War on Drugs Farce Continues Unabated

In unsurprising news, the War on Drugs continues to be farcical disgrace. In the most recent example of ineptitude and futility, the United Nations Office on Drugs and Crime has released a report about an unprecedented rise in the development of new psychoactive substances (NPS). They also admit that the new illicit substances can actually be more dangerous than the ones the US has been attempting to eradicate for decades.

The UNODC reports:

 “This is an alarming drug problem – but the drugs are legal. Sold openly, including via the internet, NPS, which have not been tested for safety, can be far more dangerous than traditional drugs. Street names, such as “spice”, “meow-meow” and “bath salts” mislead young people into believing that they are indulging in low-risk fun. Given the almost infinite scope to alter the chemical structure of NPS, new formulations are outpacing efforts to impose international control. While law enforcement lags behind, criminals have been quick to tap into this lucrative market. The adverse effects and addictive potential of most of these uncontrolled substances are at best poorly understood.”

The irony is that if drugs like marijuana, cocaine and opium were legal and regulated, these new designer drugs probably would never have been created. After all, why buy a substance that can imitate a pot high when you can just pick up some pot? Keeping these drugs illegal ensures a market for alternatives, regardless of how much more dangerous they may be.

The UNODC even admits that there is no way to control these new creations because of the sheer complexity of their chemical structures. However, this won’t stop governments from trying to eliminate these new drugs by using force, the only tool they know. Over 40 states have enacted bans on synthetic cannabinoids alone. This futile game of Whack-a-Drug-Mole goes on.

The War on Drugs exacerbates the problems of illicit substances because it artificially lowers the supply, but can do nothing about the demand. Oriana Zill and Lowell Bergman of PBS’ FRONTLINE “War on Drugs” special explain:

“What keeps the drug industry going is its huge profit margins. Producing drugs is a very cheap process. Like any commodities business the closer you are to the source the cheaper the product. Processed cocaine is available in Colombia for $1500 dollars per kilo and sold on the streets of America for as much as $66,000 a kilo (retail).  Heroin costs $2,600/kilo in Pakistan, but can be sold on the streets of America for $130,000/kilo (retail). And synthetics like  methamphetamine  are often even cheaper to manufacture costing approximately $300 to $500 per kilo to produce in clandestine labs in the US and abroad and sold on US streets for up to $60,000/kilo (retail).”

There is intense competition to sell such a profitable product. The real, underlying problem with illegal drugs isn’t that they are dangerous—alcohol and tobacco are plenty dangerous– it’s that disputes are solved with gang violence rather than corporate lawsuits. It’s not as if Gang A can call the police or file a legal complaint when Gang B does something unseemly. A legal judicial framework is necessary to eliminate the violence now associated with the drug trade. After all, the same brutality was seen during America’s failed experiment with Prohibition in the 1920s when rival mob bosses were fighting for control over hooch. Alcohol is once again legal: When was the last time Coors and Anheuser-Busch had a violent turf war?

Like Prohibition in the 20s, the immense profitability of illicit substances has lead to an explosion in crime. In Mexico alone, drug-related violence claimed the lives of an estimated 60,000 people since 2006. Especially hard hit are journalists who try to shed light on the activity of the cartels. Mexico is the fourth most dangerous country for reporters, ranking behind only Syria, Somalia, and Pakistan. Over 50 have died or disappeared in the past seven years. In 2012, the bodies of two mutilated corpses were found tied up and dangling from a pedestrian bridge in Nuevo Laredo. A sign above them threatens:

“This is going to happen to all of those posting funny things on the Internet. You better fucking pay attention. I’m about to get you.”

Whereas Samsung and Apple intimidate each other through legal action, drug cartels rely on more visceral tactics.

For all that drug war proponents get wrong about the evils of illicit substances, they have inadvertently stumbled onto a profound truth: Marijuana is indeed a gateway drug. However, rather than being an inevitable rung on the ladder to harder drugs, pot is instead almost universally a person’s first entryway into the black market. It teaches people how to find drug dealers and how to negotiate with them. It teaches them the rules of underground markets and how to avoid the police. It teaches and constantly reinforces a contempt for authority.

Some do use this information to seek out new highs, but nowhere near the amount that drug warriors would have one fear. According to the National Institute on Drug Abuse, 12th-graders overwhelmingly prefer the softer stuff. The highest level of use in 2012 was alcohol, with 41.5% reporting that they had partaken in the past month. The second highest rate was marijuana with 22.9% having toked in the past 30 days. After that the usage rates nosedive: 1.1% for cocaine, .5% for methamphetamine, and .3% for heroin.

Exactly like Prohibition in the 1920s, current drug policy actively makes drug use more dangerous than it would be otherwise. For most high school students, it is dramatically easier to buy pot rather than alcohol for the blindingly simple reason that drug dealers don’t check for IDs. Another sinister aspect of prohibition is the lack of quality control. Pure coke or heroin can be cut with myriad substances in order to stretch the dealer’s supply and increase profits. Often these drugs are mixed with harmless products like baking soda, but not always. Dealers around the country have recently been cutting their heroin with fentanyl, a synthetic painkiller. The combination is extremely potent and often deadly. Since 2006, hundreds of deaths in Chicago alone have been attributed to this potentiality lethal combination.

By keeping business deals securely in the black market, drug prohibition ensures that users are at the whim of their providers. They certainly can’t call the cops if a dealer spikes his supply. Their only real recourse is to either shut their mouths or try to deal out some street justice, which only further exacerbates the problems of prohibition.

It’s time to end the damaging and pointless War on Drugs. While we’re at it, maybe we can end all wars against nouns. The War on Poverty and the War on Terror don’t seem to be terribly successful either, do they?

 

Sources:

http://www.unodc.org/unodc/en/frontpage/2013/June/2013-world-drug-report-stability-in-use-of-traditional-drugs-alarming-rise-in-new-psychoactive-substances.html

http://www.ncsl.org/issues-research/justice/synthetic-drug-threats.aspx

http://www.pbs.org/wgbh/pages/frontline/shows/drugs/special/math.html

http://www.nydailynews.com/news/national/mexico-deadly-journalists-targeted-cartels-article-1.1334310

http://www.bbc.co.uk/news/world-latin-america-10681249

http://www.drugabuse.gov/related-topics/trends-statistics/monitoring-future/trends-in-prevalence-various-drugs

http://www.buffalonews.com/apps/pbcs.dll/article?AID=/20130607/CITYANDREGION/130609332/1002

Failure of Central Planning and the Venezuelan Toilet Paper Shortage

Venezuelan officials continue to undermine individual freedom by further demonstrating the deleterious effects of economic central planning. The nation is experiencing shortages of dozens of staple items including rice, milk, butter and toilet paper. These shortages have been exacerbated by a new pilot program designed to limit the amount of goods each person can purchase. However, innovation and decentralization have provided a way for savvy shoppers to once again beat the government’s vain attempts to control the market.

In an attempt to curb the crisis, the western state of Zulia is embarking on a digital endeavor that will track the goods individuals purchase and will block them from buying staple products from different stores on the same day. Blagdimir Labrador, a state official, explains:

Considering the average size of a family, one person should only buy 20 staple products during the period that we establish, which we think will be one week.

The initiative’s pilot will be run in 65 supermarkets in Maracaibo, the capital of Zulia.

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The shortages were in part caused by price controls set into law during the Hugo Chavez administration, which keep goods like rice and flour below their market price. Steve Hanke, an economist at Johns Hopkins University, describes the flawed policy:

State-controlled prices – prices that are set below market-clearing price – always result in shortages. The shortage problem will only get worse, as it did over the years in the Soviet Union.

Although the intention of these policies was to ensure that the poor would have access to these necessities, their actual (and predictable) effect has been to dramatically reduce the supply of staple items.

Recognizing the shortage, many people are stocking up on supplies and some are reselling them at greatly inflated prices to needy Venezuelans. Zulia borders Colombia, where prices are several times the subsidized costs in Venezuela, and there has also been an increase in trade across the border.

Related Article: Income Inequality in America: Red Herrings and Wealth Envy

The result of this market mangling is an eminently foreseeable feedback loop: Economic controls and central planning distort the actual prices of staple products. This imbalance between cost and actual value leads to shortages which create incentives for people to hoard goods. This further diminishes supply, and by rationing the remaining goods the government further induces people to stockpile and the shortage is exacerbated.

In short, the Venezuelan government dug itself into an economic hole and is trying to dig its way out.

The national shortage of toilet paper has struck a nerve with many Venezuelans. In order to quell their frustration, the government says that it is going to import an additional 50 million rolls along with 760,000 tons of food.

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Amazingly, Commerce Minister Alejandro Fleming blamed the shortage of staple goods on “excessive demand.” To a dyed-in-the-wool statist, the inherent friction involved in managing a society is always to be blamed on the proletariat, never on the Top Men attempting to organize the nation.

However, people are already ingeniously subverting the statists’ attempts to model society. On May 29 Jose Augusto Montiel launched an app called Abasteceme, which translates to “Supply Me,” which helps people get around government-caused scarcity. The app utilizes crowd-sourcing technology that alerts users to supermarkets that still have desired goods in stock. According to Montiel, toilet paper and flour are the items most sought after by shoppers. When users find a store that has these items on the shelves, they flock to the market and whip out their checkbooks. More than 12,000 people have already downloaded Abasteceme, mostly in Caracas, but its popularity is spreading.

The economic problems in Venezuela are intrinsic to the state-controlled political legacy Chavez helped create. Venezuela ranks 174th out of 177 in the 2013 Heritage Foundation report on economic freedom, nestled neatly between Eritrea and Zimbabwe. Chavez’ authoritarianism echoes elsewhere in Venezuelan society, as Chavez repeatedly attacked and censored the media for criticizing his regime and held human rights in disregard.

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Central planners believe in Top Men who have the knowledge and ability to maximize the productivity of a country and its people. They fail, however, to have the humility to realize that this is an absurd task for any leader or politburo, as it’s inherently impossible for a group of few to effectively run a nation of many. History has borne this out repeatedly and this further elucidates the mindset of Top Men. Every problem or inefficiency can be blamed on the Little People who audaciously have an “excessive demand” for anything, be it toilet paper, a free press or even liberty itself. For them, the problem isn’t that their political and economic ideology is fundamentally flawed, logically destined to devolve into the same illiberal hell that every socialist government has thus descended.

It’s that the proletariat didn’t comply or simply that the “right” Top Men weren’t in charge.

Modern technology has made controlling human activity gloriously challenging. This is a decided advantage of living in the 21st century, where people can wirelessly transmit knowledge and innovate myriad wrenches to throw into the machinery of tyranny. However, to statists this development makes their ultimate goals more difficult to achieve. To them it is something to be stymied and snuffed out, perhaps most dramatically seen during the 2011 uprising in Egypt when the Mubarak regime literally turned off the Internet to make it more difficult for the protesters to organize.

This authoritarian impulse can also be seen in America, as news of secret NSA surveillance has been leaked. Also reminiscent of Chavez’ regime, the Associated Press was specifically targeted and the phone records for 20 reporters were seized by the Department of Justice.

The statist playbook is outdated; their only remaining tool is the administration of further force onto an increasingly unwilling populace. This gambit continues to work in many regimes around the world, but its expiration date is nearing. People have begun to realize that the decentralization of power and the abandonment of Top Men leads to freedom and peace.

By innovating to strip Top Men of their iron authority, the Little People—too numerous and evasive to be stomped out—can hopefully reject unwanted and unwarranted authority in illiberal governments around the world.

Sic semper tyrannis.

 

Related Article: Gossip Through the PRISM: NSA Shenanigans

 

Sources:

http://news.yahoo.com/venezuelan-state-considers-system-limit-food-purchases-160925448.html

http://www.telegraph.co.uk/news/worldnews/southamerica/venezuela/10112604/Venezuelans-use-smartphone-app-to-find-toilet-paper.html

http://www.telegraph.co.uk/news/worldnews/southamerica/venezuela/10062640/Venezuela-running-out-of-toilet-paper.html

http://www.heritage.org/index/ranking

http://www.hrw.org/news/2013/03/05/venezuela-chavez-s-authoritarian-legacy

http://www.wired.com/threatlevel/2011/01/egypt-isp-shutdown/

wondergressive.com/2013/06/11/prism/