The Harrison Act established a "sin tax" on the sale of narcotics. While commonly cited as the law that made consuming opiates illegal, it actually just made the possession of untaxed narcotics illegal
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The Harrison Act of 1914

This act imposed taxes on the medical use of marijuana, including physicians, pharmacists, and others involved in dealing it. It also made illegal the possession and sale of marijuana for non-medical reasons. Furthermore, such harsh restrictions and fees on the use of medical marijuana (including extremely detailed record keeping) effectively ended the medical use of marijuana.

The Marijuana Tax Act of 1937

Ronald Reagan declared a war on drugs in 1982. What followed was a 45% increase in the relative effort against drugs from 1984-1889 and, by 1989, there were only about 2.2 Index I arrests per drug arrest.

Ronald Reagan and the War on Drugs

The official beginning of the war on drugs was under President Richard Nixon, who declared drugs the "greatest public enemy" and dramatically increased funding for federal drug agencies. The war didn't really "take off" in a big way until Ronald Regan, however.

The War on Drugs

A section within this law allowed local law enforcement to take a large share (80%) of property or money confiscated in a drug investigation, despite local or state laws that stated otherwise. This allowed law enforcement in places like North Carolina, which required that the proceeds from confiscations fund education, the local law enforcement could circumvent this and keep the profits for themselves.

The Comprehensive Crime Act of 1984

There have been several bills and politicians over time that have contributed to the illegality of drugs such as marijuana and opioids. This includes:
- The Harrison Act of 1914
- The Marijuana tax Act of 1937
- Ronald Reagan and his declaration of a "war on drugs"
- The Comprehensive Crime Act of 1984


University of Oklahoma

There are many black markets, including (but not limited to):
- illegal drugs
- sex work/prostitution
- human trafficking
- illegal wildlife

Types of Black Markets

Benson, Bruce & RASMUSSEN, DAVID. (1996). Predatory Public Finance and the Origins of the War on Drugs. The Independent Review. I. 

Predatory public Finance and the Origins of the War on Drugs

History of Illegal Drug Markets

Although still illegal in most areas of the U.S., the market for prostitution is thriving. Like in many places, the advent of the internet has aided the transition from outdoor prostitution (i.e., "streetwalking") to indoor prostitution, such as massage parlors and online arrangements. The indoor market makes up approximately 85% of the overall market, which itself generates approximately $14 billion per year in the U.S. alone.

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