1. Rebecca Ehren, Gina Gordon, & Kasey Greer

2. Sex, Booze, & Drugs: An Overview Prostitution Illegal everywhere in U.S. except certain Nevada counties Prohibition Illegal 1920-1933; resulting from temperance movement “The War on Drugs” Cocaine illegal 1914; increasingly strict laws to present

3. The Law Enforcement Approach Target sellers, not buyers Each arrest has the potential to prevent multiple transactions Possible risk raises opportunity costs for potential suppliers, which decreases supply and increases the price for buyers Using law of demand, this increase in price should decrease the quantity demanded

4. Issues with This Approach The high opportunity costs for suppliers encourages them to sell smaller quantities with greater potency to retain the same profit Booze During Prohibition, speakeasies served more potent hard liquor, increasing alcohol poisoning deaths 30x the number of people died from acute alcohol poisoning during Prohibition than do today Binge underage drinking Drugs Suppliers sell more of the purer drugs due to increased value per unit $50,000: 1 pound pure heroin OR 100 pounds of marijuana

5. Regulation by law enforcement encourages suppliers to deal with their problems internally instead of turning to the public forum Sex Prostitutes in Nevada counties are regularly tested for AIDS and other venereal diseases Spread is nearly nonexistent versus Newark, NJ, where approximately 52% of prostitutes have AIDS Booze & Drugs Illegality draws criminals (who have a comparative advantage in illegal activities) Suppliers must resort to violence to uphold their contracts and deal with disputes After Prohibition ended, murder rate in America drops sharply

6. Implications of Chosen Approach Illegal markets are less safe for consumers and society Approach has not succeeded in eliminating the underground markets Prices of cocaine and heroin are at record low levels, encouraging more buyers instead of deterring them Is it time to rethink these policies? Passage of the 21 st Amendment