Social Consequences of Drug Legalization

Abstract

Even if prohibition has overall bad consequences, that is not in itself a reason to reject it. The utilitarian/cost–benefit approach must be comparative. It is possible that legalization might have even worse overall consequences than prohibition. Many critics of legalization claim that it would lead to increases in use, overdoses, traffic fatalities, and crime. I examine these claims, using data from the repeal of Prohibition and recent marijuana legalization in some states as evidence. I contrast that with benefits of legalization, such as increased tax revenues, reduced crime, and safer drugs. I then examine what I call “the legalizer’s dilemma.” If legalized drugs are cheaper than black-market drugs, then legalization might significantly increase use (leading to increased overdoses and other problems). On the other hand, if we tax recreational drugs to drive up the prices, then people will continue to purchase drugs on the black market. Although it is a legitimate concern, I do not think the problem is unsolvable. Most people would prefer to purchase safe, high-quality drugs legally, even if they are more expensive than street drugs. And increased use is not necessarily a problem if safer drugs lead to fewer overdoses.