Question

In: Economics

How did Prohibition act as a catalyst for the development of organized crime in the United...

How did Prohibition act as a catalyst for the development of organized crime in the United States? Do you think that the decriminalization/legalization of drugs, prostitution, pornography and the like would reduce the impact of OC in our country today? Explain your answer.

How does the criminality of organized crime differ from that of conventional criminals and terrorists? Give examples in your answers.

Solutions

Expert Solution

Prohibition Act which was passed in the United States in 1920 was a law banning the sale and/or import of alcohol and beverages having alcoholic content. The Act was introduced on both economic and moral grounds. However, it backfired and within 14 years of its implementation, it was repealed. The Prohibition Act acted as a catalyst in for the development of organised crimes in the following ways-

  • A day before the implementation of this act, many bars distributed free alcohol. Many others saw this as an opportunity for money making and charged exhorbitant amount for a single bottle of champagne.
  • Prohibition Act led to an increase in the demand for illegaly obtained alcohol.
  • In order to cater those demands, Mafias and gangs came up. These gangs fought for control over illegal dens of alcohol, the most sought after one being in Chicago.
  • One of the most famous gangs was that of Al Capone. His gang is known to have committed more than 500 murders.

Thus, the Prohibition Act backfired.

Legalizing drugs, prostitution etc can help in tackling the problem of organized crime to some extent. Organized crime will not be wiped one within few days of such an implemnation, it will take some time. When such issues will be legalised, demand or sale for the same will not be considered illegal, hence, disintegrating the criminal sector operating in these industries, gradually. However, simple implementation will not be that much effective until and unless, government keeps a regular check and regulate the sales of such commodities. Government regulation in such industries is important in order to prevent abuse.

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The criminality of organized crime differ from that of conventional criminals and terrorists.

The conventional crimes' motives can be different ranging from revenge to greed/impulse. Eg; a robber looting a bank, pick pocketing, committing muder in process of robbing a man etc.  

Terrorism is driven by political motives. A terrorist group operates in order to achieve a political goal. Eg; Naxalites in India. They feel neglected by the government and want rights over forests, water, minerals, wealth etc.

The organized crime differs from the above mentioned crimes as its motive is solely material benefits or profits. Organized crimes take place when a group wants to obtain profits out of something. Such a crime also entails violence if necessary. Eg: Drug trafficking.

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