Over a year after reform advocates first began predicting swift legislative victory, the recreational use of cannabis remains illegal in New Jersey. When Governor Murphy and Senate President Sweeney agreed on a $42 per ounce flat tax in February, legalization supporters once again hoped for quick adoption of New Jersey Assembly Bill 4497 (“A4497”). Once again, the much-publicized March 25th vote was called off due to lack of support. Now legislators have a limited window to act before the state budget deadline on July 1st.

The principles of economic thought tells us that investments would flow to places with less capital accumulation, the reason being is that there would be less competition, thus a higher rate of return on investments. Indeed, as Adam Smith noted in the Wealth of Nations, capital accumulation would be the inevitable hindrance to economic growth.

Often we observe that two pieces of data, which are not supposed to have any relationship, appear to have very high visual correlation. For instance, we may discover strong correlation between the intensity of a dog barking and movements in stock prices. One is then tempted to take advantage of this discovery in order to make money in the stock market.

It has often been stated, and even more frequently implied, that we should choose to cooperate rather than compete in society. For instance, FDR said “Competition has been shown to be useful up to a certain point and no further, but cooperation, which is the thing we must strive for today, begins where competition leaves off.” Bertrand Russell expressed it even more sharply when he said, “The only thing that will redeem mankind is cooperation.”

Congress, and particularly the Democrat-controlled House of Representatives, seems determined to see the end of the Trump Administration before the 2020 vote. Although House Speaker Pelosi claims she is not seeking impeachment, she’s accusing the president of “covering up” something. However, she won’t say what until she can do more investigating.

But Trump’s opponents on both sides of the Congressional aisle don’t seem so enthusiastic about challenging the president when he actually does abuse his Constitutional authority to pursue a more aggressive policy overseas.

Mark Thornton joined our friend John O’Donnell at Power Trading Radio where they discussed 12 principles of Austrian economics, and how they compare to other schools of thought. Topics include trade, entrepreneurship, and prices.