April 20 is the counter-culture “holiday” on which lots and lots of people come together to advocate marijuana legalization (or just get high). Should drugs—especially marijuana—be legal? The answer is “yes.” Immediately. Without hesitation. Do not pass Go. Do not collect $200 seized in a civil asset forfeiture. The war on drugs has been a dismal failure. It’s high time to end prohibition. Even if you aren’t willing to go whole-hog and legalize all drugs, at the very least we should legalize marijuana.

For the sake of the argument, let’s go ahead and assume that everything you’ve heard about the dangers of drugs is completely true. That probably means that using drugs is a terrible idea. It doesn’t mean, however, that the drug war is a good idea.

Prohibition is a textbook example of a policy with negative unintended consequences. Literally: it’s an example in the textbook I use in my introductory economics classes (Cowen and Tabarrok, Modern Principles of Economics if you’re curious) and in the most popular introductory economics textbook in the world (by N. Gregory Mankiw).The demand curve for drugs is extremely inelastic, meaning that people don’t change their drug consumption very much in response to changes in prices. Therefore, vigorous enforcement means higher prices and higher revenues for drug dealers. In fact, I’ll defer to Cowen and Tabarrok—page 60 of the first edition, if you’re still curious—for a discussion of the basic economic logic:

The more effective prohibition is at raising costs, the greater are drug industry revenues. So, more effective prohibition means that drug sellers have more money to buy guns, pay bribes, fund the dealers, and even research and develop new technologies in drug delivery (like crack cocaine). It’s hard to beat an enemy that gets stronger the more you strike against him or her.

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