NO: 216 - The economic benefits of legalizing the drug industry.

By: Kahyee Liew Elena

Critics argue that the battle in the “war on drugs” has been long lost and the government should find other alternatives to fight this war. The “war on drugs” has forced the state to spend billions of dollars on drug interdiction forgoing other crucial aspects such as education, health etc.

The argument presented today, is why shouldn’t government just legalize drugs all together given the perceived benefits? There are some states such as California that has decriminalized marijuana use, but not as far as every drug.

Some argue that it is due to the government losing support. Clearly, it is a controversial decision that has differing opinions in society and it is likely that the conservative and religious vote is lost. The following article will look at the pros that drug legalization brings economically.

According to the National Drug Intelligence Center, this is the government spending on health and crime related to drugs in 2011.

NB: Values in red are calculated in thousands

 

The amount of funds used for drug interdiction as seen at the table above is a considerable amount. These funds are used for the police force, legal enforcement etc. However, this can be used to subsidize other crucial aspects such as health or education. If the government is the seller of the drugs, they can tax the narcotics industry and that tax can act as further subsidies. Government can also significantly lower drug related deaths, as the government would most probably carry out quality controls as drug users normally die due to impurities in the drugs and not the drug itself. Prohibition has led to the stigmatization and marginalization of drug users, there are strict access to needles causing high rates of diseases such as HIV and Hepatitis C which leads to man social costs. Users discount future costs.

By legalizing drugs, it also collapses a very big industry that has been long dominated by gangs. It would arguably, lower drug related inter gang rivalry and killings. Hence improving public policy. A prime example of how prohibition failed leading to an eruption of crime and violence could be seen when the USA decided to prohibit alcohol. If it wasn’t for that, organized crime might not even grow big and the situation with drugs today is pretty much the same

These are some of the arguments brought forth that economically, drug legalization is justifiable and that governments should pursue such a policy in order to emerge victorious in the current “war on drugs” that is seemingly failing. However, this is most likely not going happen due to the social problems and consequences that come with it.