The Economic Benefits of Legalized Drugs

Alcohol’s effects can be very detrimental to people’s health and for that reason it was outlawed in 1919. This prohibition was largely unsuccessful because alcohol was still readily available and sparked large amounts of unlawful activity (Ernest van den Haag 1). The ABA journal states, “Alcohol consumption increased substantially during Prohibition” (Moss 16). Ernest van den Haag states, “In a democracy one can regulate, but one cannot effectively prohibit, sumptuary activities desired by a substantial segment of the population. Unenforceable attempts to prohibit certain substances will cause more harm than good” (1).

This statement holds true for the prohibition of drugs going on today in the United States. The ABA Journal argues how the use of drugs has not decreased since drug laws were put into place in 1915. The amount of people using narcotics has stayed the same and the use of cocaine has increased over 4000 percent since the laws were enstated (Moss 16). Not only is drug use still going on, this illegal use continues to fuel crime.“Ostrowski notes, ‘The President’s Commission on Organized Crime estimates a total of seventy drug market murders yearly in Miami alone. Based on that figure and FBI data, a reasonable nationwide estimate would be at least 750 murders a year’” (qtd. in Cussen and Block 529).

Dr. Michael Babula states, “The United States spends approximately $600 per second on the war on drugs. This year, the United States will arrest 1.6 million members of its population for drug law enforcement violations” (Babula). From an economic standpoint, incredible amounts of money are spent in keeping this prohibition alive. The average cost to keep a person in prison for a year is $22,650 as of 2001 according to the National Institute for Corrections (Freedman). According to the Bureau for Justice Statistics, 21% of state prisoners and 55% of federal prisoners are in jail for drug related crime. These statistics add up to more than half a million people being incarcerated a year due to these crimes (“Feature: Drug War Prison Count”). Keeping these people in jail is only spending the money of taxpayers that could be put to better use elsewhere.

A way to generate revenue and help the economy of the United States would be to impose a federal tax on the sale of legalized drugs. An example of this seen presently is the tax on cigarettes. The median state tax on cigarettes is $.80 per pack while New Jersey has the highest rate at $2.575 per pack (“State Excise Tax Rates”). The defecit created by money spent in the war on drugs and keeping inmates in jail on drug related charges could be erased by the ending of prohibition. Money previously used to try to control the drug trade along with money generated by the imposed tax could be used by the government and give a strong boost to the US economy. The drug trade, presently underground and unrecognized by the US economy, is an incredibly lucrative market that creates millions of dollars of profit. Because drug trade is presently illegal, it is not considered as a factor when determining the state of the US economy. Legalizing drugs and the drug trade will force the money generated to be recognized as part of the economy. All of these factors will make the economy stronger and more attractive to investors.

Some of prohibition’s consequences include, “diversion of law-enforcement resources from terrorism and other violent crimes, overcrowding of courts and prisons with violent criminals released to make room for drug offenders, corruption of law enforcement officers and agencies, criminalization of consensual behavior and personal responsibility, and a frightening escalation of crime and violence” (Perlman 2004). Dr. Michael Babula, a candidate in the upcoming election for congress in Maryland’s fourth district, supports the legalization of drugs and end of this prohibition. In Maryland, drug related crime is highly prevalent. There were 140 murders in Prince George’s County, many due to drug related crime. Dr. Babula’s opponents, Donna Edwards and Albert Wynn, fail to mention this important and highly prevalent issue on their websites. This issue is very important to the United States security and future. It needs to be given the proper attention in order to be resolved.

The ending of this prohibition will help to lower the crime rate in this area and better the economy. Although this is not the forefront of many candidates campaigns, Dr. Michael Babula considers this a very pressing issue that deserves adequate attention. Not only is the prohibition on drugs a social inhibitor, it is also a strain on the economy. Ultimately the ending of this prohibition provides many benefits to our economy and society. It takes drugs out of the hands of organized crime and creates new jobs for the unemployed. The production of drugs is then regulated to make a safe product which companies would provide. Income taxes would then be paid while the government taxed the product, providing additional revenue. This money is then put in the hands of the government where they can use it for other pressing needs. Ultimately, the benefits to the US government would be twofold, it would no longer be spending money on the endless war on drugs but collecting it due to the money generated by the taxes. The economic benefits to the legalization of drugs are endless.





Works Cited

Babula, Michael. "Issues." Dr. Michael Babula for Congress 2008. Michael Babula Congressional Committee. 21 Jan. 2008 .

Cussen, Meaghan, and Walter Block. "Legalize Drugs Now!" American Journal of Economics and Sociology 59 (2000): 525-536. 21 Jan. 2008.

"Feature: Drug War Prisoner Count Over Half a Million, US Prison Population At All-Time High." Drug War Cronicle. 28 Oct. 2005. The Drug Reform Coordination Network. 21 Jan. 2008 http://stopthedrugwar.org/chronicle-old/409/toohigh.shtml.

Freedman, Daniel. "National Review Online." Making Crime Pay. 2007. National Review Online. 21 Jan. 2008 http://article.nationalreview.com/?q=YjkxMjMxZjU2NzdhNGQ4N2M5ZDM1NzdhNzYxZmZiZjU=)..

Moss, Debra C. "Panel Wants Drugs Legal." ABA Journal (1988): 16. 21 Jan. 2008.
Perlman, Alan M. "Drug Prohibition's Awful Consequences." The Wall Street Journal 5 Mar. 2004, Eastern ed., sec. A15. Loyola Notre Dame Library, Baltimore. 20 Jan. 2008.

"State Excise Tax Rates on Cigarettes." Federation of Tax Administrators. 1 Jan. 2008. 21 Jan. 2008 http://www.taxadmin.org/.

Van Den Haag, Ernest. "Legalize Those Drugs We Can't Control." The Wall Street Journal 8 Aug. 1985, Eastern ed.: 1. Loyola Notre Dame Library, Baltimore. 20 Jan. 2008.