Wouldn’t legalizing drugs and prostitution stimulate the economy positively?

Apr 29, 2012   //   by Administrator   //   Blog  //  No Comments

kyle p Asked: Wouldn’t legalizing drugs and prostitution stimulate the economy positively?

Using macroeconomics, I have developed a theory. If these goods and services were to be legalized, then they would be counted towards United States GDP (assuming they were produced in the US). The purchasing of these new goods and services would increase Consumption, increasing Aggregate Expenditures and moving our Economy closer toward long run aggregate supply, which decreases unemployment and increases GDP. Is this theory incorrect?

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