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Newbie question: Decision for database model
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Larry's response, and your response to it, are great.

I wanted to add a more general point.  No database design should depend on routine creation and deletion of tables. Creating and deleting tables are for programmers and maintenance routines.  If you're creating new tables while your apps are running, you're probably doing something wrong.

So you should definitely look for a solution that doesn't require creating a table every time someone thinks up a new label.