Buddism Essay Example | Topics and Well Written Essays - 2250 words

Buddism - Essay Example Buddhism is considered a philosophy and a religion at the same time, due to various reasons. First, it is a philosophy since it is a way of life. People have to adhere to the set standards of the way of life to be connected to the religion. Without focusing on this, one cannot be considered to be a Buddhist. In its philosophy or way of life, it is stated that people allied to Buddhism should have acceptable standards of behavior. This means that all the people in the religion have to adhere to the set standards to be considered as followers of the religion and philosophy. In many instance, the people have to connect their way of life to an awakening call. They have to change their way of life as they have been â€Å"awaken† from their previous lifestyle. This shows that when a person is joining Buddhism, they have to change their way of life to fit the religion. This will go a long way in ensuring the religious norms are observed to utter optimum. Buddhism as a philosophy in t he world has been elaborated to mean love for wisdom. The people in Buddhism must have unending love for wisdom to develop as straight and obedient followers of the religion. Since this is the vital element of the religion, anyone wishing to join the religion must adhere to the philosophy of awakening, and elaborate on unending need for wisdom. In the Buddhism teaching, people with freedom have to lead a better way of life due to their decisions on matters in the world (Keown, 6). With their increasing wisdom, they are able to make decisions that are for the benefit of their life and the religion as a whole. As a Buddhist, the immortal love for wisdom is a practical lesson that should be adhered to and protected. Since this is the core element in the religion, the love for wisdom was split into three main parts. Simplifying the love for wisdom was a practical element that ensured the people allied to the religion understood the message to core. In the first presumed path of the love for wisdom, a person allied to the Buddhism religion should lead a moral way of life. This is an acceptable standard that has been highlighted by the Buddhism culture. All the people that are in the religion should have a connection to other people that lead a moral life. As such, there is a need to have universal way of life, which is moral. This is by avoiding any activities that may be deemed mortal to the Buddhism culture. As such, leading a universal way of life that is moral is an element that needs to be achieved in the Buddhism culture. According to the Buddhism philosophy, people have to consider their away of life as sacred and only attempt activities that are acceptable. This is both in the society and the normal way of life (Keown, 7). With such in mind, the Buddhism culture will have a dominant society that initiates morality in the society. When a person leads a moral life, it creates a scenario where people accept the religion and its philosophical grounds. In bringi ng up the Buddhism culture, the prince, Buddha had been distracted in his early life. He was raised in the loyal life as a prince and had loyal life of ease. This was a life that would shield him from the miseries and cruelties of the world, which made the prince, live lavishly. However, he was often distracted by sensual pleasures and this led to luxurious living. With such a living, he had never encountered any form of

Second assignment Example | Topics and Well Written Essays - 1250 words - 1

Second - Assignment Example Hitherto, one needs to clarify this result: was she pushed to stealing because of her social structure or was it her choice? In anthropology, this question can be shaped and reformed into one of the most famous debates in this field: what drives human action? Is it the social structure in which the human exists, or the agent, wherein the human action is due to decisions and free will? Not so long ago have I had the fortune to enter such a debate with some friends. The main subject of the debate was: was one of our friends actions due to her environment or was it her decision? I, honestly, believed that it was because of her environment and apparently her ability to deal with it was all because of how her environment shaped her. Therefore, going back to Liesel, I would say that her stealing was caused by her choking environment. In other words, its the social structure that shapes the human actions. Likewise, theorists such as Karl Marx, Emile Durkheim, and Marvin Harris would also agree in such notion. Social structure, in the simplest definitions, would be the arrangement of human relations in a society. At the same time, social structure would also be the environment in which humans exist. In this environment, it could either be the society or of the biological, physical or chemical origin (Harris). Now, going back, Marx, being one of the key theorists in anthropology, looked at human actions based on the interest of the individual itself. He gave the idea that an individual formulating ideologies force these ideas to the society in order to reshape the society where this individual grew up in. Incidentally, these ideologies formed by the individual came from the ideas presented by the society. In other words, Marx was trying to point out that humans would not be altering their society if, in the first place, they were not introduced to such

Mock IRB Proposal for Experimenta Psychology Class Essay

Mock IRB Proposal for Experimenta Psychology Class - Essay Example Then I planned to provide the questionnaire to different students at State universities to gauge their reactions to both the job candidates and their preference of which candidate for the job. By having students of both Caucasian and Black pigmentations take the questionnaire, I’ll be able to derive a clear idea whether racism is still present in the perceptions of young adults today. Although media and education have tried to erase the effects of hundreds of years of mental and physical slavery from the memory of American children, but the fact remains that prejudice comes naturally with human instinct (Buhler & Heim, 2001), thus even by meticulous education, people will tend to be biased against anybody who is in some way slightly different from them. According to previous studies, racism is as yet present in society and continues to have an adverse effect on the psyche of the African American community (Landrine & Klonoff, 1996). But those surveys were held on a general level, with the subjects being people from less-educated backgrounds as well as professionals and academics. I hope to be more specific and will target basically younger people who would be less susceptible to racism. In very obvious cases such as gender and pigmentation of skin, it can be easier to divulge whether bias still functions unconsciously (Landrine & Klonoff, 1996), whereas matters such as different nationality, religion, and background cannot usually be judged at first sight nowadays due to globalization (clothing, appearance are similar internationally). Hence by comparing two people identical in every manner except the color of their skin, and asking people their preference of one over the other; we can easily discover whether racism is as yet still latent in the normal American’s mindset. Another feature of interest would be whether racism is marked ‘white only’. Throughout history, the Caucasian’s remarkable ability to be hostile

STRATEGIC RECOMMENDATION Essay Example | Topics and Well Written Essays - 1250 words

STRATEGIC RECOMMENDATION - Essay Example The corporation was initially facing stiff competition with Circuit City; however, the failure of Circuit City (a former electronics dealer) in 2009 after deep economic recession and subsequent decrease in both domestic and international demand of electronic equipments, accessories and machinery has enabled the corporation to freely play in the market and gain additional market share. Its operational stores are more than 1,000 in USA and Canada besides online presence, whereas sales in 2010 remained over $40 billions. This is an evidence of Best Buy’s financial strength, resources and abilities. In addition, the company has solid brand recognition, consumer acceptance, an established supply chain and chain network followed by a large pool of loyal (plus satisfied) consumers who have an inclination to purchase Best Buy products. Also, the consumers are inclined towards electronics and gadgets perhaps because of their fast life and heavy exposure to media that portray innovation s. It must be highlighted that Best Buys has already introduced and has adopted various customer and partner relationships improvement strategies such as focusing on after-sales services, product installation (home theatres, computer configuration etc.), product warranties, and others etc. These were not adopted in past, but have now been a major part of firm’s strategy to entice customers, improve their perceived loyalty and value, and to gain a competitive edge over its rivals something it has done better in the past than any national electronics retailer. It is also expected that it would increase the sales of company in both short and long run. However, the economic recession, reduction in households’ real incomes and purchasing because of poor employment prospects is a threat that could hinder the growth of this industry in the short run, but the recovery of economy from recession, improvement in business outlook, certainty and security in job market will improve the

Analysis of two stories from Roald Dahls Tales of the Unexpected Essay Example for Free

Analysis of two stories from Roald Dahls Tales of the Unexpected Essay The story is about an old lady, Mrs. Foster, who doesnt like to be late. Her husband teases her by always being a little bit too late, just to make her suffer. One day, she is going to Paris to see her daughter and her family, but she has to wait for her husband to be done, because he is driving with her, to be dropped off at a club. When he finally out in the car with her, he has forgot his present for her daughter, so he goes back into the house to get it. She goes up to the door of their house, but when she is about to open it, she suddenly hears a strange sound and goes back into the car. She tells the driver to go, even though; Mr. Foster is still in the house. She catches her plane and enjoys her time in Paris, but when she gets back home, after six weeks, there is no lead of Mr. Foster. Then she calls a guy, which can come and fix their lift. You would think that Mrs. Foster is the main character in this story, because we are following her life and the story starts up with an introduction of her. But at the same time, we are also introduced to Mr. Foster right after, and in the end of the story, you wonder if it actually was Mr. Foster, that we were supposed to keep up with, because he is kind of the victim in the end. Almost like we are told about how he died in their lift, because of his lunatic of a wife. And then still Mrs. Foster can be seen as the victim, because she is this sad woman, who is manipulated by her husband, and then finally does what she has always wanted to do, just in a more drastic way. So therefore I see them both as main characters in this story. Mrs. Foster is described in the text as a woman with a pathological fear of missing something, and if she feels that she is about to miss something, she gets into a state of nerves and starts to wink with her left eye, because of a vellicating muscle in the corner of her eye. She lives in a large six-storey house in New York City, on East Sixty-Second Street with her husband and they have four servants. She is also a modest woman, who has served his husband loyally and well, for over thirty years, but she still wonders sometimes, if his husband always is being late on purpose, just to torture her. Her biggest wish is to live in Paris, so she can see her daughter, her son in law and her grandchildren all the time. Mr. Foster is nearly seventy years old and also living with his wife in their large six-storey house. He is described in the text as a man who tortures her wife, by always being late, because he is irritated by her making a fuss about everything. And he smokes cigars. We can tell by their big house, their four servants and their rented car with a chauffeur, that they are a very wealthy couple. They dont speak to each other like a normal couple; Mr. Foster has disciplined Mrs. Foster to not say, what she wants to say, like she is under his control. Like it says in the text; that she would never dare to call out and tell him to hurry. He had disciplined her too well for that. The Landlady The story is about a young man, Billy Weaver, who has travelled down from London, and now he needs a place to sleep. He was told that he should try The bell and dragon, but on his way down to the hotel, he suddenly catches sight of a printed notice, that says BED AND BREAKFAST on a boarding house. He stares at the notice and feels like the words are a large black eye that is staring at him, like he is forced to go in, so he decides to do it. A middle-aged woman invites him in and shows him where he is going to sleep, and she keeps talking about how she has been waiting for a young boy like him. He later finds out, when he is about to write in her guestbook, that only two other guys has been staying there, and the latest guest is over two years ago. He finds it strange that he feels like he has heard these two guys names before. She keeps getting him to drink her tee, and then he suddenly notices that the dog he thought was alive is dead and stuffed. She tells him that she has stuffed them herself. When he sits for a moment, he finds out where he has heard the other guests names before, he has read about them being missing, in the newspaper. The main character in this story is definitely Billy Weaver, because we are following his moves and thoughts of the weird lady. Billy Weaver is seventeen years old and he has travelled from London. He is wearing a navy-blue overcoat, a brown trilby hat and a brown suit. He is a young businessman and he is trying to do everything briskly. When he is told that there has only been two guests before him and that the last guest was over two years ago, and that they are even still living there, he is a bit naà ¯Ã‚ ¿Ã‚ ½ve not to see that something is really weird. But you also know that he must be a smart kid, if he is already a businessman and he reads the newspaper. The old lady seems kind and harmless in the beginning, because she is calling him my dear and smiling all the time. And like it says in the text; She looked exactly like the mother of ones best school-friend welcoming one into the house to stay for the Christmas holidays. But when things get more and more weird, Billy starts to think that she is slightly dotty and off her rocker. We also know that she has a bad memory, because she has a hard time remembering her guests names. Billy and the old lady have no relation, the old lady is a total stranger to Billy, but he somehow seems to trust her anyway. And Billy is also a total stranger to the old lady, but she keeps talking like if she knew that exactly he would show up on her doorstep, almost like if she had been watching him. Comparison of the two stories Both stories are written by an omniscient 3rd person. And in both of the stories they are using the language dear; In The landlady the old lady probably uses it, because many British old women spoke like that in the old days, but also to sound extra kind, to Billy. And in The way up to heaven, it sounds like they are only using it because the finer families spoke like that in the old days. So both of the stories could be going on in, maybe the 50s. Mrs. Foster and the landlady are both killers, but really different kinds; Mrs. Foster is feeling trapped in her marriage and she has a fair reason not to save him, when she has the chance. And the landlady is simply a lonely lunatic, who wants fake company, by stuffing her victims. The landlady is killing them herself and Mrs. Foster just didnt save him, when she could. The main theme in both of the stories is deception, because in both of the stories, the victims have faith in their killers, but are duped by them. The ending of The landlady Then he said Are you sure Mulholland and Temple are upstairs? with a stiff look on his face. Of course they are, my dear. Im sure they are enjoying themselves, you shouldnt worry that much. She answered. Billys eyes flickered and his legs felt so heavy, when he tried to stand up. Sit down, my dear. It will soon be over she said, with a calm tone in her voice, like nothing was wrong. Billy couldnt walk, so he sat down again and tried to hold his head still. Something is wrong with me! What did you give me? he yelled with a pathetic voice. She smiled and went over to the windows to draw the curtains, and when she sat down again, she started telling him, that she had been looking forward to having such a young boy in the house, and that she had been waiting for him for such a long time. Why do you want me, you crazy woman? he said. Youre just perfect, my dear. So young and handsome! she said, still witch a nice and calming voice. Billy didnt get to say much more, before everything turned black. One month later MISSING! A seventeen year old boy named Billy Weaver, last seen in Bath.

Pros And Cons Of North America Free Trade Marketing Essay

Pros And Cons Of North America Free Trade Marketing Essay This report provides an analysis of the current and prospective profitability, pros and cons of North America Fee Trade Agreement. The analysis also includes the origins, objectives trend, and the advantages as the comparative advantages, standard living and nation policy, together with the disadvantages such as the deep analysis about the job loss in United State and the human right and nature. Other supporting ideas includes the detail information about the profit that this agreement bring to the people in US, Canada, Mexico and the wide countries, its purposes and goals, or the return from the investment as well as the loss. All the related detail and calculation can be found in the appendices. General earning from this free trading also estimated below industry averages. In particular, comparative performances in the areas of the markets control as well as the evaluations from NAFTA. The report finds the prospects of this agreement in its current position are evaluating and developing. The major areas of weakness require further investigation and remedial action by governments. Besides that, because NAFTA has many pros, governments also need to adapt and try to reduce the bad effect to countries which already become the one union. The report also investigates some limitations that NAFTA had through the analysis of advantages and disadvantages. Some of them are the connection between the government and companies, which lead to the fact that many companies have the disadvantages without the supporting by the union if they choose to stand independently. Furthermore, the lack of attention to the right of human due to the rush and overwhelm working hour and their insurances are low and unfair which develops by the maquiladora programs from NAFTA. II. Introduction. Origins. According to Paulette  L.  Stenzel (2010), The North American Free Trade Agreement (NAFTA) is an agreement signed on January 1, 1994 within the 3 three countries United States, Canada, and Mexico which become the largest free trade area in the World (GDP). NAFTAs purposes are reducing the trading costs, increasing the business investment and help North America to achieve a wider position in the global marketplace.   When these three countries signed NAFTA, US and Canada had agreed to sign the United States-Canada Free Trade Agreement (CFTA) and added this agreement into NAFTA. Because of CFTA, there will be a change in place of the agricultural trade before NAFTA. Most of the food in United State and Canada became duty free on January 1, 1998. NAFTA began the implementation on January 1st, 1994 and going to be develop in 15 years.  Ã‚   Objectives. Some of the objectives from the agreement include the tariffs eliminate on the trading between Canada, US and Mexico and prepare a standards the provision of national treatment for other signatory countries foreign investors. Furthermore, to ensure markets secure access with the improvement on the settlement mechanism of the dispute, this agreement also help the member countries companies to have more procurement opportunities to increase the access of the government. In addition, NAFTA improves the professionals of business people and their cross-border movement within some selected countries to be stronger in protection of intellectual property right. A vast of new business opportunities had opened up by NAFTA for the three partner countries and other countries that want to enter North American market. Based on this, the investors come from other countries stay at a location in Canada can have the ability to attend the whole area of North American market.  Moreover, NAFTA has an entry in force which said that the significant increases experienced by the parties a in the goods and services trade among them. There also an agreement from the three Customs Administrations about NAFTA Rules of Origin Regulations (the Regulations) and the Rules of Origin of the NAFTA. In the worsened conditions of the economic in 2008; during the U.S. Presidential campaign, NAFTA became a hot issue again. Senators Hillary Clinton a democratic candidates and  Barack Obama  both blamed the loss of American jobs manufacturing to NAFTA and make a suggestion about the renegotiated for this term which will need to include the higher labor cost and the environmental standards. III. NAFTA pros and cons. Advantages. It is no doubt to say the most advantages that NAFTA bring to 450 million people in the U.S., Canada and Mexico is the free entrance in trading not only in their own country zone but also in the worldwide market place. With the national policies which support those countries with lower cost in export and import, it is responsible for $1.6 trillion in goods and services annually. It also decreases the inflation by reducing the cost of import to have more view, lets look into the figure of United States economy via the data of GDP rate which increased steadily 5% a year; it is the clear evidence to show the advantages the NAFTA bring to their countries. Comparative advantages. According to David Ingram (2009), NAFTA helps international trade to eliminate the tariffs between members countries by boasting the natural advantages that they owned. This means that they can low down the cost of production line and provide to the consumers more reasonable price of product because of cheap materials come from their natural resources advantages. U.S is famous for their high quality consumers good with low cost, while the strength of Mexico is agricultural product such as foods and crops. NAFTA eliminates the tariff between two countries so that US can purchase the crops and poultry with cheap price from Mexican, while Mexican can buy the cheap consumer product with high quality from US also. Thanks to NAFTA, agricultural exports to Canada and Mexico grew from 22% of total U.S. farm exports in 1993 to 30% in 2007. Standard living. NAFTAS goal is to reduce tariffs among Mexico, Canada, and the United States over a period of years, making it easier to trade goods across national borders, and increasing economic efficiency in North America. It clearly deserve the strong support of all those who believe in liberty and free markets. Moreover the standard living of people in those countries has risen day by day together with the demand of high quality produce comes from US (Freedman, 2004). NAFTA provides the free market with high demand of product, which will lead to the risen in the number of jobs needs. 25000 jobs are created for any additional billion dollars the US export. Over 150000 new jobs associated with NAFTA were reported during the last 5 years (Shahabbuhin, 2003). Nation policy. Free trade innovation will give nation the chance to step closer to each others and be more active in coordination. It also helps to reduce the rate of illegal immigration and international smuggling from nation to nation. Moreover, NAFTA protect the intellectual property right of members nation with their own policies regulations. Disadvantages. Job loss in United State. Many manufacturers in United State had to move jobs to lower-cost Mexico with lowered wages, manufacturers still competed in industries. NAFTA did not support enough for Mexican labour and environment protection and caused the lost of manufacturers 1.3 million farm jobs in Mexico. The organization exported corn and other grains with low-cost so Mexicos farms reduced output from 33.2% in 1990 below 13.2% in 2001. So many rural Mexico s farmers refused to cooperate with NAFTA because they could not compete with the other as well. Moreover because Mexicos labour were cheap, many manufacturers in United State chose to move the place they put all of their production line. It leads to the fact that bbetween 1994 and 2010; Mexico totalled $97.2 billion, were displacing 682,900 by U.S. jobs. About 80% manufacturers were in trouble situation such as: California, New York, Michigan and Texas. Besides, the companies did not move to Mexico they selected one of two options: belonging to the union or losing the factory. And they without supporting by the union so they had so many disadvantages to compete with little bargain power. Human right and nature. NAFTA opened many maquiladora programs where employees were paid low salary and exploited with more 12 working hours in a day. These workers have no labor rights or health protections, workdays stretch out 12 hours or more, and if you are a woman, you could be forced to take a pregnancy test when applying for a job, according to Continental Social Alliance. On the other hand, with manufacturing products influenced on environment directly in Mexico because of using fertilizers and other chemicals. So enviroment took pollution and they spent more 36 billion each year to deal with environmental consequences. NAFTA are many pros so the union should adapt and reduce bad effects to countries which belong to the one. IV. Conclusion. From the former paragraph we can see that NAFTA was established for 18 years from 1994. During this period, we can know NAFTA has its own advantages and disadvantages. In 10 years, NAFTA promotes the economy of Mexico, but Mexico still need a long time to catch up with another two countries. And Mexico should catch this chance and invest in education, telecom and innovation, America and Canada should avoid the risks to create the bigger business opportunities. All in all, NATFA should be kept and develop, it will promote the economy in North America.

Supply Demand And The Market For Drugs Economics Essay

Supply Demand And The Market For Drugs Economics Essay Supply-side initiatives are actions meant to cut or reduce the supply by preventing drugs from entering the country. A supply reduction, unless it totally eliminates the flow of drugs into the market, works by raising price so that consumption is cut. A decrease in supply, without a change in demand, will result in a new market equilibrium where the market price is higher , but the quantity of drugs bought and sold is lower. However, the critical factor that determines the magnitude of the changes in price and quantity is the elasticity of demand. Two concerns have emerged with regard to drug supply restriction in the context of an price-inelastic demand. First, it has been observed that lower-income addicts who cannot substitute away from the drug after the price increase tend to resort to minor crimes to support their habit. Second, addicts who have to reduce purchases tend to adopt the faster, but riskier, route of inducing euphoria by injecting the drug. A policy-maker must be aware of these potential consequences. Clearly, therefore, if both supply-side and demand-side initiatives are costless, well conceived demand reduction efforts (i.e., schemes to prevent drug abuse by the young through prevention, education, rehabilitation of existing drug users) promise an unambiguously positive outcome relative to effective supply restrictions where there may be an offsetting expenditure effect arising out of the price increase (i.e, when the demand for drugs is inelastic, 0 > ÃŽÂ µ > -1, D2: , or perfectly elastic, ÃŽÂ µ=0, D1: y=1000). As shown in panel (a) in Figure 1, a vertical demand curve is perfectly inelastic at every price. If the price goes up, the quantity demanded is unchanged (), so the elasticity of demand must be zero: ( A demand curve is vertical for essential goods goods that people feel they must have and will pay anything to get. In our case (i.e., drug addicts), the demand curve for drugs could be vertical at a days dose, Q*=1000. More realistically, an individual drug addict may have a demand curve (panel (b), Figure 1) that is perfectly inelastic only at prices below p*, the maximum price he can afford to pay. Because he cannot afford to pay more than p*, he buys nothing at higher prices. As a result, his demand curve is perfectly elastic up to y* doses at a price of p*. In Figure 2, the demand for drugs is shown by the downward-sloping demand curve (D2) to reflect the negative relationship between price and the quantity demanded. It has been drawn with a steep slope because it is commonly held that addiction suggests price inelasticity in the demand for drugs, If true, it implies that an increase in price will be accompanied by a less-than-proportionate decrease in the quantity demanded. The supply curve (S), on the other hand, mirrors the behaviour of drug suppliers. It is drawn with a positive slope since higher prices will attract larger quantities from suppliers and vice versa. Moreover, the value of the elasticity coefficient (È  >1) suggests that the supply is price elastic; small increases in the price of drugs are thought to draw a more-than proportionate increase in the quantity supplied. As shown in both Figure 1 (panel a) and Figure 2, the initial equilibrium is represented by point e, where price is established at p* and the quantity transacted is y*. For a supply reduction shown by S, the demand reduction must be at least as large as that represented by D2 and D1 in order for price to remain at its original level of p*. This is to ensure that the quantity transacted falls (to y*) without any increase in price. If supply reduction keeps the price high enough (at p*) and long enough to prevent a new generation from falling victim to the habit, demand may fall in the long run and succeed in lowering consumption and drug-related harms. Moreover, the twin benefits of a lower price and lower quantity transacted will only be obtained if demand reduction exceeds supply reduction, as illustrated by point f. Even so, the continued presence of drug sales and use, although at a lower scale, suggests that a drug-free society has not been achieved. However, the evidence everywh ere suggests that this goal remains a dream (Wood et al. 2009). In sum, the net benefit from attempting a pure supply reduction of drugs remains ambiguous if demand is price-inelastic (in our case, D1: y=1000 and D2: ). Thus, by launching simultaneous initiatives on both the supply and demand sides might guarantee an unambiguously positive net result, that is reduce the consumption of drugs. G2: A reduction in the drug-induced criminality à ¢Ã¢â‚¬  Ã¢â‚¬â„¢ Pure Demand-side initiative Demand-side initiatives attempt to reduce the demand for drugs at all prevailing prices or, in purely graphically terms, shift the entire demand curve to the left of its original position. Schemes to prevent drug abuse by the young through prevention, education, rehabilitation of existing drug users, minimisation of relapses among rehabilitated users and controlled and supervised substitution therapy, meant to deprive users away from harmful drugs, constitute some of the commonly used demand reducing measures. As depicted in both Figure 3 and Figure 4 above, starting from the initial equilibrium (e), I assume supply remains unchanged. A successful demand reduction will shift the demand curve leftwards (D2), causing it to intersect with the given supply curve at a lower price (p*). The new lower demand curve, D2, intersects with the original supply curve (S), resulting in a lower price (p*) and a lower quantity bought and sold (y*). The total expenditure on drugs is reduced as well, providing less incentives for drug-induced criminality or drug substitutions. The elasticity of supply now determines the relative magnitude of the movement in price and quantity. The more elastic (inelastic) the supply, the smaller (larger) the decline in price and the larger (smaller) the decline in consumption (i.e, drug-induced criminality) induced by a given demand reduction. Nevertheless, both variables move in the same direction. G3: A reduction of the emergence of organized crime connected with the (illegal) sale of drugs à ¢Ã¢â‚¬  Ã¢â‚¬â„¢Demand-side and/or Supply-side initiatives In the case of an inelastic demand and a elastic supply, the options for achieving a drug-free society are illustrated in Figure 5 above. Point e, as before, represents the equilibrium price and quantity before the anti-drug campaign. A purely demand-reduction effort to reduce drug trade (and consumption) to zero requires a big reduction in demand in order to shift the demand leftward to a point like f, where the lower demand curve (D2) intersects with the existing supply curve (S) and yields a street price (p*) that is so low that it is no longer profitable to supply drugs at all. In other words, the drug trade is wiped out due to insufficient demand. Alternatively, a purely supply reduction initiative to eradicate both the drug trade and consumption requires a substantial supply shift leftwards to a point like g, which yields a price so high (p*) as to make the drugs beyond the reach of buyers. Finally, a simultaneous shift leftward of both the demand and supply curves (arising from very effective supply and demand reduction initiatives) could, theoretically, see the reduction of the drug trade and consumption (and respectively a reduction of the emergence of organized crime connected with the (illegal) sale of drugs) at a price level that lies between the two extreme limits of p* and p*. Such a situation is shown by point h, where the highest price offered by the drug user (p*) is just below the threshold price (p*) considered profitable by the supplier. Moreover, the three options from above could be applied as well in the case of a perfectly inelastic demand in order to reduce the drug trade (and consumption) and respectively, to reduce the emergence of organized crime connected with the illegal sale of drugs. However, the drug-free society cannot be achieved (Figure 6). To summarise, price elasticities of demand and supply play a key role in determining the magnitudes of change in price and quantity induced by supply-side and demand-side initiatives. As noted, a pure supply reduction lowers consumption but increases price and, unless demand is very price-elastic, the reduction in consumption will be small but the total expenditure on drugs will increase considerably. On the other hand, a pure demand reduction lowers both price and quantity, with supply elasticity determining the relative size of the decline in both variables (additionally, consumption and expenditures on consumption will also be lower relative to the original level). In addition, whether an extreme objective of taking both demand-side and supply side initiatives is worth pursuing will depend upon how much it costs society to do so. If large shifts in demand and supply can be achieved at relatively low cost, a drug-free society is indeed a noble goal. b) The interpretations given to G1, G2 and G3 above looked at supply and demand shifts, ignoring costs. In deciding on an optimal policy, defined as one that maximises social welfare, costs become very important and must be weighed against the expected benefits. To be more precise, social costs must be weighed against the social benefits expected from a chosen policy option. P1: Increased punishment and/or increased probability of getting caught for drug-pushers To the extent that drug consumption transmits a negative externality, the social marginal benefit (SMB) from drug use must lie below the private marginal benefit (PMB), as reflected by market demand curve (D2, and D1 respectively) in Figure 7 and Figure 8 below. Assuming no externalities on the supply side, the market supply curve (S) reflects the cost of producing and distributing drugs. In a market without restrictions on drug supply or demand, the level of drug consumption (y*) will exceed the socially optimum level (y*). Enforcement on the supply side (i.e., increased punishment and/or increased probability of getting caught for drug-pushers) will reduce the market supply (shift the curve leftwards to SE), raise the price to p* and reduce drug consumption to the socially optimal level of y*. The after-enforcement supply curve will now incorporate the additional costs incurred by illegal suppliers to avoid detection and punishment (area abcd in Figure 7 and Figure 8). If demand is inelastic (D2 in Figure 7), the reduction in drug consumption will be small and the gain in social welfare from avoiding the negative externality associated with drug use will also be small. This gain is shown by the shaded area marked def (Figure 7). It is clear that these additional costs (area abcd) exceed the additional gain from reducing consumption (area def). However, by reducing consumption to y* via supply enforcement, society avoids the net loss shown by the def area. If demand is perfectly inelastic (D1 in Figure 8), despite the reduced consumption induced by the higher price (from p* to p*; since an individual drug addict cannot afford to pay more than p*, he buys nothing at higher prices, p*) due to a supply enforcement, total expenditure on consuming drugs will increase (area abce). This increased spending by persistent users translates directly into higher revenues for drug suppliers who remain in business. Hence, if the demand is inelastic (D2), or perfectly inelastic (D1), the total spending on drug consumption and the total resources committed to supplying drugs will increase. Thus, supply reduction under these circumstances has the unintended effect of drawing more of societys resources into an activity (illegal sale of drugs) that is being discouraged. Moreover, the impact of supply enforcement is also influenced by the price elasticity of supply; in general, the lower (higher) the supply elasticity, the smaller (larger) the effect of a given increase in enforcement in raising price and lowering consumption. Thus, the lower (higher) the price elasticity of supply, the greater (smaller) the enforcement costs and the likelihood of reducing the net social gain. In sum, if the demand for drugs is inelastic (D2) or perfectly inelastic (D1), supply enforcement may not be an efficient method of achieving the optimum level of consumption. This is because the cost of additional resources committed by the society (i.e., the additional expenditures by drug dealers plus the costs of supply enforcement) towards achieving this end will far exceed the benefits to the society. P2: Legalize the sale of drugs The effect of a supply restriction can be reproduced with a clear improvement in welfare by legalizing drug production and imposing an excise tax to reduce consumption to the optimal level. This is illustrated in both Figure 9 and Figure 10 below. In the case of inelastic demand, (D2 in Figure 9), assuming drug supply is legalized, the pre-intervention price and consumption are shown, as before, by p* and y*, respectively. Consumption can be reduced to the socially optimal level, y*, by imposing an excise tax equal to cd per unit of output. This raises the cost of production and the after-tax supply curve is indicated by ST . The market price of drugs increases to p*, consumption falls to y* and, as in the case of supply enforcement, net social losses (equivalent to def) are avoided. However, in contrast to supply enforcement, the tax extracts resources from the drug industry equal to the value of abcd. The effects of this reduction in resources are borne by both consumers and producers: the former, via a higher price and lower consumption rate, and the latter, by way of lower price and output. The resources are transferred to the government and will (hopefully) fund activities with a higher net social value. Of course, the suppliers and consumers do not necessarily bear the tax burden equally. The more inelastic the demand, the greater is the share of tax borne by the consumers. Similarly, the more inelastic the supply, the greater is the tax share borne by the suppliers. This point is better appreciated by looking at the equivalent estimate of the revenue collected, shown by the area marked p*cdp*. While the tax raises the consumer price from p* to p*, it lowers the unit price received by suppliers from p* to p*. Thus, in this example of inelastic demand, consumers pay a bigger share of the tax (area p*cdp*), relative to suppliers (area p*gdp*). In case of perfectly inelastic demand (D1 in Figure 10), Consumption can be reduced to the socially optimal level, y*, by imposing an excise tax equal to ce per unit of output. This raises the cost of production and the after-tax supply curve is indicated by ST . The market price of drugs increases to p* and consumption falls to y*. However, in contrast to supply enforcement, the tax extracts resources from the drug industry equal to the value of abce. The effects of this reduction in resources are borne by both consumers and producers: the former, via a higher price and lower consumption rate, and the latter, by way of lower price and output. Of course, the suppliers and consumers do not necessarily bear the tax burden equally. This point is better appreciated by looking at the equivalent estimate of the revenue collected, shown by the area marked p*cep*. While the tax raises the consumer price from p* to p*, it maintains the unit price received by suppliers at p*. Thus, in this exa mple of inelastic demand, consumers pay a bigger share of the tax (area p*cdp*), relative to suppliers (area dce). The net increase in welfare under the legalise-and-tax approach is assured because the tax, in effect, internalises the negative externality associated with drug consumption. Furthermore, apart from generating tax revenue, the resources necessary to discourage illegal production and control tax avoiders will be far smaller than the enforcement costs under a regime where all production is illegal. The authorities only have to raise the cost of illegal production above the cost of legal production to discourage the former. Despite the theoretical elegance of this approach, governments hesitate to adopt it because it is seen as morally wrong to legalise drug use, even if the longer-term objective is to restrain consumption more effectively. P3: Distribute drugs for free If the government were to distribute the drugs free (p*=0), the quantity would be y*=1000 when demand is perfectly inelastic (D1), and y*=2000 when the demand is relatively inelastic (D2). As depicted in both Figure 11 and Figure 12 below, starting from the initial equilibrium (e), I assume supply remains unchanged. In Figure 12, a successful demand reduction would be possible only in the case of perfectly inelastic demand curve, (from D1 to D1), causing it to intersect with the given supply curve at a lower price (p*). The new lower demand curve, D2, intersects with the original supply curve (S), resulting in a lower price (p*) and a lower quantity bought and sold (y*). The total expenditure on drugs is reduced as well, providing less incentives for drug-induced criminality or drug substitutions. However, the drug trade (and consumption) could not be reduced to 0. Furthermore, in Figure 11, in the case of inelastic demand (D2), the consumption is more likely to increase than to decrease. The implementation of a policy such as distributing drugs for free, will increase the quantity from y* (equilibrium quantity) to y*=2000 and reduce price from p* (equilibrium price) to p*=0. P4: Decrease the demand for drugs As discussed earlier in the paper regarding policy P1, the social marginal benefit (SMB) from drug use must lie below the private marginal benefit (PMB), as reflected by market demand curve (D2, and D1 respectively) in Figure 13 and Figure 14 above. Assuming no externalities on the supply side, the market supply curve (S) reflects the cost of producing and distributing drugs. In a market without restrictions on drug supply or demand, the level of drug consumption (y*) will exceed the socially optimum level (y*). In both Figure 12 (and Figure 13), persuasion efforts to reduce the demand for drugs are unaffected by the price elasticity of demand. Successful persuasion will result in the original demand curve, D2 (and D1) declining to D0. This will raise the overall social welfare, provided the costs of such efforts are not excessively large and if persuasion itself does not generate a large negative social value. As to sum up, the analysis of the optimal policy-instruments to be implemented on the market for drugs supports the conclusions of the earlier interpretations (G1 to G3): when the impact of a policy on welfare is considered explicitly, demand reduction delivers a clear improvement in outcome whereas supply reduction requires special conditions to do so. c) Goals G1: Reduction in the consumption of drugs G2: A reduction in the drug-induced criminality G3: A reduction of the emergence of organized crime connected with the (illegal) sale of drugs Policy-instruments P1: Increased punishment and/or increased probability of getting caught for drug-pushers D1, S D2, S D1, S D2, S D1, S D2, S By launching simultaneous initiatives on both the supply and demand sides might guarantee an unambiguously positive net result, that is reduce the consumption of drugs. If the demand for drugs is inelastic or perfectly inelastic, supply enforcement may not be an efficient method of achieving the optimum level of consumption. Well conceived demand reduction efforts promise an unambiguously positive outcome (i.e., less incentives for drug-induced criminality) relative to effective supply restrictions where there may be an offsetting expenditure effect arising out of the price increase. A simultaneous shift leftward of both the demand and supply curves (arising from very effective supply and demand reduction initiatives) could, theoretically, see a reduction of both the drug trade and the organized crime related with the (illegal) sale of drugs). However, a drug-free society cannot be achieved. A simultaneous shift leftward of both the demand and supply curves (arising from very effective supply and demand reduction initiatives) could, theoretically, eradicate the drug trade, and respectively , the organized crime connected with the (illegal) sale of drugs), thus achieving a drug-free society. Goals G1: Reduction in the consumption of drugs G2: A reduction in the drug-induced criminality G3: A reduction of the emergence of organized crime connected with the (illegal) sale of drugs Policy-instrument P2: Legalize the sale of drugs D1, S D2, S D1, S D2, S D1, S D2, S Governments hesitate to adopt this policy because it is seen as morally wrong to legalise drug use, even if the longer-term objective is to restrain consumption more effectively. To the extent that legalizing drugs would make them cheaper, it would create many new addicts and the incidence of drug-induced crime would increase. Thus, legalizing drugs not only does not decrease criminal behaviour; almost certainly, it would spur its increase. If there are any regulations or taxes of (for example, an excise tax)placed upon the legalized drugs, the emergence of organized crime, most certainly, will not be reduced. Governments hesitate to adopt this policy because it is seen as morally wrong to legalise drug use, even if the longer-term objective is to restrain consumption more effectively. Goals G1: Reduction in the consumption of drugs G2: A reduction in the drug-induced criminality G3: A reduction of the emergence of organized crime connected with the (illegal) sale of drugs Policy-instruments P3: Distribute drugs for free D1, S D2, S D1, S D2, S D1, S D2, S A successful demand reduction would be possible only in the case of perfectly inelastic demand curve, causing the new lower demand curve to intersect with the given supply curve at a lower price and a lower quantity bought and sold. Thus, the consumption is expected to decrease. In the case of inelastic demand, the consumption is more likely to increase than to decrease. A successful demand reduction would be possible only in the case of perfectly inelastic demand curve, causing the new lower demand curve to intersect with the given supply curve at a lower price and a lower quantity bought and sold. Thus, the total expenditure on drugs is reduced as well, providing less incentives for drug-induced criminality or drug substitutions. If one sees drug-induced criminality as criminality under the influence of drugs, then free distribution would increase drug-related criminality. Since drugs are distributed for free (p=0), the emergence of organized crime connected with the illegal sale of drugs is expected to be eradicated. Goals G1: Reduction in the consumption of drugs G2: A reduction in the drug-induced criminality G3: A reduction of the emergence of organized crime connected with the (illegal) sale of drugs Policy-instruments P4: Decrease the demand for drugs D1, S D2, S D1, S D2, S D1, S D2, S Persuasion efforts to reduce the demand for drugs are unaffected by the price elasticity of demand. Successful persuasion will result in the original demand curve to decline. Thus, the consumption of drugs is reduced. However, the drug consumption cannot be reduced to 0. Persuasion efforts to reduce the demand for drugs are unaffected by the price elasticity of demand. Successful persuasion will result in the original demand curve to decline causing a reduction in drug-induced criminality Persuasion efforts to reduce the demand for drugs are unaffected by the price elasticity of demand. Successful persuasion will result in the original demand curve to decline, causing a lower demand curve that intersects with the existing supply curve and yields a street price that is so low that it is no longer profitable to supply drugs. In other words, the organized crime related to the illegal sale of drugs is reduced (if not wiped out) due to insufficient demand.