Comments on: Drug War Progress But Not

By: MichaelW

MichaelW — Sat, 06 Sep 2008 15:01:09 +0000

It’s a good point about the taxes. I’m of two minds there: (1) taxes are an effective way to raise the costs to behavior that has social costs which are hard to quantify, but (2) taxes distort markets and often prove to be enticing means for lawmakers to enrich the state while handing out political favors (i.e. rent seeking). Balancing those two considerations is awfully difficult.

Maybe not having taxes or regulations on any drugs is a good idea, but it’s pretty much a pipe dream at this stage. Lee’s right that the taxation angle is the most likely path to decriminalizing drugs. And, again, as Mike points out, there are good reasons to have regulation of drugs such the externality costs of degrading the power of antibiotics (similar to the forced coercion of vaccinations — an anti-libertarian policy — protecting the herd, the recent failure of which is having real world consequences such as the return of measles).

The real problem is who decides where the line is drawn, and how do we police the deciders? If no effective policing is really available, then you’re really left with a choice of no regs and no policing or complete government control. My personal opinion is that given the two choices, freedom is by far the better despite the negative externalities. However, if there were an effective way to put regulations in place, such that the progenitors of the externalities more directly bore the costs, I’d be all for it.

By: MikeR

MikeR — Sat, 06 Sep 2008 14:39:34 +0000

Excellent point about legalization that reveals a bit of lazy thinking on my part. I had grown accustomed to using the term legal (drugs) as the antidote to illegal (drugs). It is not, as Lee and Dan point out. The real answer is to remove all external market controls and allow the free market to operate. I should have known this.

Now this causes me to think about the whole set of currently legal drugs that require prescription. Should all of them be opened to the free market also? My gut response is yes. Basically, we should each be able to make personal choices. But what about when your personal choice endangers me? How about the indiscriminate use of antibiotics which leads to the creation of “superbugs”. Doesn’t that affect us all?

Seems kinda like the seat belt law. I don’t care if you wear a seat belt, you are only endangering yourself. But, what about talking on your cell while you drive? Seems like you are endangering me. I’d like to manage that.

Thoughts?

By: Lee

Lee — Sat, 06 Sep 2008 05:28:48 +0000

Dan is correct. You’ll notice that the “but we could tax them!” appeal is wound up pretty tightly and deeply in almost all legalization arguments. I personally believe that if it ever is won, any legalization effort will be won on the rationale of that government powergrab. The state would levy so many taxes on legalized drugs, the black market profitability of them would probably increase. Just as cigarette smuggling rather than drugs is more profitable in Canada, due to severe market price distortions through heavy taxation.

By: Dan

Dan — Sat, 06 Sep 2008 03:59:52 +0000

It would reduce it. Government sanctioned drugs would be released at one price. The black market would charge lower prices. The villains always find a way.

By: MichaelW

MichaelW — Sat, 06 Sep 2008 02:27:37 +0000

Legalizing drugs would drastically reduce the profits gained in the black market.

Hell, it would pretty much eliminate the entire market.

By: Dan

Dan — Fri, 05 Sep 2008 02:01:41 +0000

“We have spent billions but we are unable to reduce the flow with our current tactics. The nexus of terrorism and drug money continues to grow.”

If you want to watch a really great look at the drug trade from the inside out. Netflix a tv series called TRAFFIK (1989). It is the source material for the Similarly named American film, that explores the drug trade. It’s based in the Heroin trade from the poppy fields in Afghanastan, to it’s direct effect on England, who is suffering the same issues as we in America face today. You can literally swap Heroin for Cocaine, and Poppy for Coca, and the results are exactly the same.