Sunday, October 05, 2008

Kudos to Calderon

A beginning to the end of Mexico drug violence?

Anyone that reads the papers knows that illegal drug-related violence is increasing in Mexico. Prohibition (the "drug war") just reduces the supply of drugs as puts some competitors in jail. This creates mononopoly profits for something which should be a commodity (eg no super-normal profits in a free-market) because there is no secret patent or technology or special entrepreneurial talent involved in the production and distribution. Those who are left in the business after their competitors are picked-off by the drug warriors, make more profit than they should. Even worse, the most violent and corrupt rise to the top in such a situation. Plus, it makes people overseas dislike the USA for our interdiction efforts into their agriculture-based livelihood.

It is good to see that President Calderon in Mexico realizes the 'dead-end' of the drug war and is taking steps to de-criminalize some of the activity.