Democracy Lab Democracy Lab Democracy Lab Democracy Lab Democracy Lab Democracy Lab

Biden to Latin America: Drop Dead

The laws of economics show why the United States has little chance of victory in the war on drugs.

BY PETER PASSELL | MARCH 22, 2012

The real headline in The New York Times was more measured: "U.S. Remains Opposed to Drug Legalization, Biden Tells Region." But the story, juxtaposing Washington's intransigence with the desperation of Latin American leaders sucked into a war with the drug cartels they aren't winning, was a sobering reminder of the parochialism of U.S. drug policy and its impact on other countries.

Vice President Joe Biden, who did manage to couch his brush-off of Latin American concerns in diplomatic language, is certainly right that legalization would be no panacea. What no U.S. politician seems willing to acknowledge, though, is that supply-side fixes to drug abuse have been disastrous to the economies and civil societies of supplying countries because they make the illicit drug business irresistibly profitable. The big question is not whether, but when, Latin Americans will have the temerity to challenge the United States' malign neglect.    

A brief detour for some basic economics. If the sole goal of drug policy is to reduce consumption, one can get from here to there either by restricting supply or by convincing users to forego the experience. Both approaches can, in theory, get the job done -- to a point. But there is one (well, more than one, but let's keep this simple) big difference between them: Restricting supply raises prices, while reducing demand lowers prices.

Now, suppression of supply -- which, by treaty, the United States and most other countries strive for -- need not raise the profitability of producing and selling drugs, provided the restrictions also substantially raise the drug dealer's expenses. For example, the imposition of the death penalty for drug trafficking in a country with an efficient, honest police force (like Singapore) might be expected to raise the expected "cost" of trafficking so much that few people would consider it profitable.

But this apparently isn't the case in the United States, the globe's premier consuming country for most drugs (hard and soft) -- or for the major producing and entrepôt countries that supply the United States, Asia and Europe. Indeed, the illicit drug trade is so profitable in these places that it has given organized crime the power to undermine civil society in supplying countries.

Colombia, of course, was once the poster country for the collateral damage caused by the effort to suppress drugs. Having fed organized crime and related political terrorism there for decades, the production of cocaine was finally brought under control by a U.S.-supported military effort that cost thousands of lives and did significant harm to Colombia's legal economy that will take years to overcome. But wars on drug suppliers aren't won - they just move around.

Julio Cesar Aguilar/AFP/Getty Images

 

Peter Passell, the Economics Editor of Democracy Lab, is a Senior Fellow at the Milken Institute.

AALLISON

2:59 PM ET

March 22, 2012

Biden to Latin America: Drop Dead

Poppycock!
The lack of comprehension of the reality situation displayed by, "If the sole goal of drug policy is to reduce consumption, one can get from here to there either by restricting supply or by convincing users to forego the experience."

The USA learned absolutely nothing from Prohibition!! The reason to legalize drugs is to transfer control of distribution, and the resulting revenue, from gangsters to government.

 

JOHN S. BOONE

9:39 AM ET

March 23, 2012

War on drugs

Up here in Canada the Conservative Harper Government seems to think that harsher penalties is the answer. They have begun building super prisons to fill with those convicted of drug offenses among other "crimes" . They want mandatory minimum sentences and have reduced the number of pot plants a person that require a charge that will result in a mandatory prison term to 4 plants. So some kid who wants to grow some pot will face serious prison time if they are caught with 4 plants no matter how big the plants are. The judges will have no recourse but to hand down prison sentences.

On the bright side , there is the fact that this will help alleviate youth unemployment and homelessness.

 

DIANIMAL

12:05 PM ET

March 23, 2012

Let the people get high

There is no logical basis for denying humans (other than oneself) access to mind / mood altering substances. It's absurd to criminalize plant life and if "danger" is the reason for banning things then statistics of actual casualties should govern such laws.

If this were the case then snowboarding would be illegal and cannabis not.

The war on (some people who use some) drugs is doomed to failure because it is a classic example of government attempting to intervene in matters that are outside its remit.

The paternalism of a governing body telling its citizens what intoxicants they may and may not consume is so blatantly ridiculous that I sometimes have trouble understanding why it's not obvious to more people.

 

CASANDRA PROHONIC

4:35 AM ET

April 20, 2012

U.S. Remains Opposed to Drug Legalization

I know that, Mr. Biden, beginning a two-day trip to Mexico and Honduras ahead of a regional summit meeting next month, told reporters that he welcomed a debate over legalization, but then he knocked down the arguments in favor of it.He said he sympathized with Latin American leaders who are frustrated over violence tied to the drug trade and with the consumption habits in its biggest market, the United States. But the few potential benefits from legalization, like a smaller prison population, would be offset by problems, including a costly bureaucracy to regulate the drugs and new addicts, Mr. Biden said. “I think it warrants a discussion. It is totally legitimate,” he said. “And the reason it warrants a discussion is, on examination you realize there are more problems with legalization than with nonlegalization.”Mr. Biden made his comments shortly after meeting with President Felipe Calderón of Mexico, who has said that “market alternatives” — a phrase that many have taken as code for legalization — should be considered by the United States if it could control the amount of drugs its citizens consume.