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Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

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Addiction & Addictive substanes 5ie450, Economic Jiří Štekláč‘s
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Page 1: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Jiří Štekláč‘s

Page 2: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Structure of this projectIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

Page 3: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Introduction & generally about addictionIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►What kind of addictions do we know?

►Ho

w w

e can u

se it?

►Internallyby own„brain“

►Externallyby own„act“

►How we can judge degree of danger?

►neutraldanger ◄

Page 4: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Introduction & generally about addictionIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►What kind of regulations exist?

► prohibiton

► strict regulation

► legalization

►What kind of addictive substances we talk about?

► prohibited danger addictive substances which are using externally

Page 5: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Lesson from HistoryIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►1909 – Shanghai opium conference

►1912 – International opium convence

►1914 – Harrison‘s narcotic act (USA)

►1925,31 – Geneva

►1936,46,48,53 – next steps

►1961 – „Treaty on drugs“ - UNO

Page 6: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Lesson from HistoryIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Amount of adopted antidrug-law in USA from 1965 to 1998

0

2

4

6

8

10

12

14

16

18

20

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

Source: USA law codex and OSN

Page 7: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Introduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►TWO ALTERNATIVES

►Conservatives- drugs shouldn‘t be legalisedbecause it would rise up amount of

addicts

►Liberals- drugs should be legalisedbecause there would be no more addicts and lower criminality

Area of theories

Page 8: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Area of theoriesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►CONCERVATIVE WAY

►Elliot Currie

- „Higher levels of drug use do go hand in hand with increased crime, especially property crime.“

►Bill Bennett

- „Making drugs legal would just be a way of subsidizing [addicts] habit. They would continue to rob and steal to pay for food, for clothes, for entertainment.“

Page 9: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Area of theoriesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►LIBERAL WAY

►Gary Stanley Becker

„Every american president without exception has lost war with drugs.“

-The problem is in property of demand for drugs (very unelastic)

-expected punishment raises the price, but do not diminish demanded quantity significantly (►drugs are very expensive for everybody - trader, consumer and for government)

SOLUTION: „Legalization of drugs combined with an excise tax on consumption would be a far cheaper and more effective way to reduce drug use.“

Page 10: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Area of theoriesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►LIBERAL WAY

►Milton Friedman

-Effect of „forbidden fruits“

-He wrote an open letter to Bill Bennett:

-„Illegality creates obscene profits that finance the murderous tactics of the drug lords.“

-„Had drugs been decriminalized 17 years ago, "crack" would never have been invented.“

-He highlighted the link between drug and alcohol prohibition

SOLUTION: Drugs in every shop & supermarket

Page 11: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Consequences of the antidrug-lawsIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►What will people do If government prohibit some good???

A) People stop buying prohibited good

B) People will buy it on the black market

Pears

Apples

Left shoe

Right shoe

Remains here or not?

Page 12: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Consequences of the antidrug-lawsIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Adopted law & drug criminality in USA from 1965 to 1998

0

2

4

6

8

10

12

14

16

18

2019

6519

6619

6719

6819

6919

7019

7119

7219

7319

7419

7519

7619

7719

7819

7919

8019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

98

Source: USA law codex and OSN

0

100

200

300

400

500

600

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

Source: Unifrom Crime Reports, 1965-1998, Federal Buerau of Investigation

Amount of law adoptedDrug arrests per

100.000 population

Consequences: Drugs are almost complements to other goods for addicts, If government extend amount of adopted anti-drug law, than the amount of criminals will be extended too.

Page 13: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Consequences of the antidrug-lawsIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Evolution of drug-related deaths in USA from 1979 to 2006 per 100.000 population

Consequences: More Antidrug law cause more intensive development of more dangerous drugs

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

Source: U.S. National Center for Health Statistics, National Vital Statistics Report (NVSR)

Page 14: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Consequences of the antidrug-lawsIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Absolute amount of outlaw drug trades in USA from 1993 to 2007

Consequences: Strictest punishment as death penalty does not influenced rising tendency of drug trading

14000

19000

24000

29000

34000

39000

44000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: Eurostat

Senator Joe Biden (nowadays vicepresident) promoted drug Kingpins on the federal level above the murderers-Introduction of death penalty for drug distribution

Page 15: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Conclusions on addictive substancesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►We can accept two thesis

►Racional thesis about addiction and addictive substances

- every addiction is caused by addictive substance and we can only distinguish between internally and externally way of using

►Empirical thesis about the paradox impact of prohibition of addictive substances

-extension of anti-drug law brings extension of drug criminality and it‘s in contradiction with sence of anti-drug law. Moreover it has very negative impact on social and economic aspects.

Page 16: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Conclusions on addictive substancesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Sence of first thesis

►Government are not able to prohibit all addictive substances (especially internal) and in these cases punishment is possible only „ex post“

-example: government can‘t prohibit using of substance, which is produced by brain and caused addiction to power …

Page 17: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Conclusions on addictive substancesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Sence of first thesis

►Government do not prohibit some external addictive substances

-example: petrol which we can buy everywhere and we can use it as external addictive substance

Why anybody buy expensive drugs instead of petrol?

Maybe because petrol has not effect of forbidden fruit, maybe because addict rather buy „quality drug“ which is produced by drug producer in this „quality“ only because this drug is forbidden!

Page 18: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Conclusions on addictive substancesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Sence of second thesis

►From the empirical evidence:Policy of prohibition of drugs has been failed and extended whole problem

►No evidence that prohibition of drugs brings lower level of addicts

Page 19: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Conclusions on addictive substancesIntroduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

►Why drugs still not legal?

►almost conservative society

►myths about the human act

►lack of courage of politicans to talk about controversial topics

►apathy to results of anti-drug policy

►ethical, religious and moral prejudices

Page 20: Addiction & Addictive substanes 5ie450, Economics of state interventionism Jiří Štekláč‘s.

Addiction & Addictive substanes 5ie450, Economics of state interventionism

Sources:Introduction & generally about

addiction

Lesson from History

Area of theories

Consequences of the antidrug-laws

Conclusions on addictive

substances

Literacy:Milton Friedman: Prohibition and Drugs - From Newsweek, May 1, 1972Milton Friedman: The War We Are Losing - Searching for Alternatives: Drug-Control Policy in the United States, pp. 53-67, Calif.: Hoover Institution Press, 1991.Milton Friedman: An Open Letter To Bill Bennett, The Wall Street Journal, Thursday, September 7, 1989The US Dept. of Justice: Drug Legalization: Myths and Misconceptions

Internet sources:History of the War on Drugs, http://civilliberty.about.comGary Becker: The failure of the War on Drugs, http://www.becker-posner-blog.com/EUROSTAT, http://epp.eurostat.ec.europa.eu/Federal Bureau of Investigate (FBI), http://www.fbi.gov/Timeline: America's War on Drugs, http://www.npr.org


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