| An interesting point on prohibition |
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| Written by Tom Bowman | |
| Monday, 03 November 2008 | |
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The arguments against prohibition are well rehearsed, and will probably not be new to readers of this blog. To sum them up in a series of bullet points (more or less borrowed from the IEA's excellent Prohibitions):
Another interesting point against prohibition, which I had not previously thought about much, is mentioned in Transform's booklet: [I]llegal markets under prohibition always tend to cause concentration of available drug preparations which are more profitable per unit weight. Just as under alcohol prohibition the trade in beer gave way to more concentrated, profitable and dangerous spirits, the same trend has been observed over the past centuries with opiates – from opium (smoked or in drinkable preparations) to injectable heroin, and more recently with the cannabis market being increasingly saturated with more potent varieties. With coca-based products the transformation has been dramatic... It was prohibition which first cocaine powder onto the streets in the first place, and finally produced high-risk smokable crack. Wouldn't it be nice if politician's understood and appreciated the law of unintended consequences?
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Comments (5)
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Friedman & Prohibitionism
written by Craig Pirrong A/K/A StreetwiseProfessor, November 03, 2008
Milton Friedman made this point donkey years ago. Can't recall exactly where in his writings--maybe Free to Choose.
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written by Current, November 03, 2008
Richard Cowan and Mark Thornton have written about this extensively. They call this the "Iron law of Prohibition".
http://www.fee.org/publications/the-freeman/article.asp?aid=801
Another important bullet point
written by Mark Wadsworth, November 03, 2008
If we legalised it and taxed it the same as alcohol or tobacco, we could rake in several billion in additional taxes; that's in addition to the cost savings i.e. police can concentrate on other stuff, fewer drug offenders in prison etc etc.
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written by cash back real estate, November 04, 2008 High income taxes encourages criminal and illegal drug activity because they easily evade and do not pay taxes; thus criminal activity becomes a more attractive avenue than lawful businesses.
The Iron Law of prohibition written by Steve Rolles, November 04, 2008
HI - Im the author of the report. thanks for flagging it up (the pdf version is free to download BTW, and print copies are available on request). I hope people will find it a useful contribution to the ongoing debate and any feedback is very welcome (email: steve -at- tdpf.org.uk)
Regards the 'iron law of prohibition' - I perhaps should have referenced it, and it is not a point we can take credit for originating. On the subject of politicians and unintended consequences, It is interesting to note that The director of the UN's drug agency, the UNODC, recently published a paper in which he outlined three such unintended consequences including; the creation of a 'huge criminal black market'. More details here: http://transform-drugs.blogspot.com/2008/03/unodc-director-declares-international.html Write comment
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