It is conventional wisdom that alcohol prohibition failed, but the economic reasons for this failure have never been as extensively detailed or analyzed as they are in this study by Mark Thornton.
The lessons he draws apply not only to the period of alcohol prohibition but also to drug prohibition and any other government attempt to control consumption habits. The same pattern is repeated again and again.
Thornton’s treatment of the topic is methodical. He first examines the history of prohibition laws, primarily focusing on American implementation of prohibitionist policies. He examines the prime movers in the alcohol, narcotics, and marijuana prohibition movements. He then examines the theoretical premises upon which prohibition advocates depend, and thoroughly exposes them as fallacious.
After examining the history and theory of prohibition, Thornton reveals the effects of such policies on the potency of illegal drugs. He explains how prohibition inevitably creates incentives for producers to increase the potency of drugs and alcohol products distributed via the black market.
Also investigated in this book are the effects of prohibition policies on crime rates and government corruption rates. Finally, Thornton discusses the repeal of prohibition, offering both public policy alternatives and truly free-market solutions.
According to Murray N. Rothbard, “Thornton’s book... arrives to fill an enormous gap, and it does so splendidly... The drug prohibition question is... the hottest political topic today, and for the foreseeable future... This is an excellent work making an important contribution to scholarship as well as to the public policy debate.”
Mark Thornton is the Peterson-Luddy Chair in Austrian Economics and a Senior Fellow at the Mises Institute. He is the book review editor of the Quarterly Journal of Austrian Economics, and has authored seven books and is a frequent guest on national radio shows.
Despite the real damage the Trump administration is doing to the economy, its cheerleaders in the Cabinet continue to insist all is well. This is beyond wishful thinking.
Dr. Mark Thornton joins Darrell to discuss declining trust in government, rising interest in Austrian economics, and why he believes the current monetary system is creating deeper problems for savers and the middle class.
Dr. Mark Thornton warns that surging long-term interest rates could expose deep vulnerabilities across the US financial system. He argues that government intervention is failing to stop rising rates while America’s enormous debt burden continues to grow. Thornton also warns that the AI boom may represent another technology-driven bubble fueled by years of artificially low interest rates and excessive investment. He says declining confidence in the US dollar and the erosion of dollar dominance could ultimately put America on the road to hyperinflation. Thornton explains why gold, silver, financial independence, and broader personal preparedness could become increasingly important as these risks intensify.
(1991) Salt Lake City: University of Utah Press.
