Prostitution, the

Economy, and Heidi

Fleiss

By Josh ByronMr. DicksonEconomics

What is Prostitution?The practice or occupation of engaging in sexual activity with someone for payment.Prostitution is legal and regulated in Mexico, Senegal, Nevada, Bolivia, Colombia, Ecuador, Uruguay, Paraguay, Venezuela, Peru, Panama, Australia, New Zealand, Lebanon, Greece, Germany, the Netherlands, Hungary, Austria, Switzerland, Turkey, and Latvia.http://www.youtube.com/watch?v=H_DGSM5TOi4

How do brothels work?A brothel is a house were customers can visit prostitutes.Just like a regular form of business, like a partnership or a proprietorship, a brothel consists of an owner who offers goods or services, which, in this case is sexual intercourse, to paying customers.http://www.youtube.com/watch?v=bV6vAEmyoSc

Prostitution in NevadaProstitution is legal and regulated in 16 counties in Nevada, with a total of 28 working brothels.Nevada state law is extremely strict when it comes to prostitution. Licensed prostitutes need to be over 21 in most counties. Brothel prostitutes are required to be tested for STIs weekly, and HIV monthly. They are also forced to wear condoms 100% of the time. There are strict laws against child prostitution, as well.

Prostitution and the Economy

In states and countries where prostitution is legal and regulated, certain advantages come into play. One main advantage is that in certain states and countries (specifically Nevada and the Netherlands, which has the 16th largest economy in the world and only a 4.2% unemployment rate), prostitution adds several million dollars into the economy through specific taxes and fees.

Heidi Fleiss: The Hollywood Madame

Heidi FleissEntrepreneurKnown as the “Hollywood Madame”Started a prostitution ring in Hollywood.After getting caught, she served 37 months in prison. She was convicted on eight counts of conspiracy, income-tax evasion, and money-laundering.Currently owns the first brothel in Nevada that centralizes around a female customer base.http://www.youtube.com/watch?v=xh_OdFwjexk

“I had the party, I threw the party, I was the party, I partied out”

"There is no downside to legalizing prostitution. The government would benefit by collecting taxes on the industry. And regulation would clean up a lot of crime and help to protect women."

But, how does prostitution relate to economics?

The act of prostitution itself is considered a voluntary exchange, which is the act of buyers and sellers freely and willingly engaging in market transactions.

But, how does prostitution relate to economics? (continued)

According to this article (http://www.jour.unr.edu/outpost/community/archives/com.gormley.prostitute.html), prostitution actually pumps millions of dollars into Nevada’s economy through property taxes, licensing fees, liquor licenses, and work card fees. An estimated of over 10 million dollars is added into Nevada’s economy annually through brothels.

But, how does prostitution relate to economics? (continued)

And lastly, a brothel may be considered a form of business, since, just like any other business the government is forced to collect taxes.

Checkpoint (questions)How does prostitution relate to voluntary exchange?Why is Heidi Fleiss considered an entrepreneur?How does prostitution affect the economy in Nevada?

Checkpoint (answers)Prostitution relates to voluntary exchange in the sense that the consumer is getting what he or she wants.Heidi Fleiss is considered to be an entrepreneur in the sense that she started something that had never been done before (prostitution ring in Hollywood) to gain profit.Prostitution affects Nevada’s economy in the sense that it pumps millions of dollars into the economy through licensing fees, property taxes, liquor licenses, and work card fees.

Citation Page:"Prostitution." ProCon.Org n. pag. Web. 9 Mar 2010. <http://prostitution.procon.org/view.subissues.php?issueID=000042>.

Gormley, Lois. "Prostitution Pumps Millions into Nevada's Economy." Outpost Staff (1998): n. pag. Web. 9 Mar 2010. <http://www.jour.unr.edu/outpost/community/archives/com.gormley.prostitute.html>.

"EuroStat." EuroStat. N.p., n.d. Web. 9 Mar 2010. <http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-

"Heidi Fleiss." New York Times (2010): n. pag. Web. 9 Mar 2010. <http://topics.nytimes.com/topics/reference/timestopics/people/f/heidi_fleiss/index.html>.01032010-AP/EN/3-01032010-AP-EN.PDF>.