Black markets arise when governments set restrictions on what goods and services individuals may purchase. Provision of these goods and services are taken over by persons willing to violate the law. Because of the artificial scarcity created by government policy, these parties face much less competition than they would in a free market and can therefore charge higher prices to consumers. Due to the illegal nature of operations in the black market, producers and distributors may take aggressive measures to defend their work against intrusion.
The Cost of the War on Drugs
Steve Horwitz - Regulation and Intervention
MARCH 27, 2009 by SHELDON RICHMAN
Violence among Mexico's drug cartels and government has spilled over the U.S. border and beyond. Does anyone still think the "war on drugs" is a good idea?
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