A cargo of Scotch whiskey valued at more than eighteen thousand dollars is destroyed by federal prohibition agents in Los Angeles in 1928. (Photo by Camerique/Getty Images)
Legislation which criminalises behaviour between consumers and sellers, that would otherwise be treated as lawful and normal conduct, frequently has adverse unintended consequences.
A prominent example of this is legislation that imposes taxes on specified things or conduct. Tax laws can be a major factor in giving rise to black markets in order to evade the taxes.
Economist…
