Two days ago, Mexican authorities seized 134 tons of marijuana in Tijuana, just across the border from California. The value of the seizure was estimated at $340 million. According to the logic of prohibitionist economics, such a huge bust should have quite a damaging effect on the marijuana market in the United States, right?
Wrong. Mexico confiscated more than 1,300 tons of marijuana in 2009 alone, and before that the average was more than 2,000 tons per year. Yet each year, production goes up and street prices in the U.S. remain relatively static.