Monday, April 11, 2016

Why Drug Cartels want Marijuana illegal

Whether you are pro-legalization or anti-legalization there is one surprising group of people who are very anti-legalization, drug cartels. Just like during the 1920's prohibition of alcohol lead to the rise of criminal activity from mobster who profited greatly from the illegality of alcohol, so too are El Chapo and the likes of him from the illegality of marijuana. 
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Although the goal of making these substances illegal is to lower the crime associated with the drug, the opposite always occurs, this is because of simple economics. Making drugs illegal does not change the demand, however it does make supplying the drug much harder. This leads to a market inefficiency where producers won't be able to have competition, therefore causing a monopoly which is controlled by a criminal organizations. Since these criminal organization are essentially a monopoly, they are able to charge high prices for marijuana, and making them some of the most profitable industries. However, if these drugs were legal, this would make the criminal organizations face competition from multiple organizations therefore eliminating their monopoly and ending their high profits. 

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