New answers tagged

5

Decriminalisation does reduce the cost of drugs, if we factor in the substantial added consumer costs of accessing a black market: Adulteration. A black market buyer might pay for n units of a substance, but only receive .25n units adulterated with .75n units of filler. Contamination. A black market buyer might pay for n units of a substance, but only ...


1

For decriminalization to take effect on price, it would require decriminalization of the whole supply chain. For example, as long as production of opiates and cocaine is illegal in the countries of origin, or somewhere on the shipment route, it is clear that this will reduce supply, and raise production and shipment costs. Also, any US producer of marijuana ...


15

It is conventional wisdom that the criminalisation of the supply of recreational psychoactive drugs causes an increase in the cost to supply and therefore to the user... However other studies have indicate this is not the case, according to one frequently referenced study from 2016 (though relating to harder drugs) The Portuguese study from IJDP that you ...


5

In the case of legal marijuana a big problem is it's illegal for banks to work with you. This was from back when the Bush administration wasn't happy about California legalizing medical weed (in 1996). Pot was still illegal federally, which they used to put the squeeze in the businesses. A few years after Colorado had legal recreational weed (2012) local ...


13

In addition to what has already been stated, in some areas decriminalization has coincided with lower prices and higher quality. For example, I live in Arizona where recreational cannabis was legalized last year at the state level. Medical cannabis had been available for several years. According to my contacts who have experience with this, 10 years ago ...


8

The whole story is quite complex, but I can point out a couple of factors. If you read Freakonomics, in chapter 3 it will explain that against usual expectations often drug dealers earn very little from their trade. In an illegal context its easier to exploit people and those in the lower ranks of the distribution chain can earn less than the minimum wage. ...


23

Economics is hard The number of factors that can impact supply and demand, and therefore pricing, is essentially incalculable and indeterminable. Certainly if anyone can determine and compute them all, they should become extraordinarily wealthy and powerful as a result, as the market would behave in a wholly deterministic and predictable way to them; their ...


Top 50 recent answers are included