Does Drug Interdiction Increase or Decrease Drug-Related Crime

A persistent problem facing our society is the use of illegal drugs such as heroin cocaine, ecstasy and crack. Drug use has several adverse effects. One is that drug dependence can ruin the lives of drug users and their families. Another is that drug addicts often turn to robbery and other violent crimes to obtain the money needed to support their habit. To discourage the use of illegal drugs the U,S, government devotes billions of dollars each year to reduce the flow of drug into the country. Let’s use the tools of supply and demand to examine this policy of drug interdiction.

Suppose the government increase the number of federal agents devoted to the war o drugs. What happens in the market for illegal drugs? As is usual, we answer this question in three steps. First we consider whether the supply or demand curve shifts. Second we consider the direction of the shift. Third we see how the shift affects the equilibrium price and quantity.

Although the purpose of drug interdiction is to reduce drug use its direct impact is on the sellers of drugs rather than the buyers. When the government stops some drugs from entering the country and arrests more smugglers, it raises the cost of selling drugs and therefore reduces the quantity of drugs supplied at any given price. The demand for drugs the amount buyers want at any given price is not changed. Interdicction shifts the supply curvo to the left from to the demand curve the same. The equilibrium price of drugs rises from P1 to P2 na the equilibrium quantity falls from Q1 to Q2. The fall in the equilibrium quantity shows that drug interdiction does reduce drug use.

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