Will Legalizing Drugs Curb Violence?

Jeffrey A. Miron, a senior lecturer in economics at Harvard, thinks that the United States should legalize drugs (and hints also at gambling and prostitution). Many of you have already heard the big arguments for legalization (especially of Marijuana): the Federal government will save money spent on the drug war, collect new revenues from "sin" taxes imposed on drugs (much like tobacco and alcohol) in order to fund health care, education, etc., and possibly even reduce the incidence of drug use (we pursue that which we cannot have). But, Miron argues that a crucial benefit of legalizing drugs is that it could significantly reduce violent crime. Here is Miron:

Prohibition creates violence because it drives the drug market underground. This means buyers and sellers cannot resolve their disputes with lawsuits, arbitration or advertising, so they resort to violence instead.

Violence was common in the alcohol industry when it was banned during Prohibition, but not before or after.

Violence is the norm in illicit gambling markets but not in legal ones. Violence is routine when prostitution is banned but not when it's permitted. Violence results from policies that create black markets, not from the characteristics of the good or activity in question.

The only way to reduce violence, therefore, is to legalize drugs.

Miron then goes out and points out the other major reasons for legalization, most of which you have heard, including: minimizing corruption, enhancing civil liberties, improving national security and foreign relations (this is an interesting one), improving public health, and improving the economy.

Hat Tip: Gren Mankiw.