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Social Problems and the Free Market: a Brief Look at Illegal Drugs and Its Market

In: Business and Management

Submitted By nsj94
Words 2670
Pages 11
Social Problems and the Free Market: A Brief Look at Illegal Drugs and Its Market
Nicola Jones Baker
Kaplan University
Professor T. Ayanou, PhD
February 17, 2015

The present research report seeks to show the relationship between a “free market” economy and the acquisition and dispensing of illegal drugs. This report will begin with a general look at what constitutes a “free market” economy and how its aspects of supply and demand are the very cornerstones of its existence. After discussing the concepts of supply and demand, the author will then address how the tenants of supply and demand relate to individual freedoms and individual competitions. Following this section of the present report, the author will seek to discuss illegal drug markets. In the final and closing section of this research report, the author will argue that the social problems created by illegal drug addiction could be managed in a “free market” economy that views addiction as a treatable disease rather than a criminal offense.
The fundamental underpinning of a free market system is the competition it generates among those who are vying for the consumers’ dollars. The goal of the free market is for person (A) to provide a good or service that is wanted by customer (B). Person (A) and customer (B) then negotiate a price for that particular good or service. If person (A)’s price is too high or the good or service is inadequate, customer (B) then has the right and freedom to go to person (D) in order to maximize his or her return. While this may be oversimplified, it does capture parts of the culture of a free market system. Adam Smith wrote in late 1700 produced a theory that was termed the “invisible hand theory.” The premise of the theory was based upon the notion that “each of us, acting in our own self-interests, generates a demand for goods and services that…...

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