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Pharmaceutical Industry Terrified Weed Legalization Will Put Them Out of Business

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

Pharmaceutical Industry Terrified Weed Legalization Will Put Them Out of Business

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

The opioid epidemic is a real issue in America. So much so that the U.S. Attorney General Loretta Lynch started telling young folks that marijuana isn’t really the problem. Instead, Lynch explained, legally prescribed medications are to blame for the increase in opioid abuse.

But while learning that the head of the United States Department of Justice has just argued that weed does not represent a real threat may sound promising, it’s important to remember that marijuana is still a Schedule I drug. Meaning that the federal government still sees marijuana as a substance “with no currently accepted medical use and a high potential for abuse.”

ManufacturingRecently, a group of marijuana legalization activists got an initiative known as Proposition 205 in the ballot in Arizona.

The initiative would allow Arizona residents who are older than 21 to possess up to an ounce of marijuana in public. Prop 205 would also allow consumers to grow up to six plants at home, giving them the option to give other adults up to an ounce at a time of its produce “without remuneration.”

But with the good news came another discovery.

The group that, alone, donated $500,000 to the effort to oppose the Arizona marijuana legalization campaign, is a local pharmaceutical company known as Insys, and it produces oral sprays used in the delivery of an opioid painkiller known as fentanyl.

According to Reason, the same company is planning on marketing yet another device that would deliver dronabinol, a synthetic version of tetrahydrocannabinol, or THC: The main mind-altering ingredient in cannabis.

When donating to kill the initiative, the company contended that its opposition to marijuana legalization is due to Prop 205’s “[failure] to to protect the safety of Arizona’s citizens, and particularly its children.” According to Reason’s Jacob Sullum, what Insys is truly worried about is “the impact that legalization might have on its bottom line, since marijuana could compete with its products.”

And why is Insys so concerned? Perhaps because a recent study published in the American Journal of Public Health contends that, in states where marijuana use is legal to a certain extent, fatally injured drivers are “less likely to test positive for opioids.” Sullum adds that this finding, along with the results of other studies show that “making marijuana legally available to patients saves lives by reducing their consumption of more dangerous medications.”

The data analyzed by researchers comes from the Fatality Analysis Reporting System (FARS). By looking at the data gathered from 18 states where 80 percent of drivers who died in auto crashes were drug-tested, researchers found that, between 1999 and 2013, drivers between the ages of 21 and 40 were half as likely to test positive for opioids where medical marijuana laws had been implemented.

In these same states, researchers found that painkiller prescriptions fell by 3,645 daily doses per physician. Researchers concluded that “the passage of the medical marijuana laws” are directly associated with “the observed shifts in prescribing patterns.”

As the industry begins to fear the consequences of ending the drug war, we begin to understand that their dominance over the market is mainly due to their rent-seeking practices, which keep their leaders close to lawmakers, helping the industry to exert enough influence to sway public policy in a way that benefits them.

Without the presence of a government body giving companies special protections while outlawing particular drug transactions, drug providers are able to compete freely and in the open, giving consumers better and safer options.

It’s time to finally put an end to the drug war and admit that, rent-seeking will never help the nation heal from all of the negative consequences of our country’s ongoing romance with crony capitalism.

Drug-Testing Industry Heavily Invested in Keeping Pot Illegal

in Consumer Protection, Drugs, Liberator Online, News You Can Use, Personal Liberty by Advocates HQ Comments are off

Drug-Testing Industry Heavily Invested in Keeping Pot Illegal

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

The US government’s war on drugs has always counted with a great deal of support coming from a variety of special interest groups. Crony capitalism, it seems, is always to blame. But while libertarians have always known that, the media is just now realizing that there are more special interest groups involved with the drug war than they had previously thought.

TestToo bad mainstream news sources often misdiagnose the root of the problem.

According to an extensive ATTN article, the drug-testing industry is one of the most powerful opponents to weed legalization in America, along with the private prison industry, law enforcement, and big drug companies.

In the ATTN piece, the writer gives inside information on the history of cronyism involving the drug-testing industry and the US government. It also explains that several former DEA administrators are now part of nonprofits that advocate and actively lobby for drug-testing in Washington to remain relevant. The piece also explains that while federal agencies were bound by law to implement drug-testing programs in the 1980s due to the passage of the Drug Free Workplace Act, government agencies were the first to be hit with the government’s recommendations regarding drug-testing policies, thanks to an executive order issued by the President Ronald Reagan administration.

“Urine tests,” the article explains “didn’t become a common workplace practice in the U.S. until the 1980s,” which is when the Reagan administration began requiring federal government employees to be tested. This statement implies that the entire drug-testing industry may have not had as much influence as it does now if not for a string of orders and regulations that require organizations to use their services.

To Jason Williamson, a senior staff attorney at the American Civil Liberties Union’s Criminal Law Reform Project, “passing or failing a drug test has no bearing on whether or not they’re going to be impaired at the job two weeks later.” This “piece of the puzzle,” Williamson told Attn.com, is huge, and a major reason why “drug-testing companies don’t need or want to talk about” the real implications of their services.

According to a 1985 study shared by the Drug and Alcohol Testing Industry Association, airline pilots using flight simulators after smoking marijuana showed signs of impairment 24 hours “after usage.” But in a more recent government-sponsored study from 1989, researchers found that the psychoactive effects of cannabis use “wore off after one to four hours.” Proving that the largest drug-testing industry trade group in the country might have been helping these firms do business with countless organizations and government agencies without addressing the problems brought up by pro-marijuana legalization activists.

A quick search on the Center for Responsive Politics website shows that, to this day, organizations associated with DATIA such as Quest Diagnostics are actively—and heavily—involved with Washington politics.

According to a 2012 Reason piece, another organization known as the Drugs of Abuse Testing Coalition spent thousands lobbying for “Medicare reimbursement … and payment rates for qualitative drug screen testing.”

Targeting crony capitalism and its negative consequences, even when the subject is the drug war, could help us clear away the fog, giving advocates access to the real roots of the government’s ineffective drug war and how to solve the problem.

4/20 Weed Sales Prove the War on Drugs is Hindering Economic Development

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

4/20 Weed Sales Prove the War on Drugs is Hindering Economic Development

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

On April 20th, marijuana enthusiasts celebrate what they call a national holiday. With the sales of marijuana products exceeding the $37.5 million mark on this past 4/20, the ongoing efforts to put an end to the drug war and their lucrative consequences show that entrepreneurs have a lot to gain once the substance is rescheduled federally.

Woman_smoking_marijauana (1)Former aide to President Richard Nixon John Ehrlichman, who served time in prison over his involvement with the Watergate scandal, allegedly admitted that the drug war launched by the Nixon administration had two targets, “the antiwar left and black people.”

Ehrlichman allegedly told journalist Dan Baum that members of the Nixon White House “knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities.”

As US states disrupt the ongoing federal effort to put an end to drug consumption in America by passing their own marijuana legalization laws, the drug war is finally unwinding, at least partially.

According to Fox News, marijuana retailers registered a 30 percent increase in retail transactions on 4/20. The report comes from a software company that provides global cannabis businesses seed-to-sale tracking systems known as MJ Freeway. The startup, which was launched in 2010, is able to sift through data from cannabis retailers, producing an accurate analysis of 40 percent of America’s cannabis market.

As more states join the legalization bandwagon by passing recreational marijuana bills, legal retail sales are estimated to reach $6.7 billion by the end of 2016. As entrepreneurs heap the benefits, the industry promotes economic growth by offering great employment opportunities for residents of the states where weed is legal.

On April 20, MJ Freeway has disclosed, legally-licensed cannabis retail locations across the country sold $10,822 worth of products on average. The days before and after 4/20 have also seen a boost in sales. According to MJ, legal weed retailers sold $6,208 on April 19 and $5,442 on April 18 also on average.

California saw the largest dollar amount sold on April 20, beating others like Colorado and Washington, where recreational weed is legal. Colorado ended up beating all other states by having higher sales on average on April 20th.

While these numbers seem promising, it’s hard to assess just how much wealthier the country would be if all drug laws put in place in the name of an undeclared war on immoral behavior were lifted.

While discussing the health consequences associated with drug use is important, the burden should be shared by local communities, where individuals have access to religious entities and other privately-organized groups that support addicts, not in the hands of law enforcement.

As the country becomes increasingly enamoured with the idea of bringing the drug war to a halt, libertarian advocates claim that even gun violence would suffer a major blow once laws criminalizing drug consumption and sales are dropped.

According to Cato Institute’s Adam Bates, the only “common sense” approach to the gun violence issue in America is to end the drug war. After all, more than 2,000 homicides a year are gang-related, the government estimates. What is Washington waiting for?

Aluminum Industry Wants Tax Deal, but Nobody Wants to Cut the Red Tape

in Economic Liberty, Economics, Liberator Online, News You Can Use, Taxes by Alice Salles Comments are off

Aluminum Industry Wants Tax Deal, but Nobody Wants to Cut the Red Tape

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

Many think of crony capitalism as the source of all problems we face as a nation. They are not entirely wrong.

Take the domestic aluminum industry for instance. Despite the taxpayer investment, producers are losing their share of the market. Without freedom to compete, members of the industry take part in political games, using their influence with state governments and Washington politicians to beg for privileges that no other aluminum producers enjoy. The result? Major trouble for the consumer, employer, and worker.

Aluminum

In America, there are three companies that produce primary aluminum. Alcoa is the largest producer, operating multiple primary plants in New York, Washington, Indiana, and Texas.

In early November 2015, Alcoa announced that it would have to permanently close its Massena West smelter in New York. At the time, town supervisor Joe Gray said that the jobs Alcoa would take away if the smelter closed would be “next to impossible to replace,” considering the aluminum giant has been the major employer in the region for quite some time.

By late November, however, a deal was reached and the upstate New York smelting plant was saved. What happened? New York Governor Andrew Cuomo unveiled a $69 million incentive package that benefited Alcoa. At least 600 jobs were saved.

The plan was backed by Cuomo and Sen. Charles Schumer (D-NY), who made the announcement at the Alcoa plant in Massena. As union bosses celebrated the special relationship between the New York government and industry leaders, the incentives weren’t widely criticized, mainly because tax incentives aren’t seen as handouts by many. Instead, people often believe that tax incentives are good.

During the announcement event, Cuomo claimed that the incentives plan “is the state’s way of stepping up.” Yet none of those present were able to criticize the existing red tape that makes it so hard for companies to function in America in the first place.

If the cost of doing business in the country was not an obstacle, more competitors would fill up the gap, and cheap aluminum coming from China would have a hard time staying relevant. Instead of working to remove red tape and help all entrepreneurs and existing businesses to flourish, the state decided to give one group access to privileges that others in the same industry simply do not enjoy.

But as Alcoa enjoys the $30 million it got from the New York incentive package, things continue to look bad for the aluminum producers and its employees. Except now, the issue is not New York, it’s Indiana.

According to IndyStar.com, southwestern Indiana residents are now concerned that the Alcoa smelter in their state will shut down, shedding 600 jobs in the process. Early in January 2016, Alcoa announced it would be closing its Warrick Operations smelter by the end of March. This is a “major economic event,” said Warrick County Chamber of Commerce director Shari Sherman. But to Alcoa, the shutdown makes sense because the Indiana facility is not “competitive.” Meaning the cost of keeping it open is a burden.

The facility has been operating in Indiana for the past 55 years. As the smelter closes, multiple families brace for the impact. As workers struggle, so do companies that are finding it much harder to compete. The issue? They have a hard time covering the costs of doing business in America.

If workers and consumers are serious about seeing fewer job losses in their states and more prosperity, they’d be urging lawmakers to cut the red tape, not backroom deals.

Your Favorite Distilled Beverage May Get a Little Cheaper

in Economic Liberty, Liberator Online, News You Can Use, Taxes by Jackson Jones Comments are off

Your Favorite Distilled Beverage May Get a Little Cheaper

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

A bipartisan bill was introduced recently that would lower the per gallon excise tax on distilled drinks, including whiskey and rum.

The Distillery Innovation and Excise Tax Reform Act, introduced by Rep. Todd Young (R-Ind.), would relieve distilleries, especially newer ones, of some of the burdens they face when bringing products to market.

Currently, distilled drinks are taxed at $13.50 per proof gallon. Young’s bill seeks to lower the tax to $2.70 per proof gallon on the first 100,000 gallons produced by a distillery and $9 per proof thereafter.

Barrel

Rep. John Yarmuth (R-Ky.) has cosponsored the bill, which was referred to the House Ways and Means Committee on May 21. Rep. Paul Ryan (R-Wis.) chairs the powerful tax-writing committee.

“All around southern Indiana, many new craft distilleries are popping up, creating jobs and adding to the tax base,” Young said in a release on Wednesday. “But there’s a lot of red tape involved in getting a new distillery off the ground, and this bill helps reduce that burden. In addition, we have many large, established distilleries in our region of the country, and this bill will help them, too.”

The bill has support from the Distilled Spirits Council of the United States (DISCUS) and the American Craft Spirits Association (ACSA). “It is significant that the distillers of all sizes are united behind this important hospitality industry legislation,” Peter Cressy, CEO of DISCUS, said in a joint release with ACSA. “We thank the sponsors for recognizing the economic impact passage of this bill will have for our industry.”

Sen. Gary Peters (D-Mich.) introduced a companion bill in the Senate. Sens. Dan Sullivan (R-Alaska) and Kirsten Gillibrand (D-N.Y.) have signed on as cosponsors of the bill. Although the members represent states with a number of distilleries, the popularity of craft spirits has risen significantly and virtually every state now has distillery.

For the producers, the savings can mean expansion of their operations and more jobs for local communities.

“I started my distillery eight years ago to support Michigan jobs and prove that high quality spirits could be made right here in Michigan,” Rifino Valentine, founder of Valentine Distilling, said in a press release from Peters’ office. “While I’m proud to say we are expanding our facility, so many small distilleries are at a unique disadvantage as a result of the high federal excise tax.”

The bill may be common sense, but similar efforts to lower the excise tax on distilled spirits didn’t move out of committee in the previous Congress.