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January 21, 2009 - 06:25 pm
News Feed: National
Why is it that when the economy tanks, politicians forget all about basic economics?
By (), Red StateLet’s review: As prices on a product go up, demand for a product decreases. As prices for a product go down, demand for a product increases. It’s basic economics.
Florida is just the latest place where that’s happening. To close a gap in the state budget, the legislature is considering raising the cigarette tax. Being no fan of smoking, I’ve got zero problem with that. The problem, though, is that they want to raise the tax to balance the budget.
Governor Crist, who had been totally against the idea, is changing his tune.
Efforts to increase the tax by a dollar are gaining support as the budget continues to fall.
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