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Budgets/Taxes/Economics

We'll Pay You $14 billion to Legalize Marijuana

Our friends at NORML paid a visit to the Treasury Department today:

Earlier this morning, the organization presented a mock check to the U.S Treasury Department in the sum of $14 billion dollars. The check total represents the combined savings and tax revenues that would be generated by regulating the sale and production of cannabis like alcohol.

"We represent the millions of otherwise law-abiding cannabis consumers who are ready, willing, vocal and able to contribute needed tax revenue to America’s struggling economy," NORML Executive Director Allen St. Pierre said at a press conference at the steps of the general post office in New York City. "All we ask in exchange for our $14 billion is that our government respects our decision to use marijuana privately and responsibly." [The Hill]

Is anyone still confused about why marijuana reform is an economics issue? Mr. President?

Anyway, assuming the desperate folks at the treasury didn't attempt to cash it, let me be the first to offer a home for that large novelty check which would surely just take up space around the NORML office. It will make a sweet conversation piece. Give me that giant check, you hippies.


Allen St. Pierre, photo from The Hill Blog

"Economically, our criminal justice policies are cutting our throat"

CJPF President Eric Sterling has a simply fantastic article at Huffington Post illustrating the virtually infinite economic harm caused by drug prohibition and over-incarceration.

I highly recommend reading this, particularly because I often find reformers getting confused about the economics of prohibition. It’s easy to look at the prison guard unions, the small towns with big SWAT teams, the forfeiture-funded drug task forces, etc. and find oneself arguing that the drug war is all about making money. It’s true that drug war profiteering may help explain why certain interests will always shamelessly defend their piece of the prohibition pie. Yet, as Eric helpfully explains, the criminal justice system is hemorrhaging resources on every imaginable level, not only through the cost of maintaining our massive prison population, but also in terms of the lost economic participation of millions of inmates and felons.  

To whatever extent certain individuals and institutions may profit from the war on drugs, they do so at the expense of the economic health of the nation. Educating ourselves and the public about this concept is vital to framing the drug war debate in terms all Americans can relate to.

European Pressure: Turkey Must Fight Drug War, or Else

EDITOR'S NOTE: Kalif Mathieu is an intern at StoptheDrugWar.org. His bio is in our "staff" section.

I traveled to the city of Istanbul last week to stay for a few days with my school program of Peace and Conflict Resolution. Istanbul (and Turkey as a whole) is the perfect conduit for heroin being produced in the middle-east to reach Western European markets. Heroin and other drugs are commodities like anything else, and travel through the same general trade routes as other goods. Turkey is so strategically placed that according to Le Monde diplomatique in 1995 “An estimated 80% of the heroin on the European market is being processed in Turkish laboratories." (La Dépêche Internationale des Drogues 1995, Nr. 48)

So you might ask, “what’s so special about heroin traveling through Turkey? It’s just like any other trade between the middle-east and Europe.” The troublesome point is who controls the trafficking through the country and receives the profits of the trade. This happens to be the PKK, or Kurdistan Worker’s Party, a militant organization with a 30-year history of fighting the Turkish government to establish a separate Kurdish state. “According to Interpol […] the PKK was orchestrating 80 % of the European drug market” back in 1992, and “[o]ther sources similarly indicate that the PKK controlled between 60 % to 70 %” in 1994 reported the Turkish Daily News.

The state of Turkey has been increasing its process of Westernization recently in its desire to join the EU, and this has meant adopting a Western policy on drugs. Turkey has been very successful recently in increasing its police and border control effectiveness and eliminating corruption. The Turkish Daily News gave some convincing numbers: “According to the deputy customs undersecretary, there was a 400 percent increase in drug-operation success in the period between 2002 and 2006, when compared to the 1999-2002 period.”

However, even though Turkey has been, in recent years, dealing more and more forcefully with both the PKK militants and the drug trade, has this actually reduced the trafficking of drugs and the profits of the PKK? In the Turkish Daily News: “[t]he annual revenue made by the outlawed Kurdistan Workers' Party (PKK) has increased to 400-500 million euros, a top Turkish general said late Tuesday.” If the PKK’s revenue has increased, then it is logical to assume Turkey’s military campaign against them may not be considered a huge success. Not only that, but “200-250 million euros of [the PKK’s] revenue comes from drugs […] Gen. Ergin Saygun, deputy chief of General Staff said.” That makes drug trafficking 50% of the organization’s income!

The Turkish state has had a history of valuing the effectiveness of force. It was born from war, and the constitution has a controversial but often-utilized article that allows the Turkish army to organize a coup to eliminate the possibility of having a religious party in power. What is the point of these so-called ‘hard-line’ approaches to dealing with the nation’s problems if they are rather ineffective? Very little of course. The trouble comes from what the state could say to its citizens, to the international community, if it negotiated with the violent PKK or began to take the drug trade into the light by moving it towards legalization and either private or state control? If Turkey tried to clean up its smuggling and black market in such a way the majority of Europe, if not the greater ‘global community,’ would probably condemn the entire nation of betraying humanity and literally becoming evil. The reaction of many Turkish citizens would be perhaps lighter, but of a similar nature if the state sat down to negotiations with the ‘terrorist’ PKK. These are strong influences on the Turkish state, and severely limit its options. Therefore it seems Turkey doesn’t have much of a choice but to pursue the same policy of force it has pursued for more than 30 years, whether it benefit the people or not.

Company That Killed Iraqi Civilians Gets Lucrative Drug War Contract

What do you do when you've been kicked out of Iraq for killing civilians and your company's reputation is in shambles? Fear not, the drug war is always hiring, and there's nothing on earth you could do to disqualify yourself from employment in the accountability-free industry of international drug prohibition.
While Blackwater's mercenaries beg for mercy for killing a baby and 19 other people in Baghdad on Sunday, they're already working on another lucrative government contract on yet another foreign adventure: the "war on drugs." [Village Voice]
Details are sketchy since the government doesn't report eagerly on the creepy deals it makes with baby-killing mercenary groups. But Village Voice says they're building giant remote-control surveillance blimps.

It remains unclear what these blimps will be used for or what other secretive drug war endeavors Blackwater will be undertaking, but this much is for sure: it will all be phenomenally expensive and it won't change a damned thing.

Coordinated Drug War Raids as Taxpayer-Funded Lobbying

Peter Guither at the Drug WarRant blog has pointed out what he calls a "blatant and pathetic effort" by the State of Kentucky to secure drug war funding from Congress:
State police, local law enforcement, sheriff's offices, HIDTA and multi-jurisdictional drug task forces throughout the nation collectively conducted undercover investigations, search warrants, consent searches, marijuana eradication efforts, drug interdiction and arrest warrants for a period of one week. This collective effort, Operation Byrne Drugs II, was conducted from April 23-29 to highlight the need and effectiveness of the Byrne grant funding and the impact cuts to this funding could have on local and statewide drug enforcement.
Actually it is the media efforts that seem to be coordinated, in addition to the drug enforcement. I noticed a suspiciously similar press release distributed by the California Dept. of Justice last July about a suspiciously similar incident:
BNE task forces, comprised of state, local and federal law enforcement agencies, throughout the state served 16 search warrants, seized three firearms, confiscated 53 pounds of methamphetamine, 91 pounds of marijuana, and 37,747 marijuana plants. State drug enforcement agencies across the U.S. on July 27, 2006 participated in a "national day of drug enforcement." Organized by the National Alliance of State Drug Enforcement Agencies, "Operation Byrne Drugs" promoted the continued funding of the Byrne Justice Assistance Grant program that supports local and statewide drug enforcement. The federally funded program has suffered deep cuts over the last few years, directly affecting BNE. In fiscal year 2001-02, BNE received more than $11.5 million for personnel and operating costs. In fiscal year 2006-07, BNE received less than $6 million, nearly a 50% decline over five years.
your tax dollars at work to get more of your tax dollars
Now I run an advocacy group, and I can tell you with confidence that this is exactly what groups who want to achieve a legislative objective will do -- organize media-worthy events in order to get the attention of the policymakers you need to influence, in this case Congress. The main differences between what we do and what the narcs are doing are that: 1) They are using taxpayer funds to carry out their media/lobbying campaign to secure taxpayer funds; and 2) They are using the authority the government has given them to wield state power including guns in order to arrest and incarcerate people, as a component of their media-lobbying campaign. We will generally just hold a press conference or a rally, or issue a report. I suspect that in strict legal terms they have not violated the law. But make no mistake -- this is lobbying of Congress by state agencies to get our money, and they are destroying numerous lives in order to do it. I don't agree with drug enforcement at all (as readers know), but even for those who do, clearly enforcement decisions about when and whom to raid should be based on law enforcement/public safety needs, NOT politics. Unfortunately, it is not only drug money that corrupts our law enforcement; it is drug war money too.

Spare Us From Asparagus Tariffs (Or The Lack Thereof)

Eradication efforts in South America continue to find news ways of being counterproductive and unsuccessful.

From The Seattle Times:

The [U.S. asparagus] industry has been decimated by a U.S. drug policy designed to encourage Peruvian coca-leaf growers to switch to asparagus. Passed in 1990 and since renewed, the Andean Trade Preferences and Drugs Eradication Act permits certain products from Peru and Colombia, including asparagus, to be imported to the United States tariff-free.
…

Meanwhile, the Washington industry is a shadow of its former self. Acreage has been cut by 71 percent to just 9,000 acres.


Well at least something got eradicated. Perhaps Washington farmers will now turn to growing America's number one cash crop instead.

Notwithstanding divergent views on free trade among our readership, I'm sure we can all agree that tariffs shouldn't be arbitrarily lifted in support of a failed drug war policy in Peru. Any success achieved in South America (there hasn't been any, but bear with me) must be measured against the sacrifices American farmers are forced against their will to make impact of abandoning protectionism spontaneously. Factoring this against ONDCP's otherwise already pathetic claims of progress leaves a worse taste in one's mouth than that of canned asparagus.

This is what we're trying to tell you about the U.S. war on drugs. The people running this thing will screw over confuse American farmers while pretending to protect our nation's interests.

If they didn't anticipate this outcome, they are incompetent and should be permanently enjoined from drafting economic policy. And if they did anticipate this inevitable outcome, and took no action to mitigate it, they should be jailed for treasonous malfeasance and fed forever on the bitter canned fruits and vegetables of their hypocrisy.

Full disclosure: I don't like asparagus. Thus, it's humorous to contemplate the irony that we can now add asparagus proliferation to the growing list of undesirable drug war consequences. Our resident vegetable enthusiast Dave Borden might disagree, but I'm sure he'd trade all the asparagus in the world for an end to the ongoing international disaster of drug prohibition.

Update: In response to comments below and at Hit & Run, it's not my contention that U.S. farmers are entitled to protection against foreign competitors. My point is that drug war politics should rarely, if ever, be used as a justification to waive policies otherwise deemed appropriate by Congress.

Can't Handle The Truth?

A new report proving that marijuana is America's number one cash crop has sparked significant interest around the blogoshere, mostly from fair-weather friends of our cause who recognize the absurdity of prohibiting a product of such enduring popularity.

Indeed, this news highlights the failure of prohibition, both for failing to eliminate the market, and for driving its value above that of various more popular vegetables.

But the fun part is reading what the anti-pot crowd has to say. The most entertaining entry in this regard is from Scott Whitlock at Newsbusters: Exposing and Combating Liberal Media Bias, who cites this story as evidence of a liberal media bias at CNN.

Budget Axe Falls on Stockton Narcs

California's Central Valley city of Stockton has been a poster child for the Great Recession, and now, with layoffs hitting the police department for the second time in two years, the cops have announced they don't have enough manpower to staff their dope squad.