tag:blogger.com,1999:blog-2830084253401570472.post9175097944068647922..comments2024-03-28T09:22:36.967+13:00Comments on Offsetting Behaviour: GST and the price of methEric Cramptonhttp://www.blogger.com/profile/15831696523324469713noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2830084253401570472.post-73558367000615722362012-01-05T14:46:23.019+13:002012-01-05T14:46:23.019+13:00@fibby: My only point of reference really is Break...@fibby: My only point of reference really is Breaking Bad, and that sounds more like contractors. But your analysis sounds right.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-30045426771238781222012-01-05T11:21:49.848+13:002012-01-05T11:21:49.848+13:00That depends whether it's most appropriate to ...That depends whether it's most appropriate to treat the cook as an employee or contractor. If they're employees, the meth lab is saving on PAYE by operating illegally. If they're contractors, then as you point out, the saving is on GST.<br /><br />If it's true, as I read somewhere, that cooks are at risk of kidnap by rival producers, that renders them sufficiently under the control of the producer as to be classed as employees. It does seem likely though, that a good cook would want to obtain their own materials, making them more like contractors. The most helpful point of reference for price comparison purposes would be the employment status of labour in a comparable legal enterprise - an industrial chemicals producer, maybe.<br /><br />If the legal enterprise employs labour on contract, you'd expect their prices to show a greater impact from the GST rise than the meth lab. If the staff are employees, on the other hand, the price impact would be similar across the two enterprises, as both would see the new rate of GST affecting their physical inputs only.Gaelhttps://www.blogger.com/profile/07556494270770913766noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-19633493025241476912012-01-03T22:54:41.173+13:002012-01-03T22:54:41.173+13:00Yes, GST on legally purchased physical inputs. But...Yes, GST on legally purchased physical inputs. But I'd be surprised if meth contract cookers charged GST to the wholesaler...Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-80724173624139274492012-01-02T20:47:25.992+13:002012-01-02T20:47:25.992+13:00"Since a smaller proportion of their inputs w..."Since a smaller proportion of their inputs will be GST-affected..."<br /><br />How'd you figure that?Gaelhttps://www.blogger.com/profile/07556494270770913766noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-55707418579642737392011-12-21T14:12:39.738+13:002011-12-21T14:12:39.738+13:00getting harder to afford good drugs Ericgetting harder to afford good drugs Ericpeterquixotehttps://www.blogger.com/profile/15873112816453062068noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-9631361000165300722011-12-20T15:13:58.401+13:002011-12-20T15:13:58.401+13:00Know what, you're right. Second read, they'...Know what, you're right. Second read, they're lauding successes against a counterfacutal of increasing availability and continued growth in meth supply. Alternatively, we could read it as that meth's a mature market and pretty much everyone who wants to use meth is doing it.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-22942032311784978682011-12-20T14:31:17.411+13:002011-12-20T14:31:17.411+13:00The media release is about success in containing t...The media release is about success in containing the growth of the trade, not reducing supply. But still, I'm happy to see that prohibition of my favourite cold drugs has had no great impact. Hopefully the ban will get reversed.Dave Guerinhttp://www.ed.co.nznoreply@blogger.com