Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
War on Drugs Killed Thousands Here and Abroad and Cost Taxpayers Trillions
The immense cost of the U.S. war on drugs is unbelievable. Its cost in money and resources has been hundreds of billions of dollars. It cost in lives lost and careers ended runs into the hundreds of thousands. In spite of its costs, the drugs problem is worse than ever. It is not only a national, state, and local government problem but an international problem, involving many countries around the world, the UN, and numerous international bodies as well. Thousands of persons have been incarcerated whose only crime is marketing substances that drug users demand, a market response to a failed anti-drug policy. And the drug user is seldom prosecuted although he is the one governments are trying to save from addiction and spends billions trying to rehabilitate. Are we crazy or what?
Drug users, who include a number of Hollywood and society celebrities as well as ordinary people seeking a high while engaging in private sexual activities, ordinary thrill seekers, caused the death of thousands of innocent people, including judges, soldiers, and an army of black and white workers growing, marketing and distributing the drugs. You would think that the USA would have learned from its experience with its prohibition of alcoholic beverages. The eighteenth amendment to the U.S. Constitution was enacted in 1919 and repealed in 1933. It caused thousands to become rum-runners, to engage in selling drugs, to open speakeasies, and to become racketeers like Al Capone.
The War on Drugs" began in 1914 with passage of a law to forbid prescribing drugs for addicted patients. Between 1915 and 1938, more than 5,000 physicians and pharmacists were convicted and fined or jailed. Hardly any patients were prosecuted. The Federal Bureau of Narcotics was established in 1930. In 1971, it was reported that ten to fifteen percent of the servicemen in Vietnam were addicted to heroin. In the 1980s, while the number of arrests for all crimes had risen by 28%, the number of arrests for drug offenses rose 126%. Prisons became a booming business. In 1994, the New England Journal of Medicine reported that the "War on Drugs" resulted in the incarceration of one million Americans each year. What was their crime? Meeting the demand of their fellow-citizens for drugs. ...
Pres. Trump Makes His Worst Deal Ever, the Pivot Toward China and Away From Russia
Chinese President Xi Jinping taught Pres. Donald Trump a lesson in how to make a deal last week. The deal will do little to reduce the huge trade surplus China enjoys with the USA. China promises what amounts to a trifling increase in imports of coal from the USA at the expense of N. Korea. Germany and Japan the second and third of our trade partners having a huge trade surplus with the USA, can get the same “deal” by promising to export fewer cars to the USA. They can make them in U.S. plants with the dollars they acquired by decades of huge chronic trade surpluses. Japan has already engaged once in this ploy. S. Korea, another trade surplus country can make the same deal. The deal will not reduce our enormous trade deficits. China succeeded in getting Trump to tone down the anti-China rhetoric of his election campaign. What did the USA get in return?
China promises to curb North Korea's nuclear program. The deal ensures China that it will be able to maintain a huge trade surplus with the USA. The deal will make Trump’s promise to Make America Great Again impossible because eliminating our trade deficits is essential to restoring economic growth and manufacturing employment. And During the campaign, Donald Trump promised to reduce our foreign involvements.
And there are other important considerations. Non-Communist Russia has always been a U.S. ally. Even as a Communist nation, she was our ally in World War II. Now we choose to ensure that the only country challenging U.S. economic power, Communist China, is enabled to continue its growth at the expense of the American worker, except for a few coal-miners! China’s economy became second in the world as a result of our misguided trade policies and multi-nationals, like Goldman Sachs, Apple, Hewlett-Packard, Caterpillar, and others, sharing their capitalist technologies with it. U.S. universities trained the creators of the atomic bombs in China and Russia. Russia as an ally did more to win World War II than any other country. So why are we turning on Russia and pivoting toward China, a huge mistake that guarantees the decline of American power and weakens us against former enemies Germany and Japan. ...
Trump is Right: Keep the Export-Import Bank -- we're published in American Thinker this morning
To read it, go to:
Journal of Economic Literature:
Atlantic Economic Journal: