A case for prostitution
Charles Lammam, Simon Fraser University
We have all heard claims that recreational drugs like marijuana should be legalised - but prostitution? Some may respond to this proposition negatively since they perceive the notion of paying for sex as immoral, against their religious beliefs, or just downright wrong.
However, when sex is viewed as a legitimately demanded and marketable good irrespective of preconceived notions and beliefs, it seems plausible that such a market should justifiably exist.
The rationale for legalising prostitution and thereby creating a legitimate market for sex may require further explanation to readers who instinctively oppose the idea. So what follows is a discussion that attempts to demonstrate that a market for sex can be desirable, since it could: provide tax revenue that would not otherwise be collected; reduce unemployment for low-skilled and uneducated labourers (male and female); provide for more accurate measures of economic activity (and ultimately living standards); enhance the visual appeal of our downtown streets; and minimise the spread of sexually transmitted diseases.
Prostitution is one of the world's oldest professions. It has existed when such a service was considered "legal" and continues to exist when it is considered "illegal" (in Canada, anyway). It seems likely that it will be around in the future.
An interesting question arises: shouldn't the government receive valuable tax revenue from this "black market" activity if its existence does not depend on its legal status? If not, and its current illegal status persists, prostitutes and their associates (pimps) will continue their free-riding conduct - that is, earning tax-free income while taking advantage of public services (like roads, health care, education, etc.) at the expense of law-abiding taxpayers.
Freedom is a right claimed by many. Individuals should have the "right" to use any means (so long as it does not impose direct or indirect costs on others) to achieve a decent standard of living - even if the medium is their bodies. Furthermore, individuals are endowed differently; some with a superior athletic prowess, some with superior intellectual capacities, and others with superior sex appeal.
Just as those with superior athletic and intellectual capabilities can reap unlimited benefits (streams of payment) for their skills, so should those endowed with sex appeal. By legalising the prostitution industry, which tends to yield lucrative earnings, low-skilled and uneducated individuals have the opportunity to gain employment that arguably requires minimal skills. This outlet could be instrumental in decreasing the number of low-skilled and uneducated workers in the workforce and ultimately the rate of unemployment.
Like many hidden market activities, prostitution causes severe measurement problems with regards to gross domestic product. Some analysts estimate the total cost of the underground economy to be 15 per cent of the GDP in Canada. Currently, Canadian GDP is approximately $1 trillion, which yields $150 billion in unaccounted black market economic activity. Hence, legalising prostitution may be a step closer to achieving a more accurate measure of our country's true output and standard of living.
A market for sex can potentially clean up our streets. With legalisation, prostitutes could advertise their services in local business directories like the Yellow Pages, as opposed to dangerously loitering late at night on the streets of downtown Vancouver to market and inform potential clients about their "product offerings."
Imposing minimal regulations on the newly legal industry may be necessary to control for market failures, namely negative externalities. For instance, the prohibition of street advertising. Further, mandatory bi-weekly health exams to check workers for sexually transmitted diseases in addition to the mandatory use of contraceptives are other examples.
With the necessary standards in place - i.e. prohibited street advertising, health assessments, minimum age requirements, licenses for business operations, etc. - the benefits of having a legal sex industry may in fact outweigh the costs.
Some may argue that the enforcement of regulations may pose greater costs than is necessary for this initiative to be profitable. For opponents of governmental regulations, adopting a "laissez-faire" approach also seems feasible since the market may adjust accordingly.
If we assume that consumers of personal services are risk-averse to sexually transmitted diseases, one may argue that in order for suppliers of sexual services to be competitive, and for the industry to be sustainable, health check-ups and contraceptive uses may naturally become a part of the business model.
To answer the obvious question of whether such a proposition is viable, one needs only to look at the Netherlands. It is worth mentioning that prostitution as a percentage of GDP is approximately five per cent (a significant amount) in the Netherlands, where the activity is considered legal. This fact alone merits at least the consideration of the proposition that prostitution should be legalised, since a potential increase in our country's welfare is possible.