A $200 illegal drug transaction can cost society $100,000 in prison costs
And this is why the war on drugs is great for corporations who run prisons:
Amelioration of today’s drug problem requires Americans to understand the significance of the 80-20 ratio. Twenty percent of American drinkers consume 80 percent of the alcohol sold here. The same 80-20 split obtains among users of illicit drugs.
About 3 million people — less than 1 percent of America’s population — consume 80 percent of illegal hard drugs. Drug-trafficking organizations can be most efficiently injured by changing the behavior of the 20 percent of heavy users, and we are learning how to do so. Reducing consumption by the 80 percent of casual users will not substantially reduce the northward flow of drugs or the southward flow of money.
Consider current policy concerning the only addictive intoxicant currently available as a consumer good — alcohol. America’s alcohol industry, which is as dependent on the 20 percent of heavy drinkers as they are on alcohol, markets its products aggressively and effectively. Because marketing can drive consumption, America’s distillers, brewers and vintners spend $6 billion on advertising and promoting their products. Americans’ experience with marketing’s power inclines them to favor prohibition and enforcement over legalization and marketing of drugs.
But this choice has consequences: More Americans are imprisoned for drug offenses or drug-related probation and parole violations than for property crimes. And although America spends five times more jailing drug dealers than it did 30 years ago, the prices of cocaine and heroin are 80 to 90 percent lower than 30 years ago.
In “Drugs and Drug Policy: What Everyone Needs to Know,” policy analysts Mark Kleiman, Jonathan Caulkins and Angela Hawken argue that imprisoning low-ranking street-corner dealers is pointless: A $200 transaction can cost society $100,000 for a three-year sentence. And imprisoning large numbers of dealers produces an army of people who, emerging from prison with blighted employment prospects, can only deal drugs. Which is why, although a few years ago Washington, D.C., dealers earned an average of $30 an hour, today they earn less than the federal minimum wage ($7.25).