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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