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Billy Sunday Reign of Tears. “The reign of tears is over. The slums will soon be only a memory. We will turn our prisons into factories and our jails into storehouses. Men will walk upright now, women will smile, and the children will laugh. Hell will be forever for rent”.
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Billy Sunday Reign of Tears • “The reign of tears is over. The slums will soon be only a memory. We will turn our prisons into factories and our jails into storehouses. Men will walk upright now, women will smile, and the children will laugh. Hell will be forever for rent”.
Violence in ProhibitionYou can get more done with a kind word, and a gun…
It’s A joke • Why Don’t Italians like Jehovah witnesses? • Italians don’t like any witnesses.
Prohibition Stats • 1920 consumption drops by 30% • Drinks $.15 in Saloon to $.75 in Speakeasy • 1925 100% of pre-prohibition levels • 1933 Volstead Act repealed • No change in consumption from 1933 to 1934 • Jeffrey Miron BU
Cocaine • 1884 Cocaine 1st synthesized • 1887 Narcotics illegal in Nevada • Active ingredient in coca cola until 1906 • Pure Food & Drug Act
Harrison Act 1914 • William Jennings Bryan Sec of State • Outlawed narcotics on Federal Level
DEA formed 1973 • 1972 Nixon Declares War on Drugs • 1973 DEA formed 1500 agents • $75 million budget • (300 Million 2006 dollars)
1984 Regan/Bush re-affirm War on Drugs • 1985 operation snow cap initiated • 1992 estimates of between 3-20% of all drugs entering US are intercepted • Supply and Demand(consumers) side targeted e.g DARE; Just say No • Does increased interdiction increase profits to the drug cartels
Opportunity Cost of Drug Enforcementin Florida • Property Crime Rate • 1981 77/1000 • 1984 63/1000 –18% • 1989 80/1000 +27% • Drug Arrests • 1984 39/10,000 • 1989 67/10,000 +72%
Making Cocaine • Coco leaves are picked in the field by peasants and transported to remote cocaine labs in the jungle • They are soaked in water, sodium bicarbonate and Kerosene • The liquid and acid is drained leaving a light brown paste
Cocaine paste • The paste is dissolved in hydrochloric acid • Acetone is added • Ammonia is added and the solution filtered
Final Product • The cocaine is weighed, bagged and diluted in ether to crystallize the final product • 90% pure • Four kilo bags then shipped to the United States
Prisons • 2008 2.3 Million Inmates @ $25,000/Inmate • 2005 2.1 Million • 24% drug related crimes • >$14.4 billion
Drug Arrests • 2005 • 1,846,351 Drug Arrests • 1,508,464 for possession 81.7% • 337,882 Sale 18.3% • 786,545 for Marijuana 42.6% • 88.5% for possession • 11.5% Sale • 2007 • 1,841,182 Drug Arrests • 872,627 for Marijuana 47.4% • 775,137 for possession 88.8% • 11.2% for sale • Uniform crime report
Prisoner Comparison/Country 2006US has 5% of World population25% of Prison population 2009
Other Costs/Taxes • Foregone Revenue • California 2000 • Tomato crop $1 Billion • Grape crop $3 Billion • Marijuana crop $9 Billion • 2006 Marijuana legal,$11 million collected in sales tax, 7.25% (about $150 million sales) • McConnell & Brue
Cash Crops US/2006 1Marijuana $35,803,591,000 2Corn $23,299,601,000 3Soybeans $17,312,200,000 4Hay $12,236,638,000 5Vegetables $11,080,733,000 6Wheat $7,450,907,000 7Cotton $5,314,870,000 8Grapes $2,876,547,000 9Apples $1,787,532,000 10Rice $1,706,665,000 Dept of Agriculture
Other Costs/Violence • 1991 24,000 murders • 10,000 fewer if drugs were legalized • Disputes can’t be resolved in court • Milton Friedman
Drug-related violence in Mexico, already at unprecedented levels, is expected to escalate further this year, with targets likely to include top Mexican politicians and law-enforcement agents and possibly even U.S. officials, according to diplomats and intelligence experts on both sides of the border. 1-25-09 Dallas Morning News
Other Costs/Law enforcement • 2006 DEA $2.5 Bil budget • 11,000 Employees • State Local County • Courts • Public Defenders
Why Dealers Deal/Benefits • Huge profits • Low Opportunity costs • Marijuana $3/lb • Cocaine $5/lb • Sale: Marijuana $2000 Cocaine $10,000
Drug Dealers Safe Deposit Box • Removable Stone from a fireplace
Why Dealers Deal/Costs • Expected Cost of Crime Florida data 1992 • Robbery • Expected prison time = p(victim reporting crime) x p(arrest) x p(trial) x p(conviction) x p(prison) x avg prison sentence x portion served • E(time) = .7 x .25 x .68 x .85 x .46 x 3139 x .45 = 65.7 days • Drug Sale • E(time) = p(trial) x p(conviction) x p(prison) x avg prison sentence x portion served • E(time) = .89 x .86 x .812 x 64 months x .41 = 16.3months • If 1 of 100 arrests 16.3 x .01 = 5.1 days
Federal Penalties • CCE 25 years $500K • >5 ounces narcotic 30 years $500k • ½ oz crack, 5 lbs marijuana < 5 oz narcotic • 20 years $300K 1st 30 years $500k 2nd • Other felonies 3-6 years $50k • Miron study: states that decriminalized marijuana fewer highway deaths
Drug Laws/Benefits? • United nations: 2002 • 5.2percent of Dutch 12 and older had used marijuana or hashish in the past year -- less than half the 12.3 percent rate in the United States. • WHO: 2001 study • Netherlands 28% of Dutch 10th graders tried marijuana • United States 41% of 10th graders tried marijuana • Drug policy has no effect on drug use
Café Fix Frankfurt Germanywww.cafefix.de • On the ground floor, you enter directly in the Café and drop in center. * You can just stay here and talk with people, play board games or eat and drink. * Our kitchen is serving hot meals, cooked daily, snacks and yoghurts, pastries and cakes as well as coffee, tea, soft drinks and freshly pressed fruit juices, all for low prices. * In the Café you have the possibility to get access to the showers and clothing room, to the laundry and to the hairdresser and to the beds to rest. * Here you can contact the social workers and the physicians of the medical ambulance. • Established 1990 • 1993-2000 • HIV declined 40% • Robbery 20% • Court drug cases 60% • Drug addicts amongst drug users declined from 27% to 9%
Conclusions • Draconian Drug policies aren’t effective • EDUCATION WORKS • Clinton/1992 cuts drug education budget by 80% Drug Use Increases • 1985 42% of population smoked cigarettes • 2004 21% of population smoked cigarettes • If GED or less 40% • If below poverty level 30%