The nature of the economic problem of drug use is that an individual's private consumption of drugs imposes costs and burdens on society. The magnitude of these costs varies with the individual consumer. The burdens may be small, trivial, or even zero in many or even most cases, but they are substantial in many other cases. Drug use involves externalities, which are costs not reflected by the price. The two basic approaches to addressing drugs are to restrict supply or to reduce demand. Official campaigns against an activity can still result in an increase in demand, either by inspiring the rebellious to indulge in the activity as a demonstration of independence or by increasing the price of drugs and making drug selling a way to earn money. One attitude toward the drug market is that it is a recreational activity not unlike alcohol. An alternative approach is not to legalize drugs, but only to decriminalize them. However, many historical experiences argue against the decriminalization of drugs. A recent heroin decriminalization experiment in Switzerland produced positive results, but one experiment in a wealthy and safe society such as Switzerland does not conclusively answer the drug debate in the United States. Although arguments both for current policies and for decriminalization can be made in an effort to reduce demand, the long-term benefits of decriminalization may well be substantial. Footnotes