Despite the government’s best efforts, cocaine prices have plummeted over the past 30 years. All our best drug interdiction and anti-narcotic regulation work hasn’t put much of a dent in production or consumption. The laws of economics and technology have teamed up to ensure that technical advances, economies of scale, and improved supply chains deliver product to consumers faster and cheaper.Magic Blue Smoke blog has a solution that seems to have worked for higher education and housing, have the government subsidize consumption.
What have been the results of these government efforts to make housing and higher education “more affordable”? The biggest real estate bubble in human history and college tuitions that sky-rocket perfectly in tandem with increases in government subsidized educational loans.Irrefutable logic.
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Cocaine, like higher education, would become an unsustainably expensive habit. Just like college, you might manage to ride the white rails every night for a few years, but eventually you’d have to sober up, get a job, and finally pay off the loans from those years of partying.
Great quote from the Slate article on this issue:
It should be noted that enforcement of drug laws has added substantially to the cost of street drugs, but those increases haven’t been enough to outpace efficiency gains in the industry.