Prohibition versus Legalization Do Economists Reach a Conclusion on Drug Policy? by Mark Thornton

What to do?  Keep current policy on drug prevention?  Increase spending and efforts?  Decriminalize and/or legalize drugs?

War on Drugs  Economists have at the forefront of the debate.  Criticism of ineffectiveness  Unintended Consequences  Violent crime  Corruption of police  Corruption of public officials

War on Drugs  Costs (2005):  US Gov’t cost report on drug control; $12b  In a separate US Gov’t report;  Incarceration: $30.1b  Police protection: $9.1b  Legal costs: $4.5b  State & Fed corrections: $11.0b  Total:$34.7

Survey of Economists  15% favored status quo  21% favored increased efforts  58% favored a change in policy  71% favored legalization or decriminalization  <2% favored stiffer sentences and increased enforcement budgets

Survey of Americans  36% favored legalization or controlled distribution of most drugs  40% believe decriminalization of cocaine would reduce violent crime  3-1 margin preferred addiction treatment and counseling for drug users over fines and/or imprisonment

Demographic Characteristics  CharacteristicReformersProhibitionists  SexMaleFemale  RaceWhiteNonwhite  EducationCollege or moreGrade School  OccupationProfessional/FarmerClerical/manual  Income levelHigh and MiddleLow  AgeYoung and Middle50+ years  RegionNortheast and WestSouth  ReligionJewish or noneProtestant  PoliticsIndependentDem. and Rep.

Positions Against  The permanent reduction in price caused by legalization is likely to have a substantial positive effect on use, particularly among the poor and young  Prohibition shows that the society can make a dent in the consumption of drugs through laws.

Positions Against  The estimate of al the effects of drug use needs to be improved substantially before it can be determined whether the benefits outweigh the costs of decriminalization.  The elasticity of demand is not zero;  Decriminalization will sharply lower prices  Will lead to a noticeable increase in use of drugs, new users and addicts

Positions For  Taxpayers, who are usually not associated with illegal drug activity, foot the bill of the war on drugs  Tax revenues from legalized drugs could fund drug education and rehab

Positions For  Prohibition has, at least in part, led to;  Increase in street crime  Increase in gang activity  Police corruption  Congested courts  Overcrowded prisons  The repeal of alcohol prohibition led to the demise of bootleggers

Conclusion  The general consensus among drug-policy researchers and economists is in opposition to prohibition  Still, only timidly in support of decriminalization and even more timidly in favor of legalization

Conclusion  The ONLY feasible way to eliminate the black market for drugs is to legalize them  The legalization of drugs will lead to some, maybe different but nonetheless, problems  Much more research needs to be conducted before a legalization policy is enacted

Work Cited  Thornton, Mark Prohibition versus legalization. The Independent Review, Winter 2007, pp