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War On Drugs

Decent Essays

Introduction: The United States has battled with recreational and medicinal drug use since the establishment of the country. In 1890, the United States placed a tax on morphine and opium. This was a prelude to the War on Drugs. However, in 1970, Richard Nixon made his first actions toward resolving the Wear on Drugs through the Controlled Substances Act. In 1971 President Nixon declared the war on drugs public enemy number one. From there, the policies put in place due to the War on Drugs worked toward filtering the distribution of drugs, but only to some extent. Nixon’s cabinet did not understand the depth and severity the War of Drugs had on the economy. The less drugs in the market, the higher the market price will be. Simultaneously, cartels …show more content…

The intention of this policy is to limit the amount of drugs in the market and make it more challenging for the cartels and dealers to make a sale. However, while the supply of drugs in the market has decreased, the market price has increased; Addicts are susceptible to a downward spiral due to the inelasticity of reliance. In regards to supply and demand, this would cause the supply to shift down and the price to increase. While reliance on supply has been inelastic, the long run of drugs proves to be malleable and beneficial for the cartels. Consequences such as drug violence is rising as the prices of cocaine and heroin have been falling for several decades. For example, “one study found that between 1981 and 1995, the price of cocaine fell by a factor of 5 while the number of emergency room admissions mentioning cocaine increased by a factor of 15. (This interesting graph from the study shows the pattern holding for heroin as well as cocaine)” (Dolan). …show more content…

As we learned in class, the long run elastic demand aids in the desire of addicts. The long run elastic run is a pattern that, “accords with the intuition that an addicted user will not forgo the drug even if the price goes up (inelastic short-run demand), but that cheap drugs might, over time, attract new users” (elastic long-run demand) (Dolan). Perhaps, though, with rational thinking and an economic outlook, cartels have began weaving their way into technology to increase their capital and shift their supply curve further to the right. “The price decrease suggests that some of the cartels' revenue has gone to investments in capital and technology, and that those investments, over time, have shifted the supply curve downward, more than offsetting the efforts of the drug wars to push it upward” (Dolan). Although the actions cartels take do not merit what is right, they are executed with the same expertise and efficiency as the competition-the readiness to do bad things is more of an catalyst toward to promotion and

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