The TImes has a piece on a proposal by a New York City Councilwoman, whose district includes Chinatown, to criminalize the purchase (not just sale) of fake designer merchandise.

Ms. Chin’s proposed bill would make it a misdemeanor to buy fake designer merchandise. If the bill passes, violators like Ms. Whitam could face a $1,000 fine, a year in jail, or both.

Now why is New York City considering such a ban? Knock-off goods creates a burgeoning business in Chinatown, that generates lots of jobs?

Is it their utmost respect for intellectual property and the rights of designers?

Mayor Michael R. Bloomberg, when asked about the sale of fake designer merchandise, said it was something that he would take “very seriously.”

“Protecting the trademark of manufacturers is in the city’s interest and the country’s interest, otherwise people wouldn’t come here and sell things and create things,” Mr. Bloomberg told reporters during an appearance in the Bronx.

Yeah, I’m not particularly persuaded that Michael Bloomberg has become a champion of property rights. What other reasons could there be?

Ms. Chin’s office said the counterfeit trademark industry cost the city $1 billion a year in tax revenue.

Ah, there you go. $1 billion in taxes. And these would presumably be taxes on the wealthiest people (who else can afford to spend a few thousand dollars on a bag). So that fits in nicely with NYC’s m.o.

But, what are the unseen costs here?

“It’s kind of a Catch-22,” Mr. Houston said, gesturing to the vendors around him as he explained his view of Ms. Chin’s proposal. “It’s illegal because it puts people out of work for the real thing, but how many people will be out of business if this passes?”

So even if it generates $1 billion in tax revenue, what will the cost be to lost jobs, tourists visiting Chinatown to go shopping (and presumably spend money elsewhere), and the lost enjoyment of citizenry to look fresh to death without spending an arm and a leg?

What does Councilwoman Chin propose to people who will no longer be able to purchase knock-off Burberry bags?

People who want a designer handbag, Ms. Chin added, should consider buying the real thing.

“What happened to the traditional value of saving up for something you really want that’s valuable?” she asked. “If you really like it, save money to buy the real thing.”

Marie Antoinette would be proud. Let them eat cake! Let them buy Prada!

No, people can’t afford these costly items.

Many of those interviewed in Chinatown on Tuesday, however, insisted that not everyone can afford the real thing, and that they should have the option of spending less for a purse that, at first glance, looks nearly indistinguishable from a bag with a designer label.

“I think people should have the option to buy what’s in their budget,” said Sherise Jackson, 27, who lives in New Jersey. “I like fashion for an affordable price, and not everyone can afford $300 or $500 for a bag.”

She fingered a scarf with Burberry’s trademarked tartan check pattern, and asked the price. “Ten dollars,” came the reply.

Will this prohibition even work? Probably not. This sentence really sums it up:

Ms. Chin said her proposal was meant to stop the demand for imitation designer wares for which her district has become known.

Prohibitions will not “stop demand.” They may increase the costs, but fashionistas will still clamor for discount imitation Coach bags. Even if the price doubles, it will still be significantly less than the market price. Or, alternatively, a series of knock-off shops will pop up across the river in Jersey. Ship the jobs there! But demand will not stop.

“In Chinatown, people can come and shop for some really authentic goods, and we want them to really experience the neighborhood, not just come down and buy these fake knockoffs,” she said. “We want to be known for our museums, our shops, our restaurants.”

Yes, the person in the best position to determine what a neighborhood is best known for is a government official. Of course, who cares what the market thinks?

“In Chinatown, people can come and shop for some really authentic goods, and we want them to really experience the neighborhood, not just come down and buy these fake knockoffs,” she said. “We want to be known for our museums, our shops, our restaurants.”

(Obviously I put aside the violation of federal intellectual property law. I do not think this matters, at all, to Councilwoman Chin.)

Update: Tangentially related aside. When Sonia Sotomayor worked in Private Practice, I believe she worked in prosecution of knock-off goods.