Legalization of Prostitution - Essay Example

Legalization of Prostitution - How Legalization will Increase Efficiency and Reduce Welfare Loss Introduction Prostitution, which is the exchange of sexual services for financial reward, has a long and storied past. In order to determine what the response from society and the government to the practice should be, it is important to first distinguish the various sexual service markets. According to Cameron (p. 12), sexual service markets that involve deception, fraud, children, and coercion, generally those that are egregiously exploitative and non-consensual should be restricted due to their immoral nature. Normally, these latter practices are given terms like sexual slavery, sex trafficking, or human trafficking, while the service providers in these instances are slaves or victims. However, some sex service markets have no apparent coercion or forceful nature and involve sufficient compensation for the service provider. Arguments about the legalization prospects of prostitution normally revolve around the genuine existence of voluntary markets, as well as whether sex markets are inherently harmful, oppressive, and coercive to the subjects and third parties with no involvement (Cameron 12). Prostitutes are probably one of the most stigmatized people in the world. Those against the service contend that it should remain illegal because it is immoral, shameful, and has no place in a social order that is just. In addition, some feminist groups argue for its illegalization since it is a relic of patriarchal societies. On the other hand, those arguing for its legalization contend that it is a necessary evil, while most prostitutes believe that men need prostitution because it offers relief from complicated sex and loneliness. Abolitionist approaches to prostitution only criminalizes activities that profit from sex and human trafficking, rather than the sex service provider who are treated as exploited victims (Cameron 13). There are three standard approaches taken when considering sex markets that have no forced sex involved, including decriminalization, legalization, and prohibition. The latter approach criminalizes activities of clients, providers, and those profiting from transactions in the market, while the legalization argument is tolerant to the sex business and markets with industry-specific restrictions. The decriminalization approach, on the other hand, seeks to regulate sex markets as any other by removing special and criminal restrictions and regulations. The abolitionist approach lumps prostitution and sex trafficking together, while the decriminalization approach views sex markets as requiring regulations but not current regulatory schemes (Cameron 15). For this paper, it will be assumed that sex service providers are voluntary entrants who can assess their interests rationally. Literature Review According to Weitzer (p. 18), both money and time are being wasted in major cities of the world in the fight against sex work and services. While politicians are coming up with new legislation to eliminate prostitution, mayors across the United States are squandering precious money in ridding streets of sex workers. Politicians, however, fail to realize that prostitution will never be fully eradicated due to the essential nature of sex to human beings. Weitzer (p. 19) also contends that the legalization of prostitution in the Netherlands has allowed the city more resources and time to focus on other criminal activities and homelessness. Simply, they have come to the realization that if someone is willing to part with money for sex, as with all other markets, someone else is willing offer the service. In addition, because sex and payment for services are not illegal, payment for sex should also be legal (Weitzer 21). The legalization of prostitution in the Netherlands has also increased the number of tourists visiting Amsterdam. Alikhadzhieva (p. 65) contends, on his part, that the establishment of legal brothels in cities will lead to a decrease in market value for residential properties neighboring the brothels. In this case, the lower property value may attract lower-income individuals to the center of the cities, which, to some, may be the wrong place for them. This would result in deterioration of the economy since people like these would be dependent on the state for welfare. However, Harcourt et al (p. 484) argues that, using the map of Amsterdam for example, only ~10% of population in the city was not employed. In addition, the same author shows that at least 750 out of 1000 people living in the city were employed. This, from inference, means that there were more jobs available in the red light district than any other district in the same city. Due to the sex industry’s popularity, prostitution houses can charge inflated prices (Harcourt et al 485). This means that, following the researcher’s logic, the area would attract higher income individuals who would not be reliant on the state for welfare, thus, improving the economy. Scoular (p. 21) opposes the legalization of the sex service industry, contending that it is possible to eliminate it through rehabilitation programs. Apparently, these programs, referred to as the prostitutes and johns programs, would teach people about evils attached to sex work, leading to them backing away from involvement in the industry. In addition, it can also be inferred from his argument that the continued use of police to remove sex workers from the streets would discourage them from coming back to the streets. However, Scoular (p. 23) also seems to address himself to this argument, concluding that no city in the history of man has ever eliminated prostitution. In attempting to rid the streets of prostitution, therefore, governments would increasingly waste time and money in employing and deploying more police officers with the average costs of incarceration, court, and arrest amounting to some $1,900 for each arrest. In addition, the researcher claims that legalization of prostitution in some cities has resulted in these cities saving over $7.5 million every year, while also making profit out of the sex industry (Scoular 24). In fact, if governments still chose to combat prostitution’s spread, they could, instead of banning sex work; they should increase taxes on brothels. This should act to curb opening of too many brothels, while the government collects more tax and reduces wastage of resources on enforcement. It has long been argued that legalization of sex work could encourage more women to join sex work because it is easy as a profession, requiring no education or training. Because of this ease of joining the sex work occupation, as well as its legalization, it has been asserted this would act as an encouragement for young people to become involved in prostitution. However, Hayes‐Smith & Shekarkhar (p. 47) contends that only the least educated and poorest women will join prostitution due to lack of opportunity or money, while those with decent jobs will not become prostitutes. As of today, due to the illegal nature of sex work, most women without homes become prostitutes because they have limited sources of money. Failure to do so would result in them turning to crime in order to provide for their basic needs. If the police decided to incarcerate all these women, according to Hayes‐Smith & Shekarkhar (p. 47), the government would eventually utilize a lot of money if there were an increasing number of unemployed women. Say, for example, the cost of each arrest was $1,900; increasing numbers of prostitutes would result in more money being used to put these women through the criminal justice system. Niemi (p. 162) contends that legalization of prostitution would result in homeless people on state welfare being able to avoid incarceration, as well as their ability to get gainful employment. For example, Amsterdam has a population of homeless people ranging between 4000 and 4500 compared to a total population of over 720,000 people, which shows that it has become a roaring success in reducing unemployment and claims for government welfare. This is the crux of Levenḳron et al (p. 87) argument that legalization of prostitution would result in more jobs and reduction of homeless people around the city, consequently reducing crime. Therefore, it is possible from this review of literature that legalization of prostitution would result in acceptance of sex workers as an important and integral part of the global wage-earning workforce. The prostitute would be relied on by other wage earners for sexual gratification to relieve their tensions legally and improve job productivity. In addition, the sex worker will have the ability to be gainfully employed sans any fears of arrest. Therefore, the relationship between prostitutes and wage earners is beneficial for the two parties (Levenḳron et al 88). Whereas, today, sex workers are considered as johns for procuring illegal sex services and prostitutes are considered to be breaking the law, legalization would allow them to take part in lawful activities. Quantitative Analysis Conceptually, it is possible to attempt an incorporation of sex work into the conventional neoclassical analysis of supply and demand. Sex, essentially, is just like any other commodity and, therefore, it falls within the context of the standard theories of economics. Sex yields utility in a given period at a diminishing rate, while also obeying the laws maximization of utility (Reynolds 45). Thus, as such, the quantity of sex demanded occurs as an inverse of the price function. Rational humans will consume sex services up to a specific point at which the marginal benefits of consuming the service is equal to the marginal costs. Where the price of prostitution services rise in relation to other services and goods, then rational humans will elect to become less consumers of sex services. Prostitutes are required to be aware of the basic fundamentals of economics in order to maximize their revenue, as should the government with regards to taxation. If the price of sex is increased, then there will be a reduction in the demanded quantity of sex services and, potentially, so will revenue for both the prostitute and government if it legalizes prostitution, depending on demand elasticity (Reynolds 45). In order to maintain the viability of legalized prostitution, the government must treat the service as a business like any other. The demand for prostitution services resulting from legalization will see a simultaneous rise of commercial sex price. The sex service market is also fairly competitive with an increasing number of workers, coupled with the relatively homogenous nature of the sex product and largely ineffectual barriers for entry in the United States. Thus, workers in the sex industry have limited control over price of their services, which normally tends to be the dictate of the markets (Cameron 54). In legalizing prostitution, the government could also target those prostitutes who differentiate themselves from industry norms and, therefore, charge more. Where prostitution remains unregulated by the government, syndicates and pimps could complicate the market to start resembling a monopoly or oligopoly. Latov (p. 24) attempt to theorize and model normal sexual activity using an economic model. In their case, they maintain that, while man has biological drives, it is still required of them to control their needs and not engage in sexual activity as far as their biological capabilities allows. Utilizing a standard analysis of demand and supply, if sex was solely a result of biological urges and drives equal for the two sexes, the price of sex would be determined at zero. However, this is not so in the real world. To begin with, sex is not without cost because there is opportunity cost with regards to activities and time that people forego, as well as direct costs like the sue of contraceptives and the cost of initial courtship (Cameron 57). In addition, the cost of STD infection and pregnancy and psychological costs involved in the violation of one’s moral standards and subsequent harm to their reputation, as well as time spent in maneuvering sex strategies. In fact, it has been affirmed that traditional pressures from society are the biggest cause in the decline of females in the sex supply curve through the emphasis on female abstinence (North & Miller 65). However, because men achieve increased status from their sexual conquests, this has led to an increase in the demand for sex from men. The effect, overall, has worked towards an increase in the sex price and, more recently; it can be proven that the supply curve for females in sex work has shifted as shown in the figure below. This has been a reflection of supply increase, as well as the increased availability of abortion services and contraception by the government (North & Miller 66). In additional, societal norms with regards to the importance of female virginity have changed as women become increasingly active in pursuing the pleasures of sex simply for the sake of sex. Making the assumption that demand will not change, it can them be anticipated that the amount of sexual services and activity will increase, while the prices decline. Normal sexual activity involves various costs, which is what makes prostitution a viable business activity (Weitzer 21). While prostitutes could sell their services for $50 to $70, normal legal sex has potentially higher costs. If prostitution is legalized, men will not be required to spend mush of their time almost “stalking” prostitutes because they are guaranteed that sex will be provided. There is less emotional attachment and little concern for the needs of prostitutes since they are able to enjoy selfish and pure pleasure. The costs attached to a sex worker’s services could also be taken as being higher than those of normal sex because of their professionalism and experience. Decriminalizing prostitution and legalizing it would potentially cause an increase in the supply and demand for sex services because the associated fines and penalties of sex would be removed for both the sex solicitor and the sex worker (Weitzer 24). There would also be a significant reduction in the transaction costs, which would make for a more efficient market. By legalizing and imposing taxes on prostitution, the effect would allow for a backward shift of the supply curve as supply declines according to the amount of tax. The price the consumer will have to pay for sex will increase to Pc as the price that sex workers as suppliers would decline to Ps (Hayes‐Smith & Shekarkhar 51). Consumed quantity of sex will also reduce to Q1 from Q0, while the government would raise sex industry revenues equal to the area of PcA-BPs (Hayes‐Smith & Shekarkhar 51). The revenue could work towards making for a more efficient law enforcement service. However, raising the tax rate to exorbitant levels could result in the continuation of illegal sex work and trade, as prostitutes will find that it is more attractive to work outside the government’s legal framework. Conclusion By its very nature, prostitution is contentious debate sphere with government policy-makers succumbing to pressures from puritanical sources too often, suppressing the sex industry sans understanding the real dynamics of the industry. One perplexing issue about the prostitution debate is that, while it is accepted as a necessary evil and the oldest one as such, there is little research that places sex work within the context of economics. This area is still mythical in nature and could even be considered to be prejudicial. One can assert that sex work presents liberal democracies like the United States with a moral conundrum by beckoning regulation, all the while invading intimate relationships between men and women. As the United States transitions into regulating prostitution as it is doing with Marijuana, there will be need for economic policy reform and analysis. The government can no longer ignore the issues that the prostitution industry presents with regards to the economic recovery of the country. A lack of political will is still evidenced by the decision of the Bill Clinton administration to shelve plans for de-criminalization of sex work because of fears that they could face a backlash in the elections of 1996. This paper has sought to demonstrate that sex is not the only aspect present in prostitution but, rather, prostitution is an economic activity like any other, subject to market pressures and dynamics. The policy as it currently is in the US is out of line with the constitution, especially with regards to the Commerce Clause. Congress has no reason to continue harassing commercial sex workers with sanctions that end up placing increased burdens on the taxpayer. More research needs to be carried out in this field, especially with regards to the industry’s approximate size in both human and monetary terms. The first step should involve regulation and decriminalization of prostitution, which, in turn, should improve prostitutes’ working conditions and decrease the need to spend resources on fighting a “crime” that has never been effectively suppressed. In short, the role of the US government should be regulation of the prostitution industry, rather than its total control. The state must become, in effect, a benevolent pimp. Works Cited Alikhadzhieva, Irina. "Public Opinion about Prostitution and Measures to Prevent It." Contemporary Justice Review. 51.3 (2010): 60-68. Print. Cameron, Samuel. The Economics of Sin: Rational Choice or No Choice at All? Cheltenham, UK: Edward Elgar, 2012. Print. Harcourt, Charles; OConnor, Joe; Egger, Samuel; Fairley, Kenneth; Chen, Young; Kaldor, James & Donovan, Beatrice. "The Decriminalization of Prostitution Is Associated with Better Coverage of Health Promotion Programs for Sex Workers." Contemporary Justice Review. 34.5 (2010): 482-486. Print. Hayes‐Smith, Rebecca. & Shekarkhar, Zahra. "Why Is Prostitution Criminalized? An Alternative Viewpoint on the Construction of Sex Work." Contemporary Justice Review. 13.1 (2010): 43-55. Print. Latov, Yu. "The Institution of Harmful Goods Prohibition: Prohibitionism vs. Anti-Prohibitionism." Criminology Journal of Baikal National University of Economics and Law. (2010): 21-27. Print. Levenḳron, Naomi. Keren, Ella. & Vardi, Shaul. The Legalization of Prostitution: Myth and Reality: a Comparative Study of Four Countries. Tel Aviv: Hotline for Migrant Workers, 2013. Print. Niemi, Johanna. "What We Talk About When We Talk About Buying Sex." Journal of Law and Society. 16.2 (2010): 159-172. Print. North, Douglass. & Miller, Roger. The Economics of Public Issues. New York: Harper & Row, 2013. Print. Reynolds, Helen. The Economics of Prostitution. Springfield: Charles C Thomas Publisher, LTD, 2014. Print. Scoular, James. "Whats Law Got to Do with It? How and Why Law Matters in the Regulation of Sex Work." Journal of Law and Society. 37.1 (2010): 12-39. Print. Weitzer, Ronald. "The Mythology of Prostitution: Advocacy Research and Public Policy." Journal of Law and Society. 7.1 (2010): 15-29. Print. Read More