Question

(1) The author argues that one benefit of legalizing drugs is that the drugs can be taxed. The author estimates (and I think this is the final number he came up with, the exact number is not relevant to the question) that the government could generate $10 billion in tax revenues from taxing drugs. The author argues that this is a net benefit from legalizing drugs. Don't focus on anything else, just focus on the tax revenues. Do taxes on drugs create a net benefit to society? Explain your reasoning and tell a story. (2) The author argues that legalizing drugs will save $28 billion in enforcement costs. He includes the following in enforcement costs: government expenditures on the arrest, prosecution, and the costs of running the jails. What cost of enforcement has the author overlooked? (Remember the hint above.) (3) The author argues legalizing drugs will result in less theft and that this is a benefit from legalizing drugs. Does a theft of goods create a net cost to society? Explain. (4) The author argues that one potential cost of legalizing drugs is people might consume more drugs. Just focus on the consumption of the drugs themselves. Does an increase in consumption due to a price decrease create a cost to society? (Think first of some good other than drugs (e.g., if the price of bottled water goes down and people consume more is that a cost to society) and then ask whether your answer is different when it comes to illegal drugs. If there is a difference, why? And how does this connect to the discussion as to whether people are the best judge of the benefits and costs of their actions? Explain

Answer 1

1} TAX ON DRUGS

When we analyze only from the side of revenue, it is clear that when the drugs became legalized and easily available to all, along with a tax imposed on it, the government can earn a huge scale profit. And also when it is legalized the number of people who use certain types of drugs will also tremendously increase with in a short spell. But on the other hand the government also have the responsibility to take care the people's health and to control the over usage of these commodities.

2} SAVE ENFORCEMENT COST

In every year the government has to spend a huge amount of  money over the enforcement cases over the drugs. And when it is legalized the government can save this money and profit more. Because the cost for running the systems including the jails are too much expensive. So this money can be profited with such action.

3} The author also argues that this action will result in the reduction of thefts, the complete assessment of the estimated value is much more and beyond our expectation. So if there is an elimination in such a loss of the money, then no doubt it is beneficial. And it is one of the most important benefit that is acquired as a result of the legalization of the drugs as we discussed above.

4} When the price of a commodity decreases then it will result in the increase in use of such commodity. Like that when the price of drugs decreases it will increase the usage. But it will increase the cost's of people in a manner in which it will create some more revenue to the authority and on the other hand the social responsibility will tend to rise in high manner.