Originally posted by Aeson
View Post
Because you can't say an owner-operator's income is all wages, most of it would be from ownership if you did separate it out. I specifically said wages.
to give a concrete example, some friends of mine are hired every harvest season to pick marijuana. they earn very good money for doing so because what they are doing is illegal and the owners of the weed farms need trustworthy people; they are paid a premium for running a risk and keeping quiet. yet picking a plant is a low value activity, and after legalisation the wages will fall to be more in line with the wages of other people who pick plants because these premiums will cease to exist.
Compare wages paid to workers between those ecstasy factories and coca/poppy farms. Alcohol and tobacco don't have any good info to offer. Tobacco was never illegal so there's no comparison to be made. Alcohol was only illegal for a relatively short period of time, and much of the input into it's production was still legal.
With legalization wages will increase. Production will move out in the open where workers have legal recourse. Much of production will move to developed countries where pay is higher. Almost all of production will be more efficient, with more product produced per worker, using methods which require more technical jobs. Transport/seizure/protection/corruption costs will be vastly reduced leaving more of the value of the product to go towards ownership and production.
Comment