Wednesday, May 8, 2013

Uruguay Considers Legalizing Pot

In Law and Economics today, we will be looking at drugs and crime.  One of the questions we will address is when should a society change the legal rules for a good/service from being either legal/illegal to being illegal/legal?  Economically the answer is a good should be legal is the additional benefits of being legal are greater than or equal to the additional costs of being legal, or when the additional benefits of being illegal are less than the additional costs of being illegal.  Here is an article from The New York Times in which the nation of Uruguay is considering exactly that - for Marijuana.  Notice the types of costs that Uruguay is considering trying to reduce in the article.

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