Officials earn more on illegal businesses. Let's see what happens for example with cigarettes. Europe has set a very high excise tax on these products. Now everywhere you can buy illegal cigarettes. They bring money to the officials and the police, but the state loses income.
In Germany there are people selling cigarettes in most parks. These guys, usually Asians, can really scare you. You're walking, thinkinking about something, and one of them jumps out of the bush nearby holding a bag of cigs
I'm not making it up, they are hiding these bags in the bushes so it's not that obvious. I've seen the police chasing them a couple times.
LOL! At least they're not hanging around there to rob you.
This is what happens when you tighten the supply of a product without a decrease in demand, people are just gonna find ways to get them. It's like telling your daughter to stop going out with that douchebag - you'll just inflame her.
I've seen a documentary about the Prohibition Era and it really turned nasty for everyone with the crime rates and injury from moonshine increasing. And you don't even have to make something illegal. We're also increasing the luxury tax on cigarettes here in our country and everyone's finding ways to get around that, from making lower quality products, adulterating the sticks, making each stick thinner, tax evasion and smuggling.