Black Market Economics

Yes, you know where this is going: the War on Drugs. I almost titled this piece "War on Drugs: Enriching the Criminal", but that just seemed too long. Indeed, today's article is about how the government has given the criminals of the world an even more profitable enterprise than racketeering or prostitution.

First off let me assure you that, although I am a college student with shaggy hair, I am not a drug user. I can confidently say that I would pass any screening that could be thrown at me. I do, however, believe in adults having control over their own bodies and what goes into them. In fact, this may be a good time to note that if I were to choose a political party to associate with it would be the Libertarians. Please don't let this alienate you, I just believe in small government, free markets, and total personal freedoms. But I digress...

Drugs, love them or hate them, have been around (and in use) for many centuries, even millennia depending on who you listen to. Jefferson grew pot (and hemp, too) and wrote about it in his diary. Rail workers in the old West sucked on opium to get through the day. Millions and millions of people across the country are getting high as I write this. It's not just dumb kids either. There are businessmen doing coke, housewives taking speed, and your favorite entertainers doing a myriad of different stuff. Oh, and Johnny down the street is drinking a beer. Alcohol is, in fact, a drug.

So where does this diverse group of quiet druggies get their fix. Why, from their friendly local drug dealer of course! And they pay top dollar for it, too. Drug dealers make a pretty penny off of these people and do extremely minimal work. They never have to worry about marketing or writing receipts. They don't have to keep track of finances or pay taxes. The best part is that very few of them actually get caught. The profession is medium-low risk and very high return. Of course, like any group of people, some are out to make trouble. They carry guns and take advantage of people with horrible addictions. These are the dealers you see on the evening news.

Everyone wants drug dealers (and other criminals) out of the streets behind bars, so why is the War on Drugs a bad thing? Well, for one, it has strengthened the industry. It has also made it far more profitable. Organized criminals have all but given up on the classical methods of extortion, prostitution, and gambling in lieu of the more profitable drug trafficking industry.

You see, as government regulation on drugs and the people that sell them got more strict, supply went down. As you can imagine, demand did not. As we all know, as supply is reduced and demand remains constant, prices go up. Prices did rise, making traffickers all the more brazen. With the same production costs and higher wholesale prices, traffickers could actually afford to lose shipments and still turn a nice profit. This influx of new trafficking activity meant that supply actually rose above the baseline levels. The consumer, however, had assimilated to higher prices and the price level remains artificially high. So now you have an enormous flow of money changing hands, going into and out of the country, and no one is paying taxes on it. This creates an issue for the government, because that is a large amount of lost revenue. If, instead, all of these drug users were to get there fix from a bottle of vodka or scotch, the government would be raking in all kinds of money.

Another issue that the government does not like to address is that a larger proportion of the population is using drugs now than ever before. I credit government-sponsored anti-drug rhetoric for providing the dealers the marketing they need to continue to find new clientèle. I had to sit through a lot of that garbage in high school and let me tell you, half the time I was thinking "Wow, that sounds like a blast!" Additionally, I can say from my own experience (and others have agreed) that in high school it was far easier to score some pot than to get a case of beer. In fact, I could more readily get most common drugs of abuse than that case of beer. Why is this? Beer is regulated, you need a government ID stating that you are over 21 to buy it. Drugs are not regulated, anyone can buy them from anyone willing to sell them.

So, here is my solution. Many of you won't like this. Legalize it! And by "it" I don't just mean pot, but all drugs. Like I said, I believe in personal responsibility and personal freedoms. If someone chooses to do cocaine, they will get it from a drug dealer if it is not available legally. We saw this during the prohibition era; just because you make something illegal will not stop people from wanting it and there will always be someone willing to provide it.

Sell drugs at CVS and Walgreens. Make sure to check ID, though or you could be fined. All of the sudden, criminals will not have any business. The drugs you can buy in stores are regulated in strength, quality, and purity. They are produced by reputable companies. There will be a label on the box that has safe dosing instructions and a number to call if you overdid it. Most importantly, though, is that they are taxed like there is no tomorrow. Even with enormous taxes, legal avenues will easily be able to beat drug dealers in price. With these drug dealers out of business, they will be forced to get a real job and their income can be taxed, too. Now that drugs are properly regulated, kids won't have such an easy time getting their grubby little hands on them. The prison overcrowding problem will magically go away. They could even shut some down to save the government some coin. Organized crime will crumble as will it's ill effects such as drive by shootings and busted knee caps. Getting your pot will be as simple as getting your Jack Daniels and you will be a fine, tax-paying citizen.

But won't everyone start doing drugs and stealing cars? No, they won't. People are not stupid. The people that get hopped up on coke and rob a liquor store would have done that if drugs were legal or not. An everyday Joe who smokes a joint after work is less likely to start problems than his neighbor that just downed ten beers. As for the people that do get messed up and go commit a crime, treat them the same as if someone had gotten drunk and did the same thing. Charge people with crimes that effect the people around them. I fully support someone getting the book thrown at them if they drive on drugs or if they steal on drugs. But drugs are not the problem.