The Economics Of Addiction

The history of economic thought is strewn with attacks on individual rationality.26 The consumer has been criticized for consuming on the basis of imperfect information, as well as not consuming because of imperfect information (that is, hoarding). The consumer has been criticized for steadfastly maintaining a consumption plan despite changing circumstances, problems, and severe difficulties (habits, addictions), as well as not maintaining established consumption plans due to changing...

In Defense Of Prohibition

An important American economist, Irving Fisher, was the champion of Prohibition within the profession. He organized a round-table discussion on the topic at the American Economic Association meetings in 1927. Here he claimed to have been unable to find even one economist to speak against Prohibition, despite a thorough search. I got a list of the economists who are supposed to be opposed to Prohibition, and wrote to them they all replied either that I was mistaken in thinking that they were...

The Prohibition Of Alcohol

The development of prohibitionism will be broken down into three periods. The birth of prohibition covers the period from colonial times to the Civil War. The politicalization and growth of prohibitionism occurs from the Civil War to about 1900. The adoption of national prohibitions occurs during the Progressive Era, roughly 1900-1920. The national prohibition of marijuana, which did not occur until 1937, is treated as a consequence of the adoption of alcohol and narcotics prohibition and the...