Drugs and International Economy

#1

Ok, this thread may be a takeoff of the Legalize Weed one but I wanted to make a thread /:D" style="vertical-align:middle" emoid=":D" border="0" alt=":D" />

Lessay they legalize cocaine. The prices would drop significantly right? So although people would have easier, cheaper access to it, would the revenue generated by legalizing it be more or less than it is right now?

Furthermore, how would this change affect countries like Peru, who rely so heavily on the cash made from exporting this drug?

#2

I'm not sure a legalization of Coca would cause a price drop at all...I think things would become more cut throat than ever...There will ALWAYS be a discrepancy over who can, and who can't sell it...You can make it so that it is less profitable to be a drug dealer, but there will always be a matter of corruption associated with such a dangerous drug...If anything, it will simply shift the focus to more unknown, experimental, and or more dangerous drugs...

#3

I agree with A, it would make the industry much more cut throat than. Using simple economics legalising drugs like cocaine would mean increase in supply in the market as it would be easier for anyone to get into the market and buy and sell drugs and the increase in demand too since it would be so readily available. This will lead to a price hike. But as A mentioned it would also increase the costs and make the market more competitive. The revenue would be greater, yes, but the profits made in the market would drop significantly.

Although it can be said that the drugs scene is one of the most lucrative black market operations that could take place. For countries like Peru it would mean a huge increase in GDP and would undoubtably increase standard of living and would make the country much more competitive in the international market.

There could be a whole lot of postive outflow to legalise the drug industry. Increase in GDP, increase in standards of living, increase in employment, increase in the exchange rate for the countrys currency etc etc. Also there would be less leakages from an economy.

Simply put, economically, to legalise drugs like cocaine would mean huge benefits for countries who have huge black markets on trading these illict drugs.

#4

How can you say the price wouldnt go down if you could walk into Fred Meyer and buy cocaine? Of course it would come down if it was legalized..So could the countries that produce the most sell enough to still have functioning economies?

#5

QUOTE(Aemeth)How can you say the price wouldnt go down if you could walk into Fred Meyer and buy cocaine? Of course it would come down if it was legalized..

This is how I will answer your question, and you tell me if it makes sense...Do the prices of H2's go down when Kia comes out with a new sedan..? Same economic principle...

#6

Eh, a few too many variables for it to relate well for me...those are different models..I can see weed staying the same price if just coke was legalized, but..not coke.....For example, if bread became illegal, would not the price go up because it is rarer and harder to get? Why wouldn't this trend be true in the reverse as well?

#7

Think of it like this...Say you were looking to score some coke...If you're a first time user, then sure, yeah you might go to the legal spot and get it...But...Why on God's green would Lindsay Lohan and other coke chicks stop going to their normal dealers..? If you're buying coke, and not crack, you are obviously not hurting for $...

To me, it is the same as you deciding to but name brand Nike Shox instead of Voit from Payless...And besides that, the plant itself won't just grow healthy in any old field...Think the U.S. gov't can grow that creme faster than the Cartel..? Establish more connects..? You are catering to a certain market anytime you enter the fiscal realm...If you're selling the new Jordans, and them joints $160.00 bucks, you don't sell the for $100 cause Dewaye Wade's shoe just came out and it's $105...

If anything, the legalization of coke would mean the black market dealers would develop a much more superior product...And probably raise the prices...

#8

sales from the legalization of cocaine would not affect the market that bad.

the ensuing abuse of cocaine would lead to a state of emergency though.

then they would cut it, regulate it, and people would still go to their dealers.

and peru would be worth a buck-fiddy, after we could legally grow it.

#9

True...I didnt even realize that WE could then grow it.../sad.gif" style="vertical-align:middle" emoid=":(" border="0" alt="sad.gif" />

So then back to the original question...what would happen to those countries? I mean in more depth...How big of a factor does this play in the US considerations to legalize some drugs?

#10

As I said, I don't that will change, they will still produce the superior product...