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Dollar vs. Dollar: US Consumers Battle US Taxpayers in Global Drug War

By Balzafire, Nov 27, 2010 | |
  1. Balzafire
    Although the reporting has improved in recent years, US media coverage of the “war on drugs” continues to ignore the economic realities of just who is fighting who in the conflict. The drug war is best understood as a battle of dollar versus dollar — a bloody war between the dollars of US taxpayers and the dollars of US consumers.

    On one side, Americans pay large sums of money to vast networks of people who grow, process, ship, smuggle, defend, and deliver drugs to the US. On the other side, Americans also pay another network of people vast amounts to find, fight, arrest, and kill those whom we hire to provide the drugs to begin with.

    Few tend to think of US buyers of illicit drugs as “consumers.” To use that word is to seemingly legitimize illicit drug consumption as a form of economic activity. But all activities that involve trading currency for a product — and plenty of activities that don’t — are inherently economic in nature. A 2006 Congressional Research Service report estimated that Americans spend “over $60 billion” annually on illicit drugs. Andres Martinez of the New America Foundation told Newsweek late last year that the number was some $65 billion.

    These billions are the commerce of a wealthy First World nation. Sure, America is in the midst of an economic downturn. And yes, the outlook is glum. But even as many Americans face unemployment and foreclosure, it remains true that life for average Mexicans and others in developing nations is far less prosperous. As a result, the money used by Americans to buy illicit drugs has massive buying power once converted into pesos and other currencies of poorer economies.

    These US pesos pay the salaries of drug traffickers, peasant growers, and corrupted government officials. The US pesos even come back into the American economy, as drug traffickers spend a portion of their profits buying American weapons that they smuggle back into Mexico.

    Meanwhile, there is the other side of the equation: a massive flow of American tax dollars that is spent fighting the very people who are paid by Americans to provide illicit drugs. Some of those tax dollars go directly into US military efforts at interdiction. Other dollars fund anti-corruption and anti-drug units in Mexico and elsewhere. Additional sums of money make their way south in the forms of military training and hardware.

    In 2009, almost $6 billion had been authorized by Congress for the Pentagon, State Department, and Department of Homeland Security to spend on programs “to disrupt the flow of illicit drugs into the United States, and provide support to partner nations.” This includes the hundreds of millions in aid to countries ranging from Mexico to Colombia. Mexico alone was promised some $1 billion in multi-year aid for its battles.

    Thus, all of Latin America is essentially a proxy battleground between US taxpayers and US drug consumers. While there are certainly many Latin American drug consumers, US drug consumers dwarf their Latin American peers in size and scope. According to the U.N.’s 2009 World Drug Report, for every one cocaine user in South America, there are three in North America. The US “is still the world’s largest cocaine market.”

    Today, some governments in Latin America are tired of the scars they bear as a result of this battle. Many have considered narrowing their involvement in the drug war, notably without protest from the Obama Administration. At the start of this year, Reuters reported that Argentina, Brazil, Chile, and Ecuador were “relaxing penalties for possession and personal use of small amounts of narcotics.” As reporter Luis Andres Henao put it, they were “convinced that the four-decade-old, US-led war on drugs has failed.”

    This trend reveals that many Latin American nations are becoming less willing to play host to the outsourced drug war between American taxpayers and American consumers. So long as US dollars finance both sides of this bloody international battle, it makes little difference what is done anywhere else.

    by Sanjeev Bery
    November 25, 2010


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