The War on DrugsThe Disastrous Consequences of Well-intended

Government Action.

Prohibition Doesn’t Work

Prohibition does NOT stop consumption.

It merely drives markets Underground.

Unintended consequences of driving these markets

underground.

Prohibition Increases Violence

Monopoly Power

Risk of Overdose

The Evidence

Economics predicts the adverse effects of black markets.

The evidence confirms these (unintended) effects.

2 Major Periods of Prohibition in US:

Federal Alcohol Prohibition (1920 – 1933)

Current War on Drugs (1971 Present)

In both periods we witness increases in Homicide Rates that correlate to enforcement of this Prohibitions.

Moreover, the UNDERGROUND NATURE of black markets have (several) other negative effects

Other Negative Effects

Legal disputes between producers cannot be solved

under the legal system Violence solves them.

Consumers can’t report a bad quality product to the

Bureau of Consumer protection

The lack of Legal, visible options to impugn the

reputation of Bad Faith producers/dealers leads to:

Low quality Drugs

Less predictable quality Drugs

…which increases the risk of Overdose and

Death!!!

Other Negative Effects

Law enforcement spends resources to Enforce

Prohibition.

The time spent could be used to chase real

criminals… (murderers, thieves and rapists)

…NOT SICK PEOPLE!!!

Prohibition perpetuates Monopolies/Cartels.

Big cartels are happy with Prohibition.

Reduction of Drug Use

If your goal is reduction of consumption, THERE ARE

OTHER POLICIES AVAILABLE!!!

TABACO Policy Regime:

Legal & Regulated.

Minimum Smoking Ages

High Tax Rates To finance extensive EDUCATIONAL

(and Rehabilitation) Programs.

…could keep the consumption relatively

low, while avoiding the Violence associated

with black markets.

Counter-Intuitive

Prohibition are not the most effective way to

reduce the consumption of a good???

Economics point out that Prohibition generates

black markets.

And black markets leads to other adverse

effects.