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renatoferreiradasilva · 4 months ago
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The Convergence of Economic Interests and Drug Trafficking: Lessons from Prohibition and the U.S. War on Drugs
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The prohibition of drugs in the United States, a policy widely contested for its social and economic consequences, finds historical parallels in the Prohibition era (1920–1933). During Prohibition, the production, distribution, and sale of alcoholic beverages were banned in the U.S. Like today’s drug prohibition, Prohibition was driven by moral and public health arguments but resulted in a parallel economy of illegal activities and an increase in organized crime. This economic history essay aims to draw parallels between Prohibition and current drug policy, highlighting how prohibition simultaneously benefits large corporations, organized crime, and ultimately shapes global geopolitics and economic structures.
1. Prohibition: A Moratorium and the Growth of the Black Market
Prohibition in the United States was enforced by the passage of the 18th Amendment and the creation of the Volstead Act. Its declared purpose was to improve public health, reduce crime, and boost societal morality by eliminating alcohol consumption. However, the economic effect of Prohibition was the opposite of what its proponents envisioned. Far from eradicating alcohol, the ban fostered the creation of a lucrative black market, managed by mafia groups that saw opportunities to enrich themselves through the illegal sale of alcohol.
Entrepreneurs of the illegal market, such as Al Capone, quickly amassed fortunes by exploiting the continuous demand for alcohol, demonstrating that the criminalization of widely demanded products tends to create highly profitable underground markets. The rise of organized crime, the bribery of politicians and law enforcement, and the violence associated with territorial control among gangs were some of the most visible consequences. The black market became an essential part of the parallel economy, moving significant amounts of money and directly influencing politics.
Similarly, the international drug trade that flourished under drug prohibition has replicated many patterns established during Prohibition. Today, drug cartels operate in ways comparable to the organized crime bosses of the 1920s, profiting immensely from prohibition while perpetuating networks of corruption, violence, and political instability.
2. The Dual Benefit: Corporations and Organized Crime
During Prohibition, large corporations were not directly involved in the illegal alcohol trade, but other sectors of the economy benefited from the ban. A notable example was the pharmaceutical industry, which retained exclusive access to alcohol for medicinal purposes. Medicinal alcohol, legalized under medical supervision, was widely sold in pharmacies and distributed by doctors who prescribed "alcohol treatments" for a range of ailments.
Thus, the pharmaceutical industry found a way to profit from Prohibition by controlling access to a still-demanded substance that was now heavily regulated. The monopoly these companies held on medicinal alcohol offered them a chance to profit through exclusivity at a time when recreational alcohol consumption was outlawed.
This model is clearly reflected in today’s drug policy. The prohibition of recreational drugs, such as cannabis or even cocaine derivatives, provides large pharmaceutical corporations with a monopoly over controlled substances that might otherwise be produced more cheaply and widely. Through patents and stringent regulatory processes, these companies dominate the market for legal treatments for pain, anxiety, and other conditions, often utilizing opioid derivatives and anxiolytics that are sometimes more dangerous and addictive than the recreational drugs targeted by legislation.
This convergence of interests—between corporations that benefit from prohibition and criminal organizations that profit from the black market—creates a complex economic structure resistant to reform, as both sides have economic incentives to maintain the status quo.
3. Drug Trafficking and the Control of the Drug Market
In the absence of government regulation and competition in a legal market, international drug trafficking emerged as the primary supplier of recreational drugs to the United States and other global markets. Prohibition creates artificial barriers that drive up the prices of these substances, generating disproportionately high profit margins for those who control supply.
In the case of cocaine trafficking, for instance, growing coca in Latin American countries such as Colombia and Peru is extremely inexpensive. However, prohibition and the risks associated with international trafficking inflate the price of cocaine in consumer markets like the U.S. and Europe. Just like the crime bosses during Prohibition, drug cartel leaders have become powerful figures, controlling territories and wielding influence over local politicians and law enforcement.
The economic model of drug trafficking is, therefore, similar to that of organized crime during Prohibition, with a lucrative parallel economy based on illegality. Violence and territorial control are essential to securing market access and ensuring the continuity of illegal operations. Moreover, just like in the 1920s, political corruption and the complicity of local authorities are key elements that facilitate the persistence of these activities.
4. Trump, Drug Prohibition, and Economic Interests
Amidst this scenario, Donald Trump’s position against the legalization of drugs is a clear example of how the prohibition economy benefits both large corporations and criminal organizations. Although Trump has adopted tough rhetoric on combating drug trafficking and illegal drugs, his resistance to legalization or decriminalization policies reflects deeper economic interests.
On the one hand, Trump’s stance protects the profits of large pharmaceutical corporations, which rely on the exclusivity of controlled substances. The legalization of drugs like cannabis could threaten these profits by opening the market to new competitors who might provide natural, more affordable alternatives. On the other hand, by keeping the black market intact, his "law and order" policy ensures that drug trafficking profits remain high, much like the profits of organized crime during Prohibition.
The economic logic behind these policies suggests a "double game" in which the interests of different groups are protected at the expense of a more effective and socially beneficial solution. Drug law reform, focusing on legalization and regulation, has the potential to drastically reduce drug-related violence, dismantle corruption networks, and open the market to new businesses that could provide safer and more affordable alternatives for consumers.
Conclusion
Prohibition and the current drug ban share many similarities in terms of their economic and social consequences. Both periods witnessed the rise of lucrative black markets, the strengthening of organized crime, and the protection of large corporate interests that control legal markets. Prohibition, in both cases, creates artificial barriers that benefit those who hold monopolies over controlled substances, whether in the pharmaceutical industry or in drug trafficking.
Donald Trump’s stance against drug legalization, far from being a mere reflection of moral or public health concerns, can be seen as a manifestation of broader economic interests. Both large corporations and international drug traffickers benefit from maintaining prohibition, creating a vicious cycle that resists reform and perpetuates a system of violence, corruption, and inequality.
The economic history of Prohibition offers valuable lessons for today’s debate on drug legalization. Just as the repeal of Prohibition reduced the power of organized crime and created a regulated market for alcohol, drug policy reform has the potential to weaken drug cartels and create a legal market that benefits society as a whole.
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uinterview · 11 months ago
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Oregon lawmakers are on the cusp of revisiting the state’s drug decriminalization measure. 
Full Story Here: https://uinterview.com/news/oregon-lawmakers-move-to-reverse-drug-decriminalization-laws-amid-fentanyl-crisis/
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nature420world · 2 years ago
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The History of Marijuana Prohibition: Unraveling the Reasons Behind its Illegality
Marijuana, a plant with a long history of medicinal and recreational use, has faced a complex journey towards its current legal status. Understanding the reasons behind its prohibition sheds light on the socio-political factors that influenced drug policies. Let's explore the origins of marijuana's illegalization and uncover some important facts.
Facts about Marijuana Prohibition:
The criminalization of marijuana in the United States began in the early 20th century, fueled by racial prejudice and political motivations.
The Marihuana Tax Act of 1937 was the first federal law to restrict the use and distribution of marijuana, effectively making it illegal.
The "Reefer Madness" era of the 1930s depicted marijuana as a dangerous drug, leading to exaggerated claims about its effects on users.
The War on Drugs initiated in the 1970s escalated marijuana enforcement efforts and contributed to its continued illegal status.
Despite growing evidence of marijuana's medicinal benefits, it remained classified as a Schedule I drug under the Controlled Substances Act.
Read the full article to delve deeper into the fascinating history of marijuana prohibition and its implications on society.
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nycannabistimes · 2 years ago
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#Repost @cannabispharmd ・・・ In an 18 year period, over 1 BILLION was spent by the National Institute on Drug Abuse (NIDA) to research cannabis...but only 12.5 million was spent by the department of defense on exploring how cannabis might help veterans. Pitiful! Although things are finally changing here in the 2020's, I am concerned about the ongoing bias towards cannabis within the US federal government and their research policies. Since 1970, cannabis has been classified as a Schedule I drug by the Drug Enforcement Administration (DEA), which means that it is deemed to have no medical use and a high potential for abuse. This classification has severely restricted research on cannabis, making it difficult for scientists to conduct studies on its potential benefits and risks. Moreover, the federal government has historically funded research that focuses primarily on the potential harms of cannabis, rather than its potential therapeutic benefits. This bias has hindered progress in understanding the potential medical applications of cannabis and has left patients and doctors without the information they need to make informed decisions. While some states have legalized cannabis for medical and/or recreational use, this patchwork of laws has created a confusing and inconsistent regulatory landscape. The lack of federal research has made it difficult for these states to make informed decisions about regulating the production and sale of cannabis products and have also made researching cannabis challenging. It's time for the federal government to remove the barriers to research on cannabis and to promote a more balanced approach to understanding its potential benefits, not just the risks! #cannabisscience #nida #drugpolicy Source: Purcell JM, Passley TM, Leheste JR. The cannabidiol and marijuana research expansion act: Promotion of scientific knowledge to prevent a national health crisis. Lancet Reg Health Am. 2022;14:100325. Published 2022 Jul 13. doi:10.1016/j.lana.2022.100325 (at Alto Manhattan) https://www.instagram.com/p/Co_VfWVsOEk/?igshid=NGJjMDIxMWI=
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neurontheory · 4 years ago
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I’ve always been a firm supporter of drug decriminalisation policies as they’re directly linked to fewer overdoses and safer drug use — Portugal 🇵🇹 offers us a great example at how successful these reforms have been . . . . . . . . #drug #drugpolicy #drugfree #drugaddiction #health #healthpolicy #science #facts #medfluencer #medicine #addiction https://www.instagram.com/p/CPD-xrenlSW/?utm_medium=tumblr
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ograzorgrown13 · 5 years ago
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#Repost @drugpolicyalliance with @get_repost ・・・ 🔥BREAKING NEWS🔥 The House Judiciary Committee just voted in favor of send the #MOREAct to the House Floor! #WeWantMORE #drugpolicy #cannabis #marijuana #nomoredrugwar #MOREAct #WednesdayWisdom https://www.instagram.com/p/B5GKQY-hQ_s/?igshid=1pa9aifsf76k2
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harmreduction · 5 years ago
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Looking for a way to help end the overdose crisis, but don’t have time to volunteer? Become a Harm Reduction Champion!
Like harm reduction, all are welcome. All contributions, no matter how small, help harm reduction thrive. Sign up and donate $5 per month, and we'll send you a brand-new Harm Reduction Champions T-shirt.
Not Ready to Give Monthly? Make a one-time donation here. 
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holysmokescrafts · 5 years ago
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America’s Neighbors Apply Peer Pressure on U.S. Cannabis Policy While Canada works out the details for its federal cannabis legalization program, Mexico’s knocking at the door. The pressure is ramping for America to answer. When it comes to marijuana, the drug war is quickly turning into a rout, with prohibition in broad retreat. Look no further than the surrender of the America’s closest geographical neighbors, Mexico and Canada. Both have opened the doors to recreational cannabis in the past year — and it’s already having a downstream impact on the U.S. The most obvious impact is that it’s getting harder for federal officials to combat the case for legalizing recreational use. Canada was the first G7 country to legalize the plant, opening up its market on October 17, 2018, and the sky hasn’t fallen in since. Other European countries are also likely to follow suit within the next decade, according to Marijuana Policy Project’s Deputy Director Matt Schweich. “There’s a steadily growing sense among global leaders that marijuana prohibition is a misguided policy,” Schweich says. “Canada and Mexico moving forward certainly increases the pressure on the United States.” Already 11 states have legalized recreational use, with the state of Illinois being the latest. It was the second to do so by legislative action, following Vermont. Previously it had taken ballot initiatives to drag legislators toward the predominant public view. Then there’s the odd fact that almost half the states that have changed their cannabis laws share a border with Canada (Michigan, Alaska, Washington, Vermont and Maine). Because their actions predated Canada’s move, it’s possible to consider Canada originally bowed to pressure from U.S. states, but it appears the pendulum could now swing back. #america #drugpolicy #neighbors #canada #federal #mexico #michigan #alaska #washington #vermont #maine #legalization #reform #holysmokestv #holysmokes #holysmokescrafts #oneman #solo #cannabis #medicalcannabis #states #usa #cbd #thc #yolo #420 #420daily #change #fight #youfighttolive (at Los Angeles, California) https://www.instagram.com/p/B0bTI92BNW-/?igshid=qmcagv398kj9
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nature420world · 2 years ago
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The Cost of Marijuana Prohibition: Examining Criminal Justice Reform
Disproportionate Incarceration: The criminalization of marijuana has led to a significant number of individuals, particularly from marginalized communities, being incarcerated for non-violent marijuana offenses. This has contributed to the issue of mass incarceration and strained the criminal justice system.
Economic Implications: Enforcing marijuana prohibition incurs substantial costs, including law enforcement resources, court proceedings, and incarceration expenses. Legalizing and regulating marijuana can create new revenue streams through taxation, job creation, and economic growth.
Racial Disparities: Marijuana prohibition has disproportionately affected minority communities, leading to racial disparities in arrest and conviction rates. Criminal justice reform aims to address these disparities and promote equity by reevaluating marijuana policies and implementing fair and just alternatives.
To read the full article and delve deeper into the cost of marijuana prohibition and the need for criminal justice reform, click the following link
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totalvisionenterprise · 6 years ago
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In full support of @ocasio2018 And Her Message!!👊🏿👊🏿✊🏿✊🏿 The communities impacted by the War on Drugs should receive investments from the economic benefits of legalization - not those who enrich themselves off for-profit incarceration. . 📷📽️🎥📹: @drugpolicyalliance #drugpolicyreform #drugpolicy #toomanyprisoners #prisonreform #cannabisbusiness #marijuanaconsulting #cannabisconsulting #realfacts #fightforyourrights #newlegistlature #newcannabislaws #cannabisreform https://www.instagram.com/p/BviLWgwgfRu/?utm_source=ig_tumblr_share&igshid=4s9re5rsg43z
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lois201891 · 7 years ago
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I've always been apprehensive that our president was just just blowing smoke when he spoke of Addiction & his "gameplan" to combat it's deadly grip. I believe it's frustratingly clear now he isn't concerned & was bullshiting about his concerns during his election campaign🚫
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harmreduction · 6 years ago
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Today is International Women's Day & March is Women's History Month. 
To commemorate, join Harm Reduction Coalition at our NY office on March 21st at 6:00pm EDT for Women x Harm Reduction: a conversation on gender-sensitive harm reduction, featuring Dr. Kim Sue, Marilyn Reyes, Dr. Sheila Vakharia, & Joyce Rivera. The discussion will be moderated by Nancy Nwaifejokwu. 
RSVP: https://womenxharmreduction.splashthat.com/    
Not in New York? The event will be live streamed on our FB page. 
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randomnessofme · 7 years ago
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#Boehner 's drug policies supported incarceration of drug sellers for yrs. Now he's on the billion dollar industry band wagon while Tyrone and the other millions of black men #incarcerated for #marijuanasales will rot in jail. Way to go John. Structural and institutional #racism at its finest. #Drugpolicy to make the rich richer. https://t.co/Tgn0BeJJKphttps://www.vox.com/policy-and-politics/2018/4/11/17223964/john-boehner-marijuana-legalization-acreage
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4evahaka · 7 years ago
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#TaylorWeyeneth had NO experience in #DrugPolicy or any real job experience when he was appointed to a SENIOR ROLE in the #WhiteHouse's #DrugPolicy office. The #24YearOld is resigning at the end of the month after the #WashingtonPost reported that he had fudged his resume, and included contradicting dates for various jobs. Turns out he also never finished his master’s program and had been fired from a New York law firm for not showing up for work
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drugusersbible · 7 years ago
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"People are dying because of ignorance.   They are dying because unremitting propaganda is denying them essential safety information. They are dying because legislators and the media are censoring the science, and are ruthlessly pushing an ideologicalagenda instead.   They are dying because the first casualty of war is truth, and the war on drugs is no different.”
It doesn't have to be like this.
The Honest Drug Book is a step to counter this destructive situation. Drug by drug it presents the hidden truth: the facts the media do not report.
www.DrugUsersBible.com
Prohibition kills, education saves lives.
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