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    The moral hazard, as it were, may make you earn more than you might otherwise, but take that out and you're still doing better per hour than a waitress.

You quote this as a maxim but it's simply not true. Friends of mine once posted on craigslist:

"Wanted: girls to give a yeti a blowjob on camera. There will be pizza."

Three chicks showed up.

On the other hand, a server at a nice restaurant can make a thousand a night.

    I can't get past supply filling a demand here.

Exactly. If there were less stigma, there would be less money. That's why there's such a glut of amateur porn nowadays- the high end has gone away because acceptance has gone up.

    With prostitution, I would again go back to demand causing a supply.

Prostitution is service. Pornography is performance. Prostitution is individualized attention. Pornography is generalized exhibition. There is no comparison.