Yes. At least a choice is offered. Current EU level taxes, although fairly insane (€3-€7 a pack on the average and without the taxes it would be under 50 cents), are still low enough to compete with the black market, the black market did not get very big yet. So this is more or less inside normalcy.
When a choice is not offered, such as the categorical ban of smoking at bars in most EU countries, the typical choices are to either to engage in something illegal and black-marketish, or to obey, and to obey has two versions, either to go there for a drink and not smoke, or to not go at all.
The difference between the two that the outcomes of the first are fairly calculable, predictable, and easily amendable. You can notch up a Pigovian tax until you notice the black market is too big of an annoyance, then turn it down a notch or two. The second option leads to unpredictable chaos, anything from bars closing down to public parks becoming impromptu drinking and smoking avenues.
So for the sake of a predictable order, it would be safer if bans would be replaced with special taxes that allow more granularity, such as allowing smoking in a bar that pays hazard pay and extra health insurance to the waitstaff. The market can price that in. While the non-smokers can enjoy lower prices in the smoke-free establishments who can compete better this way. Again the goal would be to fine-tune it until you reach a balance where both types of establishments flourish.
Now I realize there is something weird calling a plan that involves the governmental micromanagement of market libertarian-ish, but the point is it is still more so, still more market oriented, than categorical bans.
If you have a minimum wage, that might not work. What if the free market price of bar staff is $X per hour, the free market price of bar staff under poor health conditions is $Y but the minimum wage is greater than X and Y?
Yes. At least a choice is offered. Current EU level taxes, although fairly insane (€3-€7 a pack on the average and without the taxes it would be under 50 cents), are still low enough to compete with the black market, the black market did not get very big yet. So this is more or less inside normalcy.
When a choice is not offered, such as the categorical ban of smoking at bars in most EU countries, the typical choices are to either to engage in something illegal and black-marketish, or to obey, and to obey has two versions, either to go there for a drink and not smoke, or to not go at all.
The difference between the two that the outcomes of the first are fairly calculable, predictable, and easily amendable. You can notch up a Pigovian tax until you notice the black market is too big of an annoyance, then turn it down a notch or two. The second option leads to unpredictable chaos, anything from bars closing down to public parks becoming impromptu drinking and smoking avenues.
So for the sake of a predictable order, it would be safer if bans would be replaced with special taxes that allow more granularity, such as allowing smoking in a bar that pays hazard pay and extra health insurance to the waitstaff. The market can price that in. While the non-smokers can enjoy lower prices in the smoke-free establishments who can compete better this way. Again the goal would be to fine-tune it until you reach a balance where both types of establishments flourish.
Now I realize there is something weird calling a plan that involves the governmental micromanagement of market libertarian-ish, but the point is it is still more so, still more market oriented, than categorical bans.
If you have a minimum wage, that might not work. What if the free market price of bar staff is $X per hour, the free market price of bar staff under poor health conditions is $Y but the minimum wage is greater than X and Y?
There’s something really weird going on—I received this message in my inbox, too!