A Lesson About Moral Hazard

A Lesson About Moral Hazard
Since marijuana legalization in Canada, the black market continues, revenues are not materializing, the police seem to be no less busy, and a new variety of impaired driver has hit the streets. The Epoch Times
Gerry Bowler
Updated:

Not too long ago, governments used to prohibit behaviour that was bad for its citizenry. Gambling was one such activity; it is a practice in which those insufficiently aware of statistical probabilities are induced to lose money to those with a deeper knowledge of the odds—a sort of tax on the stupid.

For complicated reasons, certain types of gambling were allowed—pari-mutuel betting on horse races, owning a ticket on the Irish Sweepstakes—but no one could open a casino, sell lottery tickets, operate a betting parlour, or run a numbers racket. Governments knew the poor were the primary victims and that a certain proportion of gamblers would ruin their lives and those of their families by becoming addicted.

Gerry Bowler
Gerry Bowler
Author
Gerry Bowler is a Canadian historian and a senior fellow of the Frontier Centre for Public Policy.
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