Stories From The Nanny State: Black Markets and Loko Smugglers

Today the Four Loko ban came into effect. You can no longer buy Four lokos in Washington State. But for those that live in eastern Washington you can buy them in Idaho and for now Oregon. 

This ban will hopefully serve as a lesson in free market economics.
Besides this ban being a great marketing tool for Four Lokos what else has it accomplished?  Before the ban took effect a large number of people stocked up on Four lokos for resale and others for person consumption. What was worth under three dollars could now be sold for five dollars or more under the table. (Better Return then buying Government Bonds...). This ban also created incentives for people to go on Loko runs to Idaho or Oregon to supply college students with the sweet chemical fruity taste of Four Loko. Just with prohibition, this ban has created a underground market for the drinks.

A lesson in history: Not to long ago Idaho's drinking age was 18 which meant people could cross the boarder from Washington state and get a frosty brew three years before they could in Washington State. This effect caused law enforcement officers to spend a large part of their time enforcing underage drinking laws and not stopping more dangerous crimes. This led to a drain in their local budgets. In the end federal government withheld highway grants and funds from the state unless they changed there laws. Which they later did.

The ban on Four Loko will not stop people from abusing alcohol nor acquiring alcoholic energy drinks. This ban in fact created  incentives to deal the drink illegally and tax free. Will law enforcement go on Loko busts? Will the government be able to stop the transportation of Lokos across state boarders? The obvious answer is no.  They will have about as much luck in apprehending the trade of Four Lokos as they do at stopping underage drinking.  I just hope this is a wake up call for the legislature to see how useless this bans really is. 

Thank you Washington State Liquor Board you created a new market for Four Lokos, popularized the consumption of Four Lokos with underage drinkers and hardcore party animals. And forever proved you inability to understand human nature. By turning Four Lokos into the "forbidden fruit" you just drastically increased the value and sale of Four Lokos.