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The more interesting question is: Once legal, we assume the cartels will lose profit margins as competitors move in. But, will the cartels move their violence t
by abfan1127 6y ago
The more interesting question is: Once legal, we assume the cartels will lose profit margins as competitors move in. But, will the cartels move their violence to shutting down the competition? Or is this a bluff to calm the cartels down, because they both know it will eat into their profits.
- dragonwriter 6y ago> But, will the cartels move their violence to shutting down the competition? Maybe, but then the government resources that went into fighting the cartels with the goal of eradication can go into fighting the cartels with the goal of suppressing unauthorized violence, with the financial support (through taxation) of the drug profits from the law abiding competition. (If they aren't amnestied for past violence, that probably happens to the cartels anyway; if they are, they are faced with a choice of peace and trying to monopolize the market from an initially-advantaged position peacefully and waging war on the competition which inevitably becomes a return to war with the government, but now with the competition's profits funding the government effort rather than the competition facing the same suppression and dividing government resources.)
- emiliobumachar 6y agoOrganized crime does maintain violent monopolies on legal goods in various times and places, but that tends to be much smaller than illegal markets.