America spent a trillion-dollar in the war on drugs, and In 2015, the federal government spent an estimated of $9.2 million every day to incarcerate people that charged with drug-related offenses, that’s more than $3.3 billion annually that was not being spent in the economy.
But, finally this sad censorious is about to change. America is on the path to fully decriminalized the use of marihuana, and states like Oregon decriminalize all drugs in the election day.
Regularization seems to be a better alternative than criminalization. Because when the government regulate a market, they can collect revenue in form of taxes and fine, and then reinvest in the economy.
On November 3, four American states voted to legalize marijuana: New Jersey, Arizona, Montana and South Dakota. Combined with the other states that have done so in recent years. Now, one in three Americans live in a state where access to marijuana is legal. It shows that Americans are souring on the harsh drug policies that have put millions of people in prison, especially black people.
However, under federal law, marijuana is still classified as a “schedule 1” drug, meaning it’s considered to have little medical value and a high risk of abuse, along with drugs like LSD, heroin, ecstasy and psilocybin mushrooms. In states where marijuana has been legalized, that conflict with federal law creates numerous problems for legal marijuana sellers and users. Eg, you cannot smoke and drive cross state. And few national politicians talk about legalizing marijuana throughout the country.
The demand for drugs is inelastic, and if there is a profitable demand, most likely there will be people whiling to full fill it regardless of the law. So, whenever, the government crackdown a cartel or drug lord, the demand and all the profit will just be redirected to another group, and that is in a good scenario, because in bad scenarios there will be a bloodless struggle for power between the cartels which will take many lives, or it will just disintegrate into multiple cartels, which will require more money to crack them down.
In 1920, the US government prohibited the production, importation, transportation, and sale of alcoholic beverages in the whole nation. As result, there was the insurgence of the Italian mafia, and the famous mafia leader, Al Capone. The government learnt nothing from it, and guys like Pablo Escobar and El Chapo rose to power.
PS: We don't incentivize the use of drug, or any substance.
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