Sunday, September 11, 2016

The Importance of Local and State Power

        For the town of Breckenridge CO state law says it is legal to possess and sell marijuana recreationally according to Amendment 64 passed in November 2012, while Federal law bans its use in all states. On January 1st, 2014, Breckenridge Cannabis Club (BCC) started selling marijuana for recreational use on Main Street and reaped lucrative profits. After a year of town council votes and deliberation, local residents overwhelmingly voted to keep dispensaries off of the Main Street and forced BCC to move.

         This situation in Breckenridge, CO resembles what Tiebout thinks the role of government should be. Rather than having federal restrictions apply to all people – people with heterogeneous preferences – local laws and regulations allow people to move to the locality that best fits their needs and wants. One important factor that is not included in Tiebout’s model but at work in Breckenridge is the ability for the government to “adapt to the preferences of consumer voters”. For Breckenridge, the town government was able to adapt to the preferences of the people in a way that could never happen at a federal level. Because of heterogeneous preferences, local governments function best because people “vote with their feet” and exert influence on their local government to better meet their preferences. 



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