Thursday, May 19, 2011

Too much Prohibition Leads to Corruption

Watch this Youtube: Drug Lords Celebrate the Drug War at the UN!


When government prohibits, the transaction costs in doing such business increases, as a result, prices of the prohibitted product skyrocket which creates big profits in its production and sales. The alternative solution is managing the demand side instead of the supply side. This hypothesis is applicable to all kinds of undesirable products and services.

This is what my thesis in college was saying. The title of my college thesis in 1997 was "The Market Structure of a Prohibitted Drug in the Philippines- the Case of Methamphetamine Hydrochloride" for BS Economics at the University of the Philippines at Los Banos.

When I wrote it, some 14 years back then, they said it was the most wierd theory they have ever heard. But look now. I didn't expect the ideology would tremendously grow GLOBALLY.


Prohibition of disagreeing speeches would lead to insurgency. Prohibiting right to life would lead to terrorism. Prohibiting hope in betting would lead to illegal gambling. Any kind of prohibition would cultivate a CULTURE OF CORRUPTION.

If you notice, the countries with too much prohibitive laws become the top corrupt countries in the rank. This explains the Culture of Corruption in the Philippines. Did you know that UK is a very old civilization, yet the number of their laws is only 10% the volume of laws compared to Philippines.


So if I become Senator, I would probably be different that the other Senators. While the others make new laws, I will spend more time revisiting the previously approved laws and I will check out if it is implemented or not. If the law is not implemented, then CORRUPTION EXISTS.