Oregon Becomes Third State to Legalize Marijuana

It looks
like Oregon is about to become the third state to legalize
marijuana. With more than 50 percent of precincts
reporting
, the results are 55 percent in favor, 45 percent
against. Residents of Washington, D.C., also
voted
to legalize marijuana today. 

Oregon’s
Measure 91
, also known as the Control, Regulation, and
Taxation of Marijuana and Industrial Hemp Act, combines elements of
Colorado’s Amendment
64
 and Washington’s I-502.
Like both of those initiatives, it allows adults 21 or older to
purchase and possess up to an ounce of marijuana at a time. Like
Amendment 64, it allows nonprofit transfers of up to an ounce. That
provision protects people from arrest for sharing pot, which
otherwise can be treated as criminal distribution, even if it’s
limited to passing a joint. 

Measure 91’s decriminalization of marijuana use does not apply
to consumption in any “public place,” defined as “a place to which
the general public has access.” By comparison, Colorado prohibits
“consumption that is conducted openly and publicly,” while
Washington forbids consumption “in view of the general public,”
both of which seem to cover less ground. Like Colorado (and unlike
Washington), Oregon’s initiative allows home cultivation, but with
stricter limits: up to four plants and eight ounces of usable
marijuana per household, compared to six plants and whatever amount
they produce per adult in Colorado. 

The Oregon initiative takes a different approach to taxation
than Colorado or Washington, both of which imposed levies based on
a percentage of wholesale and retail prices. Oregon’s initiative
instead would impose taxes on cannabusinesses based on weight: $35
per ounce of buds and $10 per ounce of leaves, plus $5 per immature
plant. 

One distinct advantage of the Oregon initiative is that it does
not change the standard for driving under the influence of
intoxicants (DUII, a.k.a. DUID). Under current law, convicting
someone of DUII requires showing
that he was “affected to a noticeable degree” by marijuana or
another controlled substance, based on
the “totality of the circumstances.” By contrast, Washington’s
current rule, established by I-502, says any driver whose blood
contains five or more nanograms of THC per milliliter is
automatically guilty of DUID, a standard that in
effect prohibits driving
by many daily consumers, including patients who use marijuana as a
medicine, even when they are not actually impaired. 

Amendment 64 did not directly change Colorado’s DUID law, but
after it passed the state legislature approved a law that created a
rebuttable
presumption
” of DUID at five nanograms, which in practice may
have the same impact as Washington’s law. Oregon’s initiative
instead instructs the state Liquor Control Commission, which as in
Washington would be charged with regulating the newly legal
cannabis industry, to study “the influence of marijuana on the
ability of a person to drive a vehicle” and advise the legislature
on whether changing Oregon’s DUII rule is appropriate.

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The Libertarian Party in Governors’ Races: Three Spreads Beat (At Least), With One Possible GOP Loss

Gleaned mostly from the Libertarian Party’s own updating
page of news of note
from election night, herewith the governor
races in which the L.P. is now breaking 2 percent. (There aren’t
many.):

•Dan Feliciano of Vermont is very much beating the
spread at
4.36 percent 
in a race currently un-called but with
Democrat Peter Shumlin with a narrow lead. This could be
a real chance for GOPers to get mad at Libertarians, whether for
justified reasons or not. (This is one the L.P’s own page hadn’t
caught.)

•Andrew Wyllie in Florida, beating the spread handily in a race
where Republican Rick Scott won, so this is an interesting data
point for the “who do L.P. candidates possibly divert votes from?”
debate,
at 3.76 percent.

•Keen Umbehr in Kansas is beating the spread handily, again in a
race with a Republican, Sam Brownback, winning, with
3.86 percent
.

•Barry Hess in Arizona
at 3.83 percent
–far better than the 2.2 percent he got running
for the same office in 2010.

•Mark Elworth in Nebraska
at 3.35 percent
.

•Andrew Hunt in Georgia
at 2.44 percent
.

•Dee Cozzens in
Wyoming at 2.41
 percent.

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Scott Walker, Rick Snyder, Rick Scott All Win; Conn., Vt., Mass. Races Still Too Close to Call

As their prospects dimmed on the approach
to Election Day, Democrats shifted goal posts. They conceded they
wouldn’t win the House. They conceded they’d probably lose the
Senate. Over the last week they settled on making the election
about Scott Walker. If
Walker lost
, the conventional wisdom went, it didn’t matter how
well Republicans did elsewhere. Well, Scott Walker won. So did

Rick Synder
in Michigan and
Rick Scott
in Florida, two other Republican governors who
dabbled in union reforms and were targeted by Democrats in close
races.

In the meantime, as of 11:00 p.m. ET, gubernatorial races in
solidly Democrat Vermont, Connecticut, and Massachusetts are all
too close to call. NPR called
the Vermont race for incumbent Democrat Peter Shumlin but no one
else has. Connecticut has an incumbent Democrat too, one that isn’t
so popular despite
raising taxes, increasing spending, and demonizing guns
.

Get the latest results at
Reason 24/7
.

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“A Brief Note On Capitalism”

From Elliott Management’s Q3 letter, by Paul Singer

A Brief Note On Capitalism

From time to time we find ourselves compelled to write a few words in defense of capitalism. Capitalism is a system according to which capital is owned by private citizens, who in turn determine its price and flow by interacting with one another. Capitalism implies that private citizens get to keep most of the fruits of their labor or the profitability of their capital. Capitalism is neither a “state of nature” nor a primitive scrum. It can work (i.e., create value for owners and for society while being acceptable to the citizenry, including those without capital) only with appropriate rules of fairness and honesty, and workable standards of disclosure. To these factors must be added the ability for people, in a meritocratic way, to have a chance to participate in capitalism. The proper combination leads society to buy into the concept that the individual freedom to own property leads to the most efficient allocation of resources, which in turn results in the highest economic growth and prosperity. Capitalism is never perfect, but the closer society adheres to its general principles, the better it is for the population at large.

If you take away these elements and put the bulk of power in a society in the hands of a central authority, bureaucracy and/or central banker, then all of the natural imperfections of human decision-making – including the problem of unintended consequences, the inability of central planners ever to have enough information to make wise decisions about the allocation of resources across an entire society, corruption, arrogance, and the fallibility of human nature – are exacerbated and concentrated. It is no surprise that governments do almost everything worse than the private sector, and that private philanthropy has created so much more societal value per unit of human effort and wealth than governments have in terms of efficiently and creatively addressing problems.

When the governmental impulse is to make all major decisions for people and control almost every aspect of their lives, the “cost” is inefficiency, ineffectiveness, unfairness and tyranny (see the old Soviet Union for details). Having the government choose winners and losers does not lead to better or fairer results than allowing merit and private effort to dictate those outcomes. When it is time to take an action related to life, health, work and career, there is no reason to prefer a government decision over a private decision. The distortions imposed by governments’ exercising control over things that do not need to be controlled by governments are almost without end. Shortages and inflation are traditional consequences of controlling prices. Poor growth, emigration and job losses are the repercussions of making the economic environment unattractive for employers and employees by taxation, regulation, corruption, disdain for the rule of law, and rigid employment policies. It is no accident that the more government does, and the more control government has or is given over people’s lives, the greater the level of corruption and cronyism – even (or especially) in those countries that have populism as their (phony) rallying cry.

The question that governments should always be asking is: How can we make the economy work better, grow faster, provide the best full-time job opportunities, allocate capital more efficiently, help the largest number of people get rich or pursue their destinies, and provide the fairest and most open platform for people to live their lives without interference and to experience the worthiness of achievement or career or parenthood and family? Sadly, we cannot think of many leaders in the developed world who are pursuing policies with that combination of goals in mind.




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“Consistency Breeds Complacency”

Stocks have risen so often in the last five years that many investors may take further gains for granted even after the latest slump, according to Wells Frago’s Jim Paulsen. As Bloomberg reports, Paulsen’s ‘US stock market consistency indicator’ (which tracks the ratio of monthly gains and losses for the preceding five years), reached 3 for the first time since April 1999 – less than a year before the end of a bull market driven by Internet stocks – a level not seen since the late 1920s. Of course, it’s different this time, but as we noted earlier, the consensus bull case is unbreakable and as Paulsen notes “Consistency breeds complacency,” or a sense of comfort among investors that’s at odds with potential losses.

 

 

As Bloomberg explains,

“Consistency breeds complacency,” or a sense of contentment among investors that’s at odds with potential losses, Paulsen wrote.

 

“While the stock market did decline aggressively earlier this month, its quick and nearly full recovery, if anything, has probably boosted complacency.”

 

Complacency earlier this year reached levels seen in the 1990s, the 1950s and the 1920s, according to Paulsen, based in Minneapolis. His conclusion was derived from an indicator that combined the consistency gauge with a stock-volatility index, also tied to Shiller’s data.

*  *  *




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Third Parties in Senate Races: Still Not Their Year

Just a quick spotlight on non-Democrat/Republican Senate
candidates who have managed to pull substantially more than one
percent, so far,
using RealClearPolitics’ numbers
:

•For the Libertarian Party, the
controversial
Sean Haugh of South Carolina is now pulling 3.6,
substantially more than the current very narrow spread between
currently in-the-lead Republican Thom Tillis and Democrat Kay
Hagen.

•But! A L.P. Senate candidate I had not been following at all is
doing even better, Kansas’ Randall Batson,
currently with 4.3 percent, in a race where the number two is also
an Independent, Greg Orman. Batson’s current numbers beat the
spread between Orman and currently in-the-lead Republican incumbent
Pat Roberts.

•In Virginia,
Robert Sarvis
is failing to carry over the momentum of his over
6 percent governor results last year, currently at just 2.7, still
a substantial spread-beat between winning Republican Ed Gillespie
and losing Democrat Mark Warner. [UPDATE: In ten minutes
since posting the race has reversed, with Warner now slightly
ahead. All the “winning/losing” declarations in this post are as of
the timestamp.]

•Gaylon Kent, L.P. Senate candidate in Colorado, now at 2.4,
nowhere near the spread between winning Republican Cory Gardner and
losing Democrat Mark Udall.

•In South Carolina, reality TV star of Bravo’s Southern
Charm
, former Republican state treasurer with a checkered past
Thomas Ravenel is pulling 7.1 percent as an Independent.

That’s all the Senate races in which
RealClearPolitics is showing a non-major-party
candidate with over 2 percent. And while
RealClearPolitics is currently missing it, L.P. Senate
candidate in Illinois Sharon Hensen is
at 3.64
, and L.P. Senate candidate from Kentucky David
Patterson
is at 3.07
 (neither are beating the major party
spread).

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Rand Paul Laser-Focused on Hillary Clinton for Some Reason

RandIn
the wake of Republican Sen. Mitch McConnell’s victory over
challenger Alison Lundergan Grimes, Rand Paul—who attended
McConnell’s victory rally—had just one name on his mind: Hillary
Clinton.

Fox News asked Paul about the win; Paul framed the election as a
referendum, not just on Obama, but also on Clinton, who
actively campaigned
on behalf of Grimes and Democratic
candidates in other states. According to
Mediaite
:

“Mrs. Grimes ran as a Clinton Democrat,” said Paul. “She tried
to disassociate herself with President Obama, so she tried to
attach herself to Hillary Clinton, but it turns out Hillary Clinton
doesn’t have many coattails in Kentucky.

Later in the interview, Paul repeated this line of thinking,
saying the GOP wins are a “repudiation basically of the president’s
policies but also Hillary Clinton.” While he said people were
trying to say that Hillary and Bill Clinton are “somehow
better for Democrats” than Obama is, in Kentucky, “they were
soundly rejected.”

Eventually, Bret Baier couldn’t help but point out that Paul was
taking every possible opportunity to trash Clinton, his most likely
opponent in the 2016 presidential race were he to win the
Republican nomination.

In other words, if anyone is still on the fence about whether
Paul is going to run for president: He is going to run for
president.

As I have noted previously, a Paul vs. Clinton showdown would
invert some the traditional Republican and Democratic Party
positions on
civil liberties, foreign policy
, and
drug policy
. That is undeniably exciting for libertarians.

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How Will Congress Respond to Marijuana Legalization in the Nation’s Capital?

Early
returns indicate that Washingtonians
are approving marijuana legalization in the nation’s
capital by a margin of more than 2 to 1. With about 6 percent of
precincts reporting, the
results
are 69 percent in favor, 31 percent against. The
lopsided vote, which is consistent with the most recent
poll numbers
, reflects a
dramatic turnaround
in black voters’ views on legalization,
apparently driven by concerns about marijuana prohibition’s
racially disproportionate impact. 

Nationwide, according to a 2013 ACLU
report
, blacks are about four times as likely to be arrested
for marijuana possession as whites, even though they are about
equally likely to smoke pot. In D.C., blacks are eight
times
 as likely to be busted for pot. D.C. also has a far
higher marijuana arrest rate than any other jurisdiction in the
country: 846 per 100,000 residents in 2010, compared to 535 in New
York City (D.C.’s closest competitor) and a national average of
256. 

Initiative
71
 legalizes home cultivation of up to six plants by
adults 21 or older, along with possession of up to two ounces and
transfer of up to an ounce at a time “without remuneration.”
Residents who are not horticulturally inclined and do not have
friends who are will be out of luck unless the D.C. Council

approves
a system for commercial production and distribution.
The council
heard testimony
on that issue last week, and The Washington
Post
 reports
that “a majority…has vowed to also take up legislation early next
year that would establish a system to sell and tax marijuana.”

Whatever D.C. voters and legislators do can be undone by
Congress, which has 30 days to
overturn Initiative 71. Congress also can block Initiative 71 by
forbidding D.C. to spend money on implementing it, as it did for
years with the medical marijuana initiative that D.C. voters
approved in 1998. One possibly hopeful sign: When the D.C. Council
made possessing up to an ounce of marijuana a citable offense
subject to a $25 fine earlier this year, Congress let the law take
effect.

Rep. Andy Harris (R-Md.)
responded
with an amendment that would have barred the District
from spending public money “to enact or carry out any law, rule, or
regulation to legalize or otherwise reduce penalties associated
with the possession, use, or distribution” of a controlled
substance. The House approved Harris’ amendment in June, but it
was dropped from
the final version of the spending bill. Harris said he would

try again
 if Initiative 71 passed.

The Obama administration
opposed
the Harris amendment in language that suggests it would
also oppose attempts to override Initiative 71: “The Administration
strongly opposes the language in the bill preventing the District
from using its own local funds to carry out locally passed
marijuana policies, which…undermines the principles of States’
rights and of District home rule.” Today Sen. Rand Paul (R-Ky.)

said
D.C. should be free to set its own marijuana policy. It
will be interesting to see how many Republicans agree with him.

On a related issue, the House last May
approved
an amendment aimed at stopping the Drug Enforcement
Administration from undermining state laws allowing medical use of
marijuana. The amendment, which explicitly applied to the District
of Columbia, was introduced by Rep. Dana Rohrabacher (R-Calif.) and
received votes from 49 Republicans as well as 170
Democrats. 

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Banal Thought of the Night: Katie Couric Says If You Don’t Vote, You Can’t Complain!

“Voting is a responsibility I take very
seriously…and always feel great about being part of the process.
Everyone complains about government dysfunction but I feel that you
don’t have the right to complain if you don’t do anything about
it!”


Read more from Katie Couric.

If there’s one right that really is inalienable, it’s the right
to complain about government dysfunction (and private-sector
dysfunction, too). Whether you vote or not. I like to vote too and
to (hopefully) influence politics via writing and other activities.
But if you don’t want to do any of that, it sure as hell doesn’t
mean you can’t voice opinions.

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Washington’s Blinding Hypocrisy: A Tale Of Two Elections In The Ukraine

Authored by The Ron Paul Institute's Daniel McAdams via Contra Corner blog,

The US government loves to “promote democracy” overseas, often at the barrel of a gun. Strangely enough, however, it often “deplores” actual elections being held in such places. Take Ukraine, for example. An election held last week by a group that forcibly seized power from a legitimately-elected government was hailed by the US administration as a great democratic achievement.

Said John Kerry about last week’s parliamentary election held by the post-coup government in Kiev:

We applaud Ukraine’s commitment to an inclusive and transparent political process that strengthens national unity. … The people of Ukraine have spoken, and they have again chosen to chart the course of democracy, reform, and European integration.

In this US-approved vote, the parties disapproved by the US were harassed and even essentially banned. But that’s OK.

However in eastern Ukraine, which refused to recognize February’s US-backed coup in the western part of the country, parliamentary and presidential elections scheduled for tomorrow are scorned and even “deplored” by the US administration.

The White House condemned tomorrow’s elections in eastern Ukraine in no uncertain terms:

We deplore the intent of separatists in parts of eastern Ukraine to hold illegitimate so-called local ‘elections’ on Sunday, November 2. If held, these ‘elections’ would contravene Ukraine’s constitution and laws and the September 5 Minsk Protocol.

So much does the US administration hate the idea of unapproved people voting, that it even refused to call them elections, placing the very term in “scare quotes.”

Shortly after the February coup in Kiev, referenda were held in Crimea and in parts of eastern Ukraine to determine whether to remain tied to Kiev or declare independence from the new regime. Those elections were also condemned by the US.

“We reject the ‘referendum’ that took place today in the Crimean region of Ukraine.  This referendum is contrary to Ukraine’s constitution,” said the White House immediately after the March vote in that region. The February coup was also contrary to Ukraine’s constitution but that did apparently not bother Washington.

Similarly, when referenda were held in eastern Ukraine this spring to determine that region’s future course, the White House spokesman condemned them as “illegal under Ukrainian law and a transparent attempt to create further division and disorder.”

When the wrong people hold votes, it seems, “division and disorder” are the result.

Those who overthrow democracy by force are legitimized – you might even say laundered – by an election they had no legal right to hold in the first place, while those who stood by previously-elected leaders and scheduled elections as a way out of the crisis caused by US interference are condemned, ignored, and not even recognized by the US government.

So here is the real message from the US government: elections overseas are only legitimate if we have pre-approved the parties allowed to stand and if we have pre-approved the outcome. The election must result in exactly the kind of “pro-West” government that we desire or we will begin destabilization and regime change, if completely ignoring the results does not do the trick.

Is that what John Kerry meant when he said, “you just don’t in the 21st century behave in 19th century fashion”?




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