In the News
Government Failure - Indian Alcohol Ban Drives Unregulated Liquor
Proof that banning goods that produce negative externalities is rarely constructive.
In this case, the government of Bihar banned alcohol consumption in the state, driving its production and consumption underground, and exposing the population to the far graver danger of unregulated 'country' liquor and denying the government tax revenues.
It's a terribly sad tale, but, as most economists would recognise, all too predictable.