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If currently illegal drugs are legalized, the Food and Drug Administration (FDA) will have to be shut down, meaning that all health and safety restrictions on foods and drugs will be eliminated. Massive epidemics of diseases, overdoses and accidental drug interactions will occur. reference
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The legalization of drugs would not necessarily mean the shutdown of the FDA. The FDA would indeed play an important role in the regulation of recreational substances. The government's sole role in protecting the citizenry is to educate and warn. The FDA would ensure purity, dose size, and provide for accurate labeling, indications, and warnings where appropriate.
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