Liberalize it...

It always strikes me as interesting that many items on the modern Republican social agenda require a huge amount of government spending and intervention to prevent their acceptance and assimilation into the fabric of society (think immigration). The war on drugs is a great example.

I'm a strong advocate of liberalizing drug policy - across the board. People have been doing drugs a long time - legalizing the inevitable raises income (through direct savings and taxation), will promote better addiction treatment, and allow for better regulation. And it will not increase the number of addicts (does legalizing gay marriage make people gay? did prohibition end alcohol consumption?). 

Estimates of US expenditure on the drug war range from 12 to 20 billion dollars a year in direct enforcement spending. Any way you cook the books that's a LOT of money. Money that could be very well used elsewhere - this is obviously the main benefit of liberalizing drug policy. The other benefit of liberalization, and I think this is implied in Mankiw's article, is a relaxation of prison sentencing. Since the 1980s, when the crack epidemic spurred mandatory sentencing, incarceration rates have skyrocketed - at no small cost.

Finally, think of the revolutionary implications for US foreign policy. Think if instead of eradicating poppy seeds in Afghanistan and coca plants in Colombia (thus turning farmers - and all the money - to warlords), the US government  bought the harvest while transitioning farmers to alternative crops. 

People may not want to hear such things but I believe in the idea strongly, even though the political will to make it a reality is lacking. I'm sure plenty of you disagree - let's hash it out in the comments. 

ADDENDUM: I largely agree with the rest of Mankiw's agenda (minus 8 - this should be done for all fields). I think it's relatively benign though and would love to see his specific take on what policies are needed to do these things in a responsible manner.

DISCLAIMER: This post is not an endorsement of drug use. Don't use it Saturday night at 4 am in your argument that you're fighting for a better America. Even if you don't inhale.