I have a question which is related to the one Nesher did. There are two markets which are forbidden in almost all countries around the world due to moral reasons (most of times), even though we know that markets allow economic agents to reach optimal results in resource allocation.
So, if we know about the advantages provided by markets, why do you think we should (or should not) legalize markets for:
My answers are:
i) We should depenalize the drugs market (all drugs) because:
a. That way, it would be a much safer economic activity for both, consumers and suppliers.
b. Mexican government would save a good fraction of the money currently used for combating the drug cartels, which could be used in prevention campaigns or to create a strong regulating system in this market.
c. The negative externalities imposed by the consumers on the public healthcare system could be internalized with a tax.
d. The price and quantity of drugs produced and consumed would reach an optimal allocation, benefiting society as a whole.
ii) On the other hand, organs market should not be legalized because that would impose preverse incentives on the people who work in the healthcare system, and that is undesirable because they are in contact with patients who many times are in a state of vulnerability and/or uncounsciousness.