Episode 148: The Cost of Living
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The Economics of Goliath
When we make certain products illegal, we create this unintended consequence and we saw this play out recently recall the problem with certain marijuana vaping liquids causing health problems. When a product is illegal, market participants have no recourse to government protection when they're harmed. If the marijuana eliquid had been legal, people who were harmed could have sued the manufacturers. In turn, the fact that they could be sued would have given the manufacturers a greater incentive to guard against the harmful product making it to market.
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