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Mexican cartels now trafficking cigarettes? « Hot Air: Will legalizing drugs end the cartels?

Heisenberg 2012/09/01 23:02:29
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NASDAQ.com reports:
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A Mexican industrial group said Tuesday an increase in tax on cigarettes that went into effect in 2011 has led to a proliferation of contraband, and that illegal cigarettes now account for nearly 17% of the cigarettes sold in the country. "


Read More: http://hotair.com/archives/2012/09/01/mexican-cart...

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  • Ginger 2012/09/25 20:15:38
    Disagree
    Ginger
    Here, drugs arent allow but they do it in the street in front of everybody , they fire in front of school , even dealers say 'its just like it is allow' . It will end nothing , its just an excuse to allow drugs .
  • HAlex1972 2012/09/04 19:50:22
    Disagree
    HAlex1972
    Not when the states put ridiculously high taxes on "sin" items.
  • Vision of Verve 2012/09/03 00:47:10
  • KeeganTheAwesome 2012/09/02 16:15:15
    Disagree
    KeeganTheAwesome
    DECRIMINALIZING, on the other hand, will.

    The main reason the cartels are so powerful as of late is due to the fact that the drugs they offer are illegal, which means that if you want to get those drugs, you have to go through the cartels that deal those drugs out. The cartels, as of late, are like a monopoly - since they're the only ones that offer access to the products they deal with, the people trying to obtain those products are at the cartel leaders' mercies, both economically and morally, and the cartels can force theirclients to commit various crimes and shell out huge portions of their money in exchange for the drugs. Not to mention the unprofessional ways many drug cartels produce the drugs, and the few regulations in place. (You don't say?)

    If, on the other hand, the drugs were decriminalized, other companies could start producing the drugs, giving the cartels' clients a way to obtain the drugs without having to go through the cartels and doing the cartel leaders' bidding. This means the cartels, unable to support themselves financially like before, would slowly shrivel up and stumble out of the spotlight, and crimes related to the cartels would go down. Add light regulations and light taxes to the situation ('light' as in "just enough that people can get the drug...

    DECRIMINALIZING, on the other hand, will.

    The main reason the cartels are so powerful as of late is due to the fact that the drugs they offer are illegal, which means that if you want to get those drugs, you have to go through the cartels that deal those drugs out. The cartels, as of late, are like a monopoly - since they're the only ones that offer access to the products they deal with, the people trying to obtain those products are at the cartel leaders' mercies, both economically and morally, and the cartels can force theirclients to commit various crimes and shell out huge portions of their money in exchange for the drugs. Not to mention the unprofessional ways many drug cartels produce the drugs, and the few regulations in place. (You don't say?)

    If, on the other hand, the drugs were decriminalized, other companies could start producing the drugs, giving the cartels' clients a way to obtain the drugs without having to go through the cartels and doing the cartel leaders' bidding. This means the cartels, unable to support themselves financially like before, would slowly shrivel up and stumble out of the spotlight, and crimes related to the cartels would go down. Add light regulations and light taxes to the situation ('light' as in "just enough that people can get the drugs without dealing with the world of criminals, but not enough to encourage people to go back to the cartels for cheaper prices and abuse the drugs"), and the cartels are almost unable to get back up on their feet.

    Long story short: I don't support giving everyone all-you-can-smoke access to drugs, since we all know how they interact with the human body, but I do support decriminalizing them to keep the drug-related crime rates down.
    (more)
  • Justagirl 2012/09/02 01:22:40
    Disagree
    Justagirl
    Decriminalize..not legalize. Why does the U.S. government think they are entitled to "sin" taxes?
  • Tastentier 2012/09/02 00:42:01
    Agree
    Tastentier
    +1
    In case of cigarettes, the problem is that the same high-quality brand name product is sold at vastly different prices in Mexico and the USA. If the drug cartels were forced to plant their own tobacco and roll their own cigarettes, and if tobacco wasn't insanely overtaxed in the USA in order to discourage smoking, the situation would likely be different.
  • Heisenberg Tastentier 2012/09/02 00:44:01
    Heisenberg
    You are confused.

    If I import tobacco and sell it to buys tax free, I have the advantage of a lower price without obeying the law.

    Pot-heads don't obey the law now, why would they obey the law later?
  • Tastentier Heisenberg 2012/09/02 01:02:53 (edited)
    Tastentier
    +1
    I'm not confused. The US government has created a unique situation by unreasonably increasing domestic cigarette prices to about $5 a pack, while the same brand name cigarettes made in USA are sold for $1.50 - $2 in Mexico. That makes it very easy for black market traders, who have no production costs, the same high quality product and a high profit margin.

    You don't see this problem with cannabis products in the Netherlands. Consumers know that marijuana / hashish that is legally sold in Dutch coffee shops is both high quality and free from contaminants, which can't be said about illegal street drugs. And since legal cannabis is reasonably cheap, the black market is pretty much nonexistent.
    Even if cannabis products were taxed in Holland, I believe that consumers would still trust the legal product over cheap street hashish that might be cut with who-knows-what.
  • Jeff Smith Heisenberg 2012/09/02 13:51:53
    Jeff Smith
    Federal or state laws depending on what state you live in yes we do obey the laws of that state. And we grow it and distribute it under state guidelines we profit from it and we pay taxes and fees on it. Some states allow for Medical Marijuana we are all legal under state law and we obey the law as described by our state.
  • Odinsown 2012/09/02 00:20:47
    Agree
    Odinsown
    +1
    Illegal organizations cannot compete with the prices brought on by the legalization of the vices they peddle. That is why the mob mad billions on booze, why cartels make trillions on illicit drugs, and why pimps make millions on illegal prostitution. Free the markets, free the people, free your self.
  • Heisenberg Odinsown 2012/09/02 00:38:06
    Heisenberg
    Then why are cartels supplying 17% of the cigarette market?

    Facts are stubborn things.
  • Odinsown Heisenberg 2012/09/02 00:48:44
    Odinsown
    +1
    There is a cartel you have forgotten about, the good ole u s of a, the a stands for artificially inflating prices.
  • Heisenberg Odinsown 2012/09/02 00:51:14 (edited)
    Heisenberg
    Ah yes, the liberal word games begin.

    USA is a cartel.

    Up is down.

    Down is up.

    You have to engage in mental gymnastics for liberalism to make sense.

    When all else fails call somebody a RACIST!
  • Odinsown Heisenberg 2012/09/02 02:59:04
    Odinsown
    You're funny. :D liberals call me a conservative, conservatives call me a liberal, and intelligent people call me right.

    Look a criminal organization that engages in extortion can be labeled as a cartel, money taken by threat of force is extortion, taxation with the threat of prison is extortion.

    The fact is that the us taxes the tabacco industry at an unjustly high rate, this artificially inflated the price, driving people to seek out a less expensive market, in this case a black market. Simple.
  • MrsJJS Odinsown 2012/09/02 08:42:41
    MrsJJS
    I agree with you. Governments who put extraordinarily high taxes on certain goods under the guise of “protecting public health and/or environment” are actually only doing it for a revenue stream. I’m from the US but live in the UK and the price of tobacco is higher here than it is in the US. The government here whinge about tobacco smuggling all the time but the only thing they seem to whinge about is the fact that they are losing X amount of £’s in tax revenue. Same goes for the alcohol and people using vegetable oil to fuel diesel engines. I find it all very hypocritical. If what they proclaim to wish for, i.e. people stop smoking, drinking alcohol and driving vehicles; this country would have an enormous £62 billion a year black hole to fill. And they would be politically screwed if they started slapping these astonishingly high taxes on things that are not considered “a sin” to use/have.
  • Odinsown MrsJJS 2012/09/02 15:21:45
    Odinsown
    I find it sad that the people in both nations allow this behavior from their leaders.
  • goatman112003 2012/09/02 00:11:11
    Disagree
    goatman112003
    +1
    Look Hezbolla was running cigarettes also and they are still here. The Mafia ran cigarettes and they are still here. Do you really think the Cartel will disappear if drugs are made legal the answer is No
  • Will 2012/09/01 23:20:34
    Disagree
    Will
    +2
    But that doesn't mean we shouldn't legalize
  • Heisenberg Will 2012/09/01 23:53:38
    Heisenberg
    OK so then why legalize?
  • Will Heisenberg 2012/09/02 00:11:08
    Will
    +1
    Because the majority of Americans who smoke will buy marijuana legally. We have strict regulations regarding marijuana usage; people are afraid of consequence. If weed were legalized, taxed, and sold that would diminish common paranoia. People don't like buying weed because it's illegal, if sold legally, most people would be relieved that they don't have to talk to sketchy characters anymore to obtain a harmless plant. The reason why the drug cartels will not cease completely is because marijuana and tobacco are not the only substances they smuggle although it does take a large piece of the cake.
  • Heisenberg Will 2012/09/02 00:39:20
    Heisenberg
    Why would you buy it legally if you already buy it illegally and the illegal price is lower?

    Your lack of logic implies you are impaired right now.

    People that break the law will suddenly obey the law when the law is changed?
  • Will Heisenberg 2012/09/02 00:49:00 (edited)
    Will
    +2
    First off, do you know how high the price of marijuana is on the street? Not low. Marijuana is most often imported from Mexico, the price rolls as it hits the states. If legalized the street price that currently exists would be obliterated. As I mentioned on a lower post supply and demand play an important role in the economy. If legalized they would have to create more marijuana to accommodate for all of the smokers who live all over the nation where pot is currently not sold or legal in any form. The government would grow it because it's cheap, then tax it. It's still much cheaper than paying the price it currently is. AND YES LEGALIZATION WOULD DIMINISH THE LEVEL OF ILLEGAL POT SMOKERS GREATLY DUE TO THERE BEING A SAFER WAY. Cigarettes are expensive, but weed is more expensive at the current street price, so if you're correlating knowledge of cheaper illegal cartel cigarettes with cheaper marijuana you're wrong. Well that's my opinion... at-least
  • Heisenberg Will 2012/09/02 00:53:51
    Heisenberg
    >f, do you know how high the price of marijuana is on the street?

    Depends on the street.

    >Marijuana is most often imported from Mexico, the price rolls as it hits the states.

    Depends on where you live.

    >The government would grow it because it's cheap, then tax it. It's still much cheaper than paying the price it currently is.

    You are not too clever are you?

    They must not have taught you about the free market in government school.

    Consumers make choices. They generally buy the cheapest priced product all things being equal.

    If somebody offers the same product at a lower price BECAUSE THEY DID NOT PAY TAX, consumers will buy the cheaper product.

    If you pot heads don't follow the law now, why would you follow the law and pay the tax in the future?

    You won't.

    You are laughably wrong and reality proves you so.
  • Will Heisenberg 2012/09/02 01:04:32 (edited)
    Will
    +1
    Your opinions are biased, I would state that marijuana as a unity has high street prices. You can not invalidate my answers with an asinine defense like "You are not too clever are you?". And you are way wrong about it being cheaper illegal; I know it was before your time, as it was before my time but have you heard about the prohibition of alcohol back in 1919? Yeah of-course you have, well when alcohol was sold illegally back then it was worth far more than before or after prohibition. And history has a way of repeating itself. Say what you want to to follow this up but I don't even see a point in continuing this conversation, I'm adamant in what I believe. You can call me stubborn, naive, foolish, or uneducated but your "reality" isn't mine.
  • Will Heisenberg 2012/09/02 00:54:08
    Will
    +1
    And by the way, I type far more intelligently with much more rationalization and thought than many of the users that I see on this site. Your implication of my impairment is not justified fairly, and no, I am not high right now. But, my answer would be nonetheless similar if I was... Well actually I probably just wouldn't have replied at all if I were...
  • Heisenberg Will 2012/09/02 00:57:40
    Heisenberg
    You are right.

    You are far more intelligent and well-written than the average pot-head on this site.
  • Will Heisenberg 2012/09/02 01:06:38
    Will
    Well, thank you. I'll take what I can get
  • KingdomNow 2012/09/01 23:17:26
    Disagree
    KingdomNow
    +1
    Organized crime makes billions a year by skirting tobacco taxes so all the idiots who think legalizing drugs and taxing them would magically make crime go away have not thought out the issue.

    You have to get rid of the taxes and regulations that create the underground market in the first place...and government refuses to relinquish that kind of power.
  • Heisenberg 2012/09/01 23:08:55
    Disagree
    Heisenberg
    +1
    'Legalize and tax' is the fool's mantra of drug addled youth who want their dope without consequences.

    If a cartel does not pay tax now, why on earth would they pay tax after drugs are 'legalized'?

    breaking bad cartel
  • Odinsown Heisenberg 2012/09/02 00:22:29
    Odinsown
    A cartel wouldn't but if the market were freed and opened they would not be able to compete with the prices a home grower could ask.
  • Heisenberg Odinsown 2012/09/02 00:39:56
    Heisenberg
    You must not have read the article.

    Cigarettes are legal now yet almost 1 fifth of the market is serviced by cartels.
  • Odinsown Heisenberg 2012/09/02 01:01:13
    Odinsown
    The "sin" tax is the reason for the illicit cigarette market. Which is what the article states. Remove the outrageous tax, and bam the cartel can no longer compete.
  • Will Odinsown 2012/09/02 00:40:11
    Will
    Or even with legal taxed prices, a cartel would have to drop their prices drastically. Supply and demand; if the government legalized and distributed marijuana they would be growing more to accommodate for the population of recreational users, with more marijuana available the price goes down. :)
  • Heisenberg Will 2012/09/02 00:45:03
    Heisenberg
    Government distributed now? LOL!

    Why on earth follow the law when it's cheaper not to?

    You pot-heads don't follow the law now but you will magically grow a conscience and buy more expensive legal weed?

    Are you high right now?
  • Odinsown Will 2012/09/02 01:03:38
    Odinsown
    Exactly, well aside from government distribution, if taxes were eliminated(most would say reduced but I am one of those nutty market anarchists) then the cartels would not be able to compete in the cigarette market, legalize pot and the home growers will run the cartels out of business.
  • Tastentier Heisenberg 2012/09/02 00:35:35 (edited)
    Tastentier
    I have a few questions:

    1.) If drug legalization or decriminalization doesn't work, how do you explain that the USA has the highest rate of cannabis use (42.6% of the population have tried marijuana), whereas the Netherlands have less than half the rate of the US (19.8%)? Why is the number of hard drug users also much higher in the USA (8.5 times higher than in Holland in case of cocaine)?
    (Source: http://www.sciencedaily.com/r... )

    2.) If tobacco was illegal in the USA, do you think that cigarette smuggling and other tobacco-related crime would increase or decline? Would the prison population, law enforcement costs, and taxation go up or down?

    3.) Seeing that there is very little alcohol smuggling, probably because liquor is quite cheap, could the real problem be the gross overtaxation of tobacco products?

    4.) Considering that alcohol causes more deaths than all illegal drugs combined, do you think that alcohol should also be prohibited, like back in the 1920s?
  • Heisenberg Tastentier 2012/09/02 00:47:32
    Heisenberg
    > If drug legalization or decriminalization doesn't work, how do you explain that the USA has the highest rate of cannabis use

    More Americans want to get high.

    > If tobacco was illegal in the USA, do you think that cigarette smuggling and other tobacco-related crime would increase or decline?

    Decline depending on the penalties.

    > Seeing that there is very little alcohol smuggling

    You are clearly not operating in reality.
    http://abcnews.go.com/US/stor...

    >Considering that alcohol causes more deaths than all illegal drugs combined
    Depends how you calculate. Do you include illegal use of prescription drugs? If so, your numbers are off.

    I believe in legalizing EVERYTHING. I also believe in no government welfare especially government medical care.

    Want to poison yourself? Go to it!
  • Tastentier Heisenberg 2012/09/02 01:11:18
    Tastentier
    "More Americans want to get high."

    And many of them are teenagers, which might be the real problem. Mature adults are less likely to engage in high-risk activities like drug use. Thanks to cannabis prohibition, 12-year-olds can easily buy marijuana behind the school yard, from the same street dealer that also sells hard drugs. In the Netherlands, minors have a much harder time obtaining marijuana.

    The US administration did the right thing when it comes to alcohol. The legal drinking age in the USA is higher than in most European countries, with the result that Americans have a much lower rate of alcohol-related deaths and medical conditions.
    (Source: http://politicalcalculations.... )


    "I believe in legalizing EVERYTHING. I also believe in no government welfare especially government medical care."

    Then what are we arguing about? :) I believe in the exact same thing. I somehow got the impression that you were against drug legalization.

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