In: Economics
Proponents of prohibition on drug claim that such policies reduces the drug related disease and overdose, decreases the drug related crime, and are an effective approach of dismantling and disrupting organized criminal enterprises. But in actual the prohibition is not only ineffective, however counterproductive, at achieving the targets of policymakers both abroad as well as domestically. In the drug market prohibition acts as a “tax” on sellers; and the tax increases the price for sellers. It pushes sellers out of market; and it limits the supply of drugs and increases the prices. Also the drug prohibition pushes the drug market into underground black markets.
When the drugs are illegal, its users cannot use formal legalised channels to seek legitimate protection or for resolving the disputes for their business transactions. In the illicit drug trade neither sellers nor buyers will turn to the police or other mechanisms for legal dispute-resolution. Instead, they must solve their own concerns, which generally indicate that they use violence to solve concerns as opposed to more peaceful approach of legal dispute resolution. Thus the criminality will be associated to the drug market as these skills are necessary for success in long-term.
As per policy we have to answer first question