From: Jim Rosenfield <[j n r] at [igc.apc.org]>
Newsgroups: talk.politics.drugs
Date: 24 Mar 93 08:02 PST
Subject: Cost of the War on Drugs (rev.1)


/* Written  8:02 am  Mar 24, 1993 by jnr in igc:alt.drugs */
/* ---------- "Cost of the War on Drugs (rev.1)" ---------- */
Save Our Liberties
Sunnyvale CA  
(415) 964-3655

We have asked Milton Friedman, who recently came out for major revision
of the punishment oriented drug policies to review these statistics
and to make recommendations.  E-mail messages to me have expressed some
doubts as to the veracity of the stats and the dangers of publicizing
"fantastic" numbers.  As a first cut at this subject, I think these numbers
are pretty good.  Your input and criticism is cheerfully requested.
I believe this chart may provide one of the most powerful tools we
have to support overturning the existing policies.

                  Cost of the War on Drugs
                           $s Billions

   Year                `89      `90      `91      `92      `93      `94
   ---------------------------------------------------------------------
 1 Stolen              148      154      160      168      176      184
 2 Incarceration        73       80       88       96      104      112
 3 Lost taxes           41       43       45       47       49       51
 4 Construction         20       21       23       25       25       25
 5 Federal War           7       10       12       13       20       25
 6 Extra Welfare        13       14       15       16       17       18
 7 Harrassment          10       11       12       13       14       15
   ---------------------------------------------------------------------
   Totals              312      333      355      378      405      430

Reagan's 8 years: $1.860 Trillion       Bush's 4 years: $1.378 Trillion

     Explanation

1.   Value of goods stolen.  Most of these goods are probably later replaced
     at additional cost by owner or insurance.  Some people just take the
     loss.  The dollar value stolen approximately equals the street value
     of the drug sales.  "Marijuana, the New Prohibition", Pocketbooks,
     Kaplan, John, Prof Law, Stanford U.
2.   Total for additional police, judges, courtrooms, prosecutors, court
     costs, maintenance of jails, guards, probation personnel, and the
     entire police, justice and prison system required to deal with the WoD.
     Cost of one individual incarceration in California is $42,000.  San
     Jose Mercury News, May 9, '91 "Corrections Program Called Utter
     Failure", Chairperson of Legislature Criminal Justice Committee John
     Burton, Assemblyman Bill Lockyer(Senate Judicary Committee), . Prison
     Population reaching 100,000 in CA.  National is 10X that (about 1
     million in 1991, 1.3 million now.  Department of Justice Figures).
     Police and Court costs are estimated at an additional $35,000.
 3.  Taxes lost on the sale of drugs:  Estimate of $160 Billion in sales of
     illicit drugs.  Suppose, if legal, price of drugs would be 1% of that
     or less. The remaining 99% would then be spent on other licit goods
     raising tax revenues about one-third the retail value.
 4.  Construction of new jails and other facilities to deal with burgeoning
     case load. This figure is derived from projected bond sales already ont
     he books.
 5.  Federal WoD consists of arming and paying interdiction forces along
     with international efforts to stem flow of drugs. Congressional
     allocations.  Election of Clinton may moderate future expenditures.
 6.  Extra welfare needed to support families of drug offenders while they
     are in prison.  Estimate by authors.
 7.  Harrassment: costs for society from people who don't go through jail
     but are arrested and released, such as lost wages, taxes on wages,
     increased welfare, loss of job, Estimate by authors.

1994 figures are projected, of course.

Other costs which could be added to this chart:

Lost productivity of perpetrators.

Because families are distressed, development of children of the offenders
and their future productivity (or cost) to society will suffer.  Carnegie
institute says one-quarter of all children are seriously at risk of not
reaching productive adulthood..   SF Chron, 3/10/93.  How much worse for
children of imprisoned offenders?

Cost of lives lost to drug associated crime, plus productivity and taxes  

   associated with those lives.   We estimate 2,000 innocent lives (1989,
Cato Institute #121 "Thinking About Legalization")   1680