Feeling Alright
The primary economic consequence of establishing a government policy of Prohibition is to drive the prohibited market underground. The primary political and social consequence is the creation of a criminal element in the market, which then spawns corruption of politicians. Note that the market does not disappear. There are numerous secondary and tertiary consequences of Prohibition. (I am using the term “Prohibition” to refer to any government policy of banning market activity.) We can look to the notorious example of alcohol Prohibition in the United States from 1920 to 1933 for instructive guidance, but the failure of attempts at Prohibition … Continue reading Feeling Alright