Expanding Perceptions Of Public Health
Users are also important in the supply side of heroin and cocaine markets for another reason. Facing limited opportunities in legal labor markets and already in contact with drug-selling networks, users provide a ready low-wage labor pool for illegal markets. Thus, demand-side measures, such as expanded treatment, may raise distribution costs for drugs because it takes users out of the drug-selling labor force.
Understanding the Drug Black Market
Major cartels saw growth due to a prominent set culture of Mexican society that created the means for drug capital. One of the sites of origin for drug trafficking within Mexico, was the state of Michoacán. Industrialization of rural areas of Mexico facilitated a greater distribution of drugs, expanding the drug market into different provinces.[79] Once towns became industrialized, cartels such as the Sinaloa Cartel started to form and expand. The proliferation of drug cartel culture largely stemmed from the ranchero culture seen in Michoacán. Ranchero culture values the individual as opposed to the society as a whole.[79] This culture fostered the drug culture of valuing the family that is formed within the cartel.
While some people may refer to the gray market, when economists talk about the impact of the black market, they are included transactions like marijuana from a drug dealer in their analyses. The black market is the ‘market’ where goods and services are sold in a way that is illegal or for goods and services that are illegal. Obviously, it isn’t a market in the physical sense of the word, but rather, a market meaning the collective transactions that take place between buyers and sellers. From the black market meaning, it is evident that grey markets are slightly different from black markets in that they do not deal with illegal goods and are not considered illicit markets. In addition, grey markets do not involve tax evasion like black markets.
The drug black market is an illicit trade that involves the production, distribution, and sale of illegal drugs. This underground economy thrives due to various factors, including demand, inadequate regulation, and socio-economic conditions.
The United Nations estimates that current drug interdictionefforts intercept approximately 13% of heroin shipments and 28 to 40% ofcocaine shipments. It was because of the failure to stem the flow of productthat US officials started turning to tracking and seizing the money theresulted from drug sales. In the last decade federal and state law enforcementhave seized over $8 billion in drug cash and assets. The street price of prescription drugs as well as illicit drugs is captured through a publicly-accessible website The site allows for anonymous submission of street prices paid for specific prescription and illicit drugs.
Key Characteristics of the Drug Black Market
Some of the defining features of the drug black market include:
- Illegality: All activities related to the drug black market are illegal, encompassing cultivation, manufacturing, distribution, and sale.
- High Profit Margins: Dealers often earn substantial profits due to the high demand for illicit drugs.
- Risky Environment: Participants face significant risks, including legal repercussions, violence, and exploitation.
- Regulatory Avoidance: The black market flourishes in regions where drug policies are ineffective, either due to corruption or lack of enforcement.
Yet even when compared with those market factors, unknown quality variation is likely greater for illegal drugs. One reason is that, even after consumption, the quality of cocaine or heroin can be rated only imperfectly; given substantial variation over time for a given individual in the experience provided by a given quantity of cocaine, heroin, or other substances. For example, the intensity of a drug experience is influenced by the time since last use, the expectations of the user, and circumstances of use, summarized in the phrase, “drug, set, and setting” (Zinberg, 1984).
Reasons for the Existence of the Drug Black Market
The persistence of the drug black market can be attributed to multiple factors:
- Demand for Illegal Drugs: Many individuals seek drugs that are not available legally, driving the market.
- Social and Economic Conditions: Poverty, unemployment, and social instability contribute to the drug trade as a means of income.
- Low Sentencing for Users: In many regions, penalties for drug users are less severe than those for traffickers, leading to continued participation in the market.
- Cultural Acceptance: In some communities, drug use is normalized, facilitating the growth of the drug black market.
Senator Manchin has also announced plans to introduce new legislation in the Senate to crack down on so-called “pill mills,” where people can go to get powerful prescription drugs that they do not use for medical reasons. US social media platforms, such as Facebook and Twitter, have also struggled to stop illicit listings for opioids. As opioid overdose deaths surged past 400,000 in the US, online trafficking networks, many of which sourced chemicals in China, made it easier to buy black market drugs. A year after the black market website Silk Road was shuttered by the FBI, many new sites selling illegal drugs have appeared.
Ecstasy (MDMA) is the most widely sold illicit drug on these sites, according to a survey. Crowdsourced data provide a valid estimate of the street price of diverted prescription opioids. The (ostensibly free) black market was able to accurately predict the relative pharmacologic potency of opioid molecules.
Impact of the Drug Black Market
The implications of the drug black market are profound and multifaceted:
- OxyContin’s street price skyrocketed, and by 2012, only 12.8 percent of Americans were choosing to abuse OxyContin, down from 35.6 percent.[39] Prescription opioids began to fall out of favor and Oxy abusers instead turned to the old standby, heroin.
- Additionally, the law established a database of authorized wholesalers.
- Anytime we hear of the black market, it isn’t unusual for our minds to immediately think of poorly lit alleys, people in black clothing, illicit drugs and dirty money exchanging hands.
- Goldsmith is quick to note that he does not advocate illegal use of psychedelic drugs, nor does he offer such drugs to his psychotherapy patients.
- Health Risks: Users face significant health hazards due to the unregulated nature of drugs, which can lead to addiction, overdose, and diseases.
- Crime and Violence: The black market is often linked to organized crime, leading to violence and insecurity in affected communities.
- Economic Drain: Billions of dollars are lost to enforcement and healthcare costs related to drug abuse and trafficking.
- Impact on Families: Drug addiction can devastate families, contributing to social issues such as child neglect and domestic violence.
FAQs about the Drug Black Market
What are the most commonly traded drugs in the black market?
The drug black market typically features substances such as cocaine, heroin, methamphetamine, and marijuana.
How do governments combat the drug black market?
Governments employ various strategies, including law enforcement, public education campaigns, and rehabilitation programs for drug users.
Why do some regions have a larger drug black market?
Factors such as poverty, weak governance, and socio-cultural attitudes towards drug use contribute to the size of the drug black market in specific regions.
Is there a solution to the drug black market?
While there is no one-size-fits-all solution, approaches that combine treatment for addiction, education, and regulated legal markets may help mitigate the issues associated with the drug black market.
In conclusion, the drug black market poses significant challenges to society but understanding its complexities is the first step toward developing effective solutions.
