Up And Down

The Drug Czar says says that the current cocaine price spike shows progress in the War On Druggies. NPR reports on the story.

For the past few months, the federal government has been celebrating the fact that U.S. cities are experiencing "an unprecedented cocaine shortage" due to increased law enforcement in the southwestern United States and Mexico.
Great news for prohibitionists. They are finally starting to defeat the drug market. Something I said they would never do. I guess I'll have a big dish of crow.

But wait. NPR did some fact checking. What did they find?

But fact-checking by NPR reveals that while there are indeed spot shortages of cocaine, they are neither nationwide nor unprecedented. And the scarcity may have unintended consequences.

The price of cocaine is one of the main ways the government tallies the score in its war on drugs. The reasoning is that if prices go up, it means that agents are winning -- they're squeezing the supply. For the past three months, the federal government has been reporting that its counter-drug strategy has created an unprecedented nationwide cocaine shortage.

I think we are going to need some details before we buy into some anecdotes by NPR.
Walters said reports indicate that these interdictions have choked the cocaine supply in 37 cities across the country. The list included 15 major cities like Los Angeles, San Francisco, Minneapolis, Milwaukee and Grand Rapids, Mich., Walters said.

NPR contacted the police departments in each of those 37 cities to find out what narcotics commanders had to say about the reported cocaine shortage.

The results suggest how difficult it is for law enforcement to create any long-term disruption in retail sales in America, which is the largest cocaine market in the world.

And they tend to confirm long-established trends: that price spikes are transitory, and that over time, dealers find other distribution routes, while users may find other drugs.

Ten of the 37 cities confirmed that the cocaine scarcity is real. Among them were the largest cocaine markets in the nation, such as New York, Los Angeles, Atlanta and San Francisco.

Lt. Daniel Simfer, commander of the vice/narcotics unit in the St. Louis Police Department, said, "In the last six months it has become less available than it was at the beginning of the year. The price has increased accordingly probably by about a third."

Four cities declined to respond to questions about the local cocaine supply; five said there was simply no shortage.

The question brought laughter from Sgt. Roger Johnson of the Detroit Police Department.

"No, we don't have a problem finding it at all," Johnson said.

In Pittsburgh, Commander Sheryl Doubt of the Pittsburgh Police Department said, "I spoke to my detectives out there in the streets making buys, and we all kind of agreed that if there's a shortage here in Pittsburgh, we are not aware of it and don't find that necessarily to be true."

The Drug Czar lying to us? How can that be? He is an honorable man and a public servant. I mean if you can't trust public servants what is he world coming to? A former budget control director in the Czar's office tells us.
John Carnevale is a former budget director in the drug-control office who served under four former drug czars. He says the office had the Rand Corporation analyze long-term cocaine price trends.

Of the findings, Carnevale said, "One, the long-term trend adjusted for purity has been one of decline. It just keeps coming down and coming down. Two, there's been occasional moments where we've seen spikes in cocaine prices, and they may last three months, four months, five months -- but eventually the trend continues to decline."

And fleeting price spikes, Carnevale said, did not meaningfully affect demand -- another point where he differs with the drug czar.

So we have a short term upward spike in a long term downward trend.

Well the Drug Czar tells us that after examining the bodily fluids of hundreds of thousands of Americans he has proof of progress that can't be denied.

Further proof of the cocaine shortage, Walters says, is that the nation's largest workplace drug-testing company has observed a 16 percent decline in positive cocaine drug tests during the first half of 2007.

But in an interview, a scientist from that company, Quest Diagnostics, said that during the same period, the company also noticed a nearly 7 percent uptick in methamphetamine detection.

That phenomenon shows the nature of addiction, several police officials said. To the extent there is, or was, a cocaine shortage, they have seen regular users turn to meth, heroin, prescription drugs, and high-potency marijuana. In other words, enforcement had not appeared to curtail demand -- one of the chief aims of the war on drugs.

"The truth is, we see addicts getting drugs even in the worst times," said Sgt. Sutherland of the Washington, D.C., police. "When it's really hard to get it, they'll do just about anything to get some kind of drugs."

So drug users are switching from coke to meth and heroin. I'd call that real progress. For sure.

The USA Today has noted another positive aspect of the crackdown.

In Cleveland, police noted a contraction in drug markets in January. Homicides are up as local drug organizations vie for the shrinking cocaine supply, says Mayor Frank Jackson, who lauds a six-city, federally led task force for cracking down on local traffickers.
Isn't that special. Fewer drugs more murders. I'm sure that city life has improved because of it.

Mayor Jackson had some further comments on the effectiveness of the crack down.

"Interdiction isn't the cure-all. The police cannot solve this problem. It's one leg on the stool."
There is more than enough evidence that the stool is beginning to stink. It is well past flushing time. The unfortunate thing is that there is a lot of money supporting this stool. In other words the toilet is backed up and the overflow is making the whole house stink. Of course this is America and we are getting all the house we paid for.

Cross Posted at Power and Control

posted by Simon on 12.29.07 at 04:39 AM





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Comments

The price of a commodity, independent of context, doesn't really tell you much. How much is being traded? How quickly? What about considerations such as quality and purity?

I'm no fan of the War on Drugs, either. I think it's done quite a lot of harm to the United States, as well as to the South American countries at the other end of the chain. But let's be intellectually honest: it's very, very difficult to gather enough hard facts about drug sales and usage to have a good sense for whether it's increasing or declining...and even harder to know whether law enforcement is a significant actor on the trend.

Remember that law enforcement was a significant intensifier of bootlegging during the Prohibition years...but we only found out about it well afterward!

Francis W. Porretto   ·  December 29, 2007 07:16 AM

I often point out that all the reasoning behind the drug war can equally be applied to alcohol. The inevitable, self-satisfied reply is that we tried that and it didn't work. After all, my interlocutor usually likes to take a drink; how dare anyone interfere with his individual liberty. How wise we were, he effervesces, to repeal that monster.

I can't see that the experience of Prohibition taught us a damned thing.

Brett   ·  December 29, 2007 10:20 AM

To say that a spike in drug prices is simply because of the great job our DEA and Border Patrol are doing is at best a real simplification. The two things can be related but this is a multi variable equation. Looking at it from only 2 variables (supply and demand) is not the full picture.

ryan   ·  December 30, 2007 02:36 AM

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