A Libertarian Case Against Prostitution Legalization

[Bono]

When prostitution is legalized, the state intends to extend its area of business to the protection of sex workers. As it is known, this is a very lucrative business. The ladies on this trade are usually subject to risk situations, normally envolving very horny men who willing to vent their preferences for certain unusual kinds of sexual behaviour on them There exist, therefore, some very nice gentelmen always willing to help damsels in distress in exchange for a small fee and who knows a few special services.



This very nice gentlemen work in a very competitive market. They too frequently loose clients for competitors who offer a better quality/price relation. We should therefore expect prices to be relatively low.

Those who provide security to sex workers, depreciatively known as 'pimps', are looked upon with distress by the state, who hates competition. Therefore, the state would have decided to enter this business in full force. But for that to happen, one of two strategies must be adopted: either compete for the price, charging a lower comission, or compete for quality, offering protection services of a superior quality to those currently being offered. it is unlikely that the state can compete for the price, given that it intends to charge the most productive workers a comission of 35%+social security taxes. The state would have then to bet on quality, offering, for instance, social priviledges to the sex workers, which can be done through Social Security. Sex workers, who have a professional life of very short lenght. are particulary interested in the retirement plans the state has to offer. Nevetheless, the state-pimp has a credibility problem. As it is known, sex workers have a long experience of clients and pimps who fail to meet their promises. As it is also known, the state's retirement plan is nothing more than a Ponzi Scheme that would make Al Capone blush, not having any sustainability.
There are more honest pimps, and they know it.