When Massachusetts voters said yes to legal marijuana, they made an economic decision that relates to competition, taxes, and banking.
Our everyday economics includes property rights, sovereign debt, default,, externalities, regulation, Pigovian taxes, incentive, state taxes, and oligopoly.
Creating different incentives, the variety among state taxes includes some with no income tax, others with sales taxes and some with severance taxes.
To avoid inelastic demand, a sugary drink tax would need to increase price substantially. Current taxes that average less than 5% have little impact.
The Erie Canal has always been my favorite. Initiated by a Clinton who wanted to be President (DeWitt Clinton, governor of NYS), the canal was completed in 1825. Because it connected Albany, NY to Buffalo, NY, people and goods in…