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Politics : American Presidential Politics and foreign affairs
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To: Geoff Altman who wrote (2000)10/26/2005 2:31:08 PM
From: Peter Dierks  Read Replies (1) of 71588
 
The inelasticity Becker is describing is the short term inelasticity. He did not seem to cover the long term effects of higher prices or lower prices. The lower the price, the more (price) accessible drugs are to younger people. At $10 for a high, there is lots of long term demand. At $100 for a high, the demand is much lower in the long run.

In describing short term inelasticity, Becker fails to discuss physical or emotional addiction. People who are already hooked will do anything to get their next high. Also there is the glamour effect. If kids see druggies as cool people with cool cars, hair and cloths, it is going to be more glamorous. If druggies are strung out car less criminal bums it will decrease the likelihood of individual choices. Collectively individual choices affect demand.

It is unlikely if there are any excise taxes currently in effect as high as alcohol. There is a large potential tax revenue stream from excise taxes approximating the interdiction avoidance costs.

It still remains unanswered what percentage of people convicted and jail for "non-violent" drug crimes would end up in jail for other crimes if drugs were legalized. I for one do not discount that criminals flock to the easy money. Certainly there are some people who would not otherwise be involved in criminal activity if not for their proclivity for drugs, and their illegality.
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