Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Investing

Are Government Prohibitions Effective?

by May 20, 2024
May 20, 2024
Are Government Prohibitions Effective?

Jeffrey Miron and Jacob Winter

Standard economic reasoning suggests that prohibitions reduce the production and consumption of the outlawed good or activity. Penalties for possession shrink demand, while penalties for production and distribution shrink supply. Thus, the quantity bought and sold should fall.

Existing evidence, however, suggests that such policies have a modest impact, whether the prohibition is of alcohol, drugs, gambling, immigration, or insider trading, to name a few. 

The explanation is presumably that laws do little to change behavior unless enforcement substantially raises the costs of engaging in the outlawed behavior, and governments have generally been ineffective in this regard.

A recent analysis of border walls (Cato Research Brief no. 381) illustrates:

[O]ur study uses United Nations High Commissioner for Refugees data on global refugee flows from 1970 to 2015 and data on all border walls built from 1945 to 2015. Our results corroborate the scholarly skepticism over the effectiveness of walls: border fences do not appear to have the effect that leaders frequently use to justify their expensive construction. Our research finds no evidence that border fences affected refugee flows between 1970 and 2015.

Even if prohibitions do reduce the targeted good or activity, they are often ill‐​advised, partly because they have adverse, unintended consequences, and partly because they lack sensible objectives in the first place.

When prohibitions fail to suppress the thing they prohibit, they make no sense whatsoever. One alternative — “sin” taxation — has its own potential negatives, but in moderation is far more likely to move outcomes in desired directions, with fewer adverse effects.

0
FacebookTwitterGoogle +Pinterest
previous post
UK Business Flight Demand Drops by Nearly a Third Since 2019
next post
Uber Drivers Offered Significant Discounts on Kia Electric Cars

You may also like

Stossel TV Debunks Six Myths About Globalization

April 2, 2024

Fischer v. US: Court Clarifies Ban on Obstructing...

June 28, 2024

Trump Orders Review of Federal Second Amendment Policies

February 10, 2025

Just in Time for Valentine’s Day, Hegseth Takes...

February 12, 2025

Congress Must Heed Lessons of Previous Deficit Reductions

October 5, 2023

Today at 8:00 AM ET: Discussing the Federal...

March 11, 2025

Friday Feature: Springbrook Christian Academy

January 17, 2025

Perttu v. Richards Brief: Defending the Right to...

January 22, 2025

Social Media “Blockings” Send Two Cases to the...

July 3, 2023

Idaho Leads the Nation Toward Expanding Pharmacists’ Scope...

August 14, 2023

Stossel TV Debunks Six Myths About Globalization

April 2, 2024

Fischer v. US: Court Clarifies Ban on Obstructing...

June 28, 2024

Trump Orders Review of Federal Second Amendment Policies

February 10, 2025

Just in Time for Valentine’s Day, Hegseth Takes...

February 12, 2025

Congress Must Heed Lessons of Previous Deficit Reductions

October 5, 2023

Today at 8:00 AM ET: Discussing the Federal...

March 11, 2025

Friday Feature: Springbrook Christian Academy

January 17, 2025

Perttu v. Richards Brief: Defending the Right to...

January 22, 2025

Social Media “Blockings” Send Two Cases to the...

July 3, 2023

Idaho Leads the Nation Toward Expanding Pharmacists’ Scope...

August 14, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • DOJ brass vowed full transparency on Epstein before turning up empty-handed

      July 13, 2025
    • MAGA world erupts over Trump’s defense of Bondi amid Epstein files fallout

      July 13, 2025
    • Is It Time to Lower Our Market Expectations?

      July 13, 2025
    • Why Every Team Should Invest in a Wireless Intercom Headset

      July 13, 2025
    • More small firms expect to shrink than grow, warns FSB

      July 13, 2025
    • UK government launches £2.5bn DRIVE35 strategy to supercharge zero-emission auto manufacturing securing thousands of British jobs

      July 13, 2025

    Categories

    • Business (8,460)
    • Investing (2,118)
    • Politics (16,020)
    • Stocks (3,206)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved