The Economy of the Illegal Drug World

Economics is, essentially, a method of analysis that involves incentives; choosing the most beneficial option with the least effective loss. Cost is a factor, as well as consumption, demand, and many other important variables. In a society or, in this case, an underground system, economics is sometimes common sense, and precedents are made as opposed to legislative measures. A product is sent out from a single source, cost grows for the consumer as the product is fractioned and reduced in size. This is where the profit for distributors comes in. For example, a man residing in a neighborhood purchases an ounce of mids, or mid-grade marijuana, for $210. The man then divides the ounce into roughly 27.5 grams, and bags each gram individually. This is then marketed out to buyers, and a profit of $275 is yeilded from ten bag mid sales, assuming individual grams were sold in total to buyers. Typically what happens next is another ounce is purchased for $210 and the dealer gains $65; the cycle repeats. Pills are sold, at this point, based on availability, hence the wide range of prices in a small matrix of dealers. OxyContin can go for $1/mg OxyCodone. Some people want $40 for an OC40, some want $5, it all depends. The dealer asking for $40 may...

• a) be buying from an even more costly source
• b) be in an area where he is the 'monopoly'
• c) be in an area with low demand
• d) or simply have a very cheap source and very high demand.

'd)' is just 'b)' backwards ;). The system is just like the business world, profit is founded on middle men and manufacturers, interdepending upon each other. Although it is not, and can not be, that simple. The system is not only involved in trafficing, but also service. Dealers will pay to have a taxi to their sales, and that also increases income, so gain is acheived for both as the dealer's radius of availability grows. Yet we need to take in the amount of gas, the taxi won't drive simply for the ride, if there is no profit because all the bank was used on gas then a wise driver would push for more pay. But then the relationship/friendship factor arises, and that's a whole other variable that can make tremendous differences in economic activity. The market changes depending on almost anything. Prices will increase on drugs with harsher penalties as there is a higher risk to hold the product the dealer will only have the incentive to sell if the profit is worth the risk. The market is not gentle by any means, in fact it can eat you alive. It can lock you up, take your money, or ruin your life. It can have you killed. Competition is held above life, especially when it comes to mass quantities. Not some grambag dealer in your neighborhood, but dealers bringing tons across the map every day. In such situations, often your life is a price they're willing to pay for profit. If they're nice enough to bribe you, and you decline, you'll probably end up dead or nearly dead within the week. But such things rarely happen out of the mass quantity market. But some lives depend entirely on this market, and it can be dealt with right; it can be dealt with wrong. Some succeed and some are doomed to fail. It's all economics.

Drug Propaganda: Poisoning the Well

You see it on television; you see it in little pamphlets that are usually plastered all over the guidance offices of academic places. You hear it from the mouths of tons of people who have been passing lies down and been the victims of this phenomenon strikingly resemblant of a 'virus'.
The year 1906: the first significant instance of drug regulation occurs in the District of Columbia in the United States. The Pure Food & Drug Act of 1906 required the quantity and name of the substance to be printed on various drugs on the market.
Then, in 1925 in the International Opium Convention the United States supported the regulation of indian hemp, you probably know the more common term: Hashish. Banning the exportation of hashish and any derivatives or preparations containing it, and imposing regulations requiring that a certificate be issued. One provision of the certificate: Any hashish-related product requires notation that it is specifically for medical and scientific purposes. European hemp however, useful primarily as a fiber in various products due to it's low level of THC.
The Boggs Act of 1952 and The Narcotics Control Act of 1956
Increased punishment and mandatory sentencing inevitably occur through the years as more and more regulations correlating to marijuana are amended. Jail time and hefty fines are imposed upon possessors of the product. The act was repealed in 1970.
July First, 1973
Concern and fear grew in many American neighborhoods and cities over the increasing availability of drugs. Their fear was overwhelming, as in the 1960's drugs were mangled and the new technology for communication and improvements in multimedia utilities created the perfect outlet for propaganda. LSD, for example, was very short in terms of research and controlled experiments. Upon it's criminalization it was still very unresearched and swimming in a flood of government propaganda. It was urged by several congress members and federal employees that LSD was the reason for the 'rebellious' attitude that was consuming the vast majority of the adolescent population. The concern grew so much that on July 1st, 1973, the Drug Enforcement Administration (DEA) was conceived. Wouldn't you know it, this was a proposition of Richard Nixon's "Reorganization Plan Number Two".
Poisoning The Well
Vagueness can be deadly, and in the hands of organizations and websites like Freevibe, Truth, and Drugfree it is one of the many mediums through which they feed propaganda into the minds of young and old citizens. Advertisements rarely have any specific consequences of drug use listed, simply something such as a video of some kid disappointing his friend or letting his little sister drown and then saying "I was so high last night... What did I do?"
I'm not saying I oppose drug control. I oppose it's prosecution and the drugs they are regulating. Opiates need regulation. When it came to the US through Chinese Immigrants it ended up turning the country into a giant opium den and causing severe addictions and even deaths. Opium and synthetic or natural derivatives of it should be controlled because it has risks that pose a threat, and we've seen the results of a country with no opium. I oppose the way that anti-drug organizations mix false information and false truths into accurate information simply because they believe that drug use is bad. Freedom is always traded for security, and it's beginning to happen alot more than usual. I support harm-reduction, as that's essentially the purpose of this site. Stupid people do stupid things, and I'm here to let you know that dumb shit happens and how you can avoid it. I don't think it's anywhere near right to support the incarceration of myriads of innocent American citizens for simply possessing a natural plant. The research should occur before the legislation is set into motion, running off of heresay that is the result of years of false-truths being passed down is unintelligent and detrimental to the country.

Just take a look at one of the ad's, they're all ridiculous and there solely to regulate through fear-http://www.whatsyourantidrug.com/ads.asp

Yet, the government can't review anything, they're too busy digging up Jimmy Hoffa and dealing with steroid use among recreational sports.