Thursday, January 24, 2008

The War on Drugs and How it Has Affected Our Economy

Dr. Michael Babula, a candidate for Maryland’s fourth congressional district, holds many strong opinions. One issue I agree with is that drugs, when illegal, do a lot of harm to the U.S. economy. I think his idea to end the prohibition on drugs would have positive results and would help our economy and our society as well.
One thing many people do not realize is how much of our money is spent when drugs are illegal. On his website, Dr. Babula claims that the United States spends approximately $600 per second on the war on drugs. Not only that, but it cost a total of $15.2 billion to lock up all of the nonviolent state and federal prisoners in 1998. That cost taxpayers a total of $24 billion to incarcerate the nonviolent prisoners. These numbers do not include the hidden costs like construction, operation of the prisons, and debt services on prison bonds which drive the cost it takes to incarcerate a prisoner from $20,224 to around $40,000. (America’s One Million Nonviolent Prisoners) If the jailing of all of these prisoners actually stopped people from doing drugs than all the money might be worth it, however the drug problem still exists. The nation also spends even more on the anti-drug campaigns. John Walters, the head of the U.S. Office of National Drug Control Policy, said the governments anti-drug campaign failed in producing results, and has even encouraged more teenagers to try marijuana, costing taxpayers $929 million by 2002. (http://www.jointogether.org/news/headlines/inthenews/2002/walters-says-anti-drug-ad-a.html) All of our money is going towards a weak attempt to stop a strong epidemic.
Despite all of the money that the nation is spending on the war on drugs, it is also missing out on gaining money. Governments would gain a lot of money if they were able to tax the drug trade because it is such a huge business. “According to researchers John Gettman and Paul Armentano, "Marijuana ranked fourth out of all United States cash crops in 1997, amassing a greater value to farmers than tobacco, wheat, or cotton. In several states--Alabama, California, Connecticut, Hawaii, Kentucky, Maine, Rhode Island, Tennessee, Virginia, and West Virginia--marijuana stands as the largest revenue producing crop. Marijuana ranks as one of the top five cash crops in 29 others. Nationally, marijuana growers reaped an estimated $15.1 billion on the wholesale market. Only corn, soybeans, and hay rank as more profitable cash crops." (Drug Economies of the Americas) Drugs have become a large part of our economy, and we could use it to improve our economy.
The reason why this change has not taken place is because people think that the consequences are worse then the gains. Dr. Babula explains that drugs are an inelastic product, and therefore an increase in usage will not occur because a change in price is not relevant to users. Donna Edwards and Albert Wynn, who are also running for congress, have failed to mention their stand on the war on drugs in relation to the economy.






Works Cited
Irwin et al. (2000). America's one million nonviolent prisoners. Social Justice. 27(2), 135-47.
Drug economies of the Americas. (2002). NACLA Report on the Americas. 36(2).

Join Together. Walters Says Anti-Drug Ad Campaign a Failure. May 15, 2002. January 19, 2008. <>

Michael Babula for Congress. Crime Rates and Legalization of Drugs. January 19, 2008.