Paige: There are many who would look at the economics–how the economics of the drug business is affecting America’s major inner cities, for example.
Friedman: Of course it is, and it is because it’s prohibited. See, if you look at the drug war from a purely economic point of view, the role of the government is to protect the drug cartel. That’s literally true.
Paige: Is it doing a good job of it?
Friedman: Excellent. What do I mean by that? In an ordinary free market–let’s take potatoes, beef, anything you want–there are thousands of importers and exporters. Anybody can go into the business. But it’s very hard for a small person to go into the drug importing business because our interdiction efforts essentially make it enormously costly. So, the only people who can survive in that business are these large Medellin cartel kind of people who have enough money so they can have fleets of airplanes, so they can have sophisticated methods, and so on.
In addition to which, by keeping goods out and by arresting, let’s say, local marijuana growers, the government keeps the price of these products high. What more could a monopolist want? He’s got a government who makes it very hard for all his competitors and who keeps the price of his products high. It’s absolutely heaven.
> **Paige:** There are many who would look at the economics–how the economics of the drug business is affecting America’s major inner cities, for example.
> **Friedman:** Of course it is, and it is because it’s prohibited. See, if you look at the drug war from a purely economic point of view, the role of the government is to protect the drug cartel. That’s literally true.
> **Paige:** Is it doing a good job of it?
> **Friedman:** Excellent. What do I mean by that? In an ordinary free market–let’s take potatoes, beef, anything you want–there are thousands of importers and exporters. Anybody can go into the business. But it’s very hard for a small person to go into the drug importing business because our interdiction efforts essentially make it enormously costly. So, the only people who can survive in that business are these large Medellin cartel kind of people who have enough money so they can have fleets of airplanes, so they can have sophisticated methods, and so on.
> In addition to which, by keeping goods out and by arresting, let’s say, local marijuana growers, the government keeps the price of these products high. What more could a monopolist want? He’s got a government who makes it very hard for all his competitors and who keeps the price of his products high. It’s absolutely heaven.
This subverse is primarily intended to talk about Libertarian philosophy, values, and ideas. We are not affiliated with the Libertarian Party in any way. All viewpoints and discussion is welcome, as long as it's cordial.
1 comments