#ieconomics #economics
There are similarities to prohibition and uncalled for tariffs to subdue dumping. Instead, the solution would revolve around the root cause of the problem. Finding shortcut answers to highly intertwined societal problems will not help. At the same time, similar solutions can't be extrapolated to problems that might sound similar, but in reality not.
Originally shared by Pradheep Shanker
With the passage of the 18th Amendment in 1919, the American alcohol market was driven underground. As prohibition took hold, the murder rate skyrocketed, attacks on police officers spiked, and criminal gangs took over large swaths of urban America. We talk about Chicago today as a city plagued by crime, but Prohibition-era Chicago had it beat hands-down. The market for alcohol didn’t evaporate under Prohibition, it just became more illegal and more violent.
When Prohibition was repealed by the 21st Amendment, the murder rate dropped for more than a decade. Attacks on police officers dropped as well, and the wave of crime receded … until the drug war ramped up.
https://www.cato.org/publications/commentary/who-just-made-case-drug-legalization-drug-warrior-chief-jeff-sessions-thats?utm_content=buffer23ee5&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
There are similarities to prohibition and uncalled for tariffs to subdue dumping. Instead, the solution would revolve around the root cause of the problem. Finding shortcut answers to highly intertwined societal problems will not help. At the same time, similar solutions can't be extrapolated to problems that might sound similar, but in reality not.
Originally shared by Pradheep Shanker
With the passage of the 18th Amendment in 1919, the American alcohol market was driven underground. As prohibition took hold, the murder rate skyrocketed, attacks on police officers spiked, and criminal gangs took over large swaths of urban America. We talk about Chicago today as a city plagued by crime, but Prohibition-era Chicago had it beat hands-down. The market for alcohol didn’t evaporate under Prohibition, it just became more illegal and more violent.
When Prohibition was repealed by the 21st Amendment, the murder rate dropped for more than a decade. Attacks on police officers dropped as well, and the wave of crime receded … until the drug war ramped up.
https://www.cato.org/publications/commentary/who-just-made-case-drug-legalization-drug-warrior-chief-jeff-sessions-thats?utm_content=buffer23ee5&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer