marijuana industry’s growth incomparable to the growth of other remarkable industries such as the the Internet. At this rate, the industry could be posting a 25 percent compound annual growth, experts say. But before marijuana, few industries showed this type of success.

In the 1990’s, one of the few consumer industry categories that reached the $5 billion mark in annual spending — only to produce the same rate of growth following the boom — was cable television. In the 2000’s, the Internet did the same, with a 29 percent compound annual growth. As the marijuana market continues to grow, however, the most important aspect of this story is often ignored.

As options become more widely available, and substances such as cannabis achieve legitimate statuses, consumers who rely on the product or who are simply curious now have options. When consumers have options and they are able to “shop around,” they are also less likely to be exposed to the evils of defective or corrupted products. Bad quality is often associated with items available in the black market precisely because the dealer selling products in obscurity has no incentive to compete.

When drugs and other products considered dangerous are decriminalized or legalized, consumers are the first to benefit.

Instead of standing in the way of personal choice, we must boost choice by simply letting the market decide where it goes first. Not because companies and entrepreneurs have a right to tell consumers what to do, but because consumers will lead the way, demanding better services and acting accordingly, by boycotting a certain product or service provider.

Study: States with Economic Liberty Benefit; States Without Economic Liberty Suffer

in Economic Liberty, Liberator Online by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 23 of the Liberator Online. Subscribe here!)

A just-released study shows that U.S. states with economic liberty benefit greatly from it, while residents of states with less economic freedom suffer badly from the lack of it.

Economic Freedom of North America 2014 is an annual report by Canada’s Fraser Institute that measures levels of economic freedom, and thus economic opportunity, in the 50 states (as well as Canada and Mexico).

Economic Freedom of North America 2014The report defines “economic freedom” as “the ability of individuals to act in the economic sphere free of undue restrictions.”

Elaborating on that: “The freest economies operate with minimal government interference, relying upon personal choice and markets to answer basic economic questions such as what is to be produced, how it is to be produced, how much is produced, and for whom production is intended. As government imposes restrictions on these choices, there is less economic freedom.”

The report shows that economic liberty has clear, measurable, dollars-and-cents benefits, writes study co-author Dean Stansel in the Washington Examiner:

“States that have low taxation, limited government and flexible labor markets enjoy greater economic growth, while states with lower levels of economic freedom suffer from reduced living standards for families and less economic opportunity.

“In the three most-free states (Texas, South Dakota, and North Dakota) average personal income is about 20 percent higher than in the three least-free states (Maine, Vermont, and Mississippi) — approximately $48,000 versus $40,000. And the unemployment rate is more than seven percent in Rhode Island (45th) versus about four percent in nearby New Hampshire (5th).

“Furthermore, cities in low-freedom states like California (43rd), Michigan (37th), and Rhode Island have made headlines in recent years for declaring bankruptcy, whereas cities in high-freedom states like Nebraska (5th), Texas, and the Dakotas, have seen incomes and their tax bases expand.

“In the top ten states, total employment grew by roughly 3.5 percent, while it has barely budged in the bottom 10. Over that same period, the economy grew more than eight percent in the top 10, but only by about two percent in the bottom 10.”

Concludes Stansel:

“The research is clear: Where economic freedom is high and rising, the number of jobs is expanding and the economy is vibrant and growing. Where it’s low and declining, the economy is stagnant, limiting opportunity and quality of life for residents of those states.

“Big, costly government at the expense of the people doesn’t work. It leads to economic decline. In contrast, expanding economic freedom increases economic opportunity and provides the path to economic prosperity.”

The report ranks economic freedom along a scale of 1 (lowest) to 10 (full economic liberty). This brings a warning: “Historically, economic freedom has been declining in all three countries. Since 2000, the average score for Canadian provinces on the all-governments index has fallen from 7.8 to 7.6; the number for U.S. states was 8.2 to 7.5.”

The Economic Freedom of North America study is an offshoot of the Fraser Institute’s acclaimed Economic Freedom of the World index, the result of a quarter century of work by more than 60 scholars including three Nobel laureates.

FDA Bureaucrats Kill 150,000 Americans

in Liberator Online by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 19 of the Liberator Online. Subscribe here!)

Never mind Ebola, terrorists and school shootings. Abolish the FDA

What Americans should fear is… the FDA (U.S. Food and Drug Administration).

The FDA’s failure to approve life-saving drugs in a timely fashion is killing thousands, even tens of thousands, of Americans every year, critics charge.

Take just one example. An estimated 150,000 Americans have died or will die from idiopathic pulmonary fibrosis — a disease in which tissue deep in the lungs becomes thick and stiff, or scarred, making breathing difficult — because of the FDA’s four-year delay in the approval of the drug pirfenidone — a drug already approved and marketed in Europe (since 2011), Japan (2008), Canada (2012) and China.

That estimate comes from Dr. Henry I. Miller, a medical researcher, founding director of the FDA’s Office of Biotechnology, and 15-year member of the FDA.

That’s more Americans than were killed in any American war except the Civil War and World War II.

And pirfenidone is just one example among many others. The FDA’s slow approval of beta-blocking drugs in the 1970s may have led to the unnecessary deaths of up to 100,000 people, according to Sam Kazman, J.D., of the Competitive Enterprise Institute.

For many years the FDA prohibited aspirin makers from advertising the widely-accepted argument that aspirin could significantly reduce the risk of heart attack for some patients. According to economist Paul H. Rubin, “The FDA surely killed tens, and quite possibly hundreds, of thousands of Americans by this restriction alone.”

Indeed, says Reason magazine’s science correspondent Ronald Bailey, “the FDA’s increased obsession with safety may be killing more people than it saves. …After all, if it takes the FDA ten years to approve a drug that saves 20,000 lives per year that means that 200,000 people died in the meantime.”

The FDA’s approval process can take up to… 18 years. For people desperately fighting fatal illnesses, such long waits are death sentences.

Making things worse, the FDA’s review process is so expensive that,according to Yevgeniy Feyman of the Manhattan Institute: “The typical drug approval costs between $1.2 and $1.3 billion.”

According to Reason magazine’s Bailey, many drugs that could save lives are never introduced because of this cost.

In 2000, economist Daniel B. Klein of the Independent Institute wrote: “Because the FDA process is so expensive, so protracted, and so uncertain, thousands of untold drugs are never discovered or developed. It is impossible to estimate the suffering and death caused, but surely it greatly exceeds 50,000 premature deaths annually.”

Why is the FDA so agonizingly (literally) slow and expensive? Prior to 1962, the average time for FDA approval was just seven months. However, in 1962 Congress passed the Kefauver Harris Amendment, which added a new requirement of proof of effectiveness, in addition to the old standard of proof of safety, for approval of new drugs. Effectiveness is a far more difficult, and expensive, standard to meet.

Perhaps worst of all, the FDA typically doesn’t give even gravely ill patients the opportunity to choose promising treatments it has not approved. As journalist Kate Jenkins asks: “If you had a fatal disease and were told you only had one year to live, wouldn’t you prefer to be allowed to make your own choice?”

This article by Ronald Bailey gives a further look at this mess, and offers libertarian alternatives.

The Independent Institute offers an overview of the situtation and proposals for replacing the FDA.

And for a great movie that dramatizes this life-and-death struggle, see The Dallas Buyers Club starring Matthew McConaughey.

Major Study: U.S. and World Economic Liberty is Fading

in Liberator Online by James W. Harris Comments are off

Economic Freedom of the WorldEconomic liberty — essential for human progress and well-being — has dropped significantly worldwide. And the United States — once the very symbol of economic freedom — has fallen behind many other countries in this crucial area.

That’s the disturbing finding of the 18th annual Economic Freedom of the World Annual Report, a highly-regarded measuring of economic freedom around the world.

The annual study is prepared by the Economic Freedom Network, a group of independent research and educational institutes in nearly 90 nations and territories worldwide. The group describes their report as “the world’s premier measurement of economic freedom.”

The report defines the cornerstones of economic freedom as: personal choice, voluntary exchange, freedom to compete, and security of private property.

The report measures economic freedom in five different areas: (1) size of government, (2) legal structure and security of property rights, (3) access to sound money, (4) freedom to trade internationally, and (5) regulation of credit, labor, and business.

Each year’s report ranks the nation of the world in relation to one another, and assigns a score from zero to ten on the amount of liberty in each nation.

This year’s study covers the year 2012, the most recent year for which the data is available.

It reports that the United States, “long considered the standard bearer for economic freedom among large industrial nations, has experienced a substantial decline in economic freedom during the past decade.”

The fall has been fast. From 1980 to 2000, the U.S. was generally rated the third-freest economy in the world, ranking behind only Hong Kong and Singapore.

However, in this year’s study the United States now ranks 12th in the world, tied with the United Kingdom and behind countries including Canada, Jordan and the United Arab Emirates.

More disturbing than the rankings is the U.S. score of 7.81, which shows a continuing pattern of losing economic freedom. After generally rising from 1980 to reach second place and a score of 8.55 in 2000, the U.S. has now fallen considerably lower.

The reasons? According to the study: “Due to a weakening rule of law, increasing regulation, and the ramifications of wars on terrorism and drugs, the United States has seen its economic freedom score plummet in recent years, compared to 2000 when it ranked second globally.”

Worldwide economic freedom dropped slightly in this year’s report, and it remains well below its peak level of 6.92 in 2007. The average score fell to 6.84.

Hong Kong retained the highest rating for economic freedom, 8.98 out of 10. The rest of this year’s top scores are Singapore, 8.54; New Zealand, 8.25; Switzerland, 8.19; Mauritius, 8.09; United Arab Emirates, 8.05; Canada, 8.00; Australia, 7.87; Jordan, 7.86; and, tied for 10th at 7.84, Chile and Finland.

These scores are extraordinarily important, because, as the report shows, economic liberty is literally a matter of life and death. Extensive research shows that people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer life spans.

As the report notes: “Nations in the top quartile of economic freedom had an average per capita GDP of $39,899 in 2012, compared to $6,253 for bottom quartile nations. Moreover, life expectancy is 79.9 years in the top quartile compared to 63.2 years in the bottom quartile, and political and civil liberties are considerably higher in economically free nations than in unfree nations.”

Further, the poorest 10 per cent of people in the freest nations are nearly twice as prosperous as the average population of the countries with the least economic freedom.

The 10 lowest-rated countries for economic freedom are: Myanmar, Democratic Republic of Congo, Burundi, Chad, Iran, Algeria, Argentina, Zimbabwe, Republic of Congo, and, lastly, Venezuela. (North Korea and Cuba could not be included because data was unavailable.)

“The link between economic freedom and prosperity is undeniable,” said Fred McMahon of the Fraser Institute, one of the institutes involved in producing the report. “The most economically free countries offer the highest quality of life and personal freedoms, while the lowest-ranked countries are usually burdened by oppressive regimes that limit the freedom and opportunity of their citizens.”

The report is available free online.