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The Union: The Business Behind Getting High - Assignment Example

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The Union: The Business Behind Getting High

2) The documentary stated that marihuana was like “a gift of revenue to organized crime” since prohibition has not reduced the demand for this multibillion dollar crop. Organized crime has been supplying most of the product consumed in the U.S., providing them with a profit driven virtual monopoly where billions of tax free dollars are earned by the organizations who supply the market.
3) The WAR on Drugs has only benefited the government, special business interests, and organized crime. In 2005 there were 745,546 arrests for marihuana violations. The DEA agency is one of the main beneficiaries since around 80% of their operating budget is invested in marihuana prohibition enforcement. Without marihuana prohibition most of the DEA would be without jobs.
4) The price elasticity of illegal marihuana is approximately -.4. With the legalization I would say that the demand curve would be look fairly similar if prices stayed about the same because of price regulation. If prices stay unregulated the market will drive prices down, thus the demand would probably become more elastic over time. The demand curve would eventually become close to perfectly elastic since production costs could drop to a few dollars per ounce. The price elasticity the graph could become almost perfectly flat or elastic.
5) Individuals will lose the right to any federal financial aid for college education. A criminal record can prohibit them from finding any government or private employment options. It will cause a stigma of discrimination towards the individual in our society
6) If you had 10,000,000 your best legal investment bet according to the documentary is in pharmaceutical companies. Since the patent process protects the companies from competitors for 20 years, they can charge whatever they desire for their products. For 2005 the pharmaceutical industries revenue increased by 5.4%, with over 251 billion in ...Show more


Since gold is a highly sought after regulated commodity its prices are kept artificially high so there is little or no profit incentive in reselling raw gold. On the other hand one…
Author : boehmford
The Union: The Business Behind Getting High
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