How are the social aspects of the war on drugs affecting the economy and why are they failing?

This project analyzes the laws and policies that shape the war on drugs from an economic point of view. I identified the current policies targeting the demand-side and supply-side efforts in the drug war and conducted a cost-benefit analysis. America’s supply-sided efforts have dramatically increased drug arrests, and consequently the prison population. Both the American economy and society bear the costs of these measures while private prisons profit immensely. We spend billions of dollars on supply reduction with very little success. Studies show that American states that have legalized marijuana avoid these costs, and show promise with job creation, tax revenue, economic transfers, and product safety. On a countrywide level, I present a case study of Portugal, which solved its drug problem by decriminalizing all drugs, leading to a decline in abuse. American policymakers can learn from the Portuguese experience.