This will be a victory for the drug dealers because their revenues and profits will dramatically increase. On the other hand this will be very terrible for the drug addicts because their expenses for narcotic will drastically rise. As we all know, most of the drug addicts are making money from criminal activities as shoplifting, burglary, prostitution, muggings and car stealing and that is why these crimes will increase too. This is an issue that politicians have to understand and if they are not willing, the criminality will increase and the social situation will get worse.
Economically, present situation has a demand and supply on the market of for example cocaine and heroin. To understand it, we must know what demand and supply means. Supply and Demand are basic factors which determine price ("Supply and Demand"). According to the theory of supply and demand, the market prices of commodities and services are determined by the relationship of supply to demand. Point where supply and demand meets each other is called market equilibrium. The three components of microeconomics demand, supply, and market equilibrium provide a foundation for almost any branch of economics. If we look at a market with cocaine and heroin and we see demand and supply, we get market equilibrium; this is when there is no new situation on the market. But if the drug control on boarders will increase, fewer drugs will get in the country, the market of cocaine and heroine will change. The demand will stay the same but the supply curve will move to left. Quantum will decrease and the price will rise up. Change of the supply curve will also change the market equilibrium.
Producing and selling drugs is illegal in almost all countries and these countries spend tons of money on prevention. There are people who think that drugs should be legalized and money spend on prevention could be used somewhere else where it is needed more as hospitals and schools.
