How To Think Part 1: How To Choose Good Policies

This video describes some reasonably simple but useful methods for undertaking social or economic decision making. It describes decision making from the point of view of a perfectly neutral social planner, and is predicated on perfect information, perfectly competitive factor and product markets and the rational choice model.

Category:

Howto & Style

Tags:

• How
• To
• Think
• Political
• Economy
• Economics
• Social
• Sociology

[furyofbongos]

I assume in the cannabis part your position is that the tax is voluntary because it's a choice to buy cannabis. I fail to see your logic here. If I want cannabis, I am forced at gun point to pay a tax on it (the gun is pointed at the seller, actually). This is anything but voluntary.

You can't say that taxation is voluntary because it can be avoided by not purchasing the taxed item. It's voluntary only if I have the legal option to not pay it while I'm purchasing cannabis.

[JmkLcAeJsm]

The tax merely translates into the price. If you choose to pay the price, you must expect to be better off paying the price and having the good than not. So I fail to see the problem here!

[furyofbongos]

The problem is the assertion that a tax on pot is "voluntary" as you explicitly stated.

If I choose to pay the price, how does that make the tax voluntary? This only means that I value the pot more than the money amounting to the price including the tax.

If a tax is voluntary, by definition I must be legally allowed to choose not to pay the tax when buying the pot with no negative consequences. This can't happen.

Therefore it is erroneous to assert that a tax on cannabis is voluntary.

[JmkLcAeJsm]

Perhaps in that particular sense, but I really do think that's unnecessarily picky.

[furyofbongos]

Unnecessarily picky?

What if I made a video and began it with: "this video is intended to serve as a guide in thinking about science and mathematical issues..." and nested deep in my talk while making a case about a minor point I uttered: "...and two plus two equals five..." would you not wrinkle a brow?

[JmkLcAeJsm]

Ok, being a pragmatist and wanting to keep the video under 5 minues, I didn't want to go and explain the deadweight loss of taxation in this video, would have taken a good minute and an extra couple of diagrams.

[NwZ2]

Please please PLEASE make more videos more often?

Thanks.

[uskafighter]

Another great video. I almost wish Youtube had the ability to allow other people post your video as a response to other people's videos. Of course that would have to allow a video being able to respond to multiple videos. Over all it would be too hard to do, but how cool would that be to go, "Your an illogical moron. I am hereby stamping you with John's 'How to think part 1'. Watch and then go sit in the corner and think about what you have done."

[pedrodapalma]

Hmmm can't really see the problem regarding voluntary or not. If cannabis becomes a concumption good like milk, bread or beer - you'll never think about the fact you are forced to pay tax every time you order a beer in the bar! Normally you'll blame the bar for being expensive cause you know a place where the beer is cheaper - result of the kind of free market:)

Pedro - Denmark

[furyofbongos]

Well, you open by saying "this video is intended to serve as a guide in thinking about social and economic issues..." Certainly taxation falls into that category.

I realize it wasn't the central part of your vid, you were using it to make a point. But it was as if I were to say "God really does exist, therefore...." or, "the earth is flat, therefore..."

Certainly you would *think*, "wait a minute..."

Taxation is voluntary in the same sense as God is real and the earth is flat.

[JmkLcAeJsm]

Might I ask why?