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From: mroddy@enmasse.UUCP (Mark Roddy)
Newsgroups: net.politics
Subject: Re: (DANGER: contains FACTS) (not used)
Message-ID: <372@enmasse.UUCP>
Date: Sat, 16-Mar-85 11:49:35 EST
Article-I.D.: enmasse.372
Posted: Sat Mar 16 11:49:35 1985
Date-Received: Sun, 17-Mar-85 23:47:02 EST
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Organization: Enmasse Computer Corp., Acton, Mass.
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> 
> 
> "In short, the framework of capitalism embodies the following institutions
> and assumptions: (1) private property, (2) freedom of enterprise and choice,
> (3) self-interest as the dominant motive, (4) competition, (5) reliance
> upon the price system, and (6) a limited role for government.

	Drug trade: passes (1), (3); fails (2), (4), (5), (6).

	2: the DEA is out to get you if you trade in drugs. This is unlike,
	for example, the rug business, where importation or production
	of rugs will not land you in jail.

	4: it is my assertion that competition is artificially limited,
	NOT NONEXISTANT, through the collusion of organised crime and
	corrupt government officials.

	5: this depends on the drug. Marijuana is more competitve, the
	price fluctuates with availability. Cocaine, on the other hand,
	always costs $100 a gram, the price is fixed, the quality of
	the substance fluctuates.

	6: this is where the real debate is. It is my assertion that
	organized crime syndicates form a part of what I would label 
	the "hidden government." This is not the same as elected
	officials, post office clerks, etc. Like the collusion of
	economic interests between the pentagon and defense contractors,
	the drug trade creates a relationship between cartels of
	drug traffickers and various enforcement agencies. These
	relationships are extremely difficult to document, however, one
	classic example was the CIA involvement with the golden triangle
	opium producers. Another example is the town in florida that
	was written up in ?Life magazine last year- Port Everglades or
	something. The entire town was involved in smuggling, police,
	elected officials etc. The DEA had to conduct a military operation
	to shut it down. 


> 
> "Pure competition, you will recall, presupposes that certain specific
> conditions are fulfilled.  1. A purely competitive industry is composed of
> a large number of independent sellers.  2. The firms offer a standardized
> product.  3. No individual firm supplies enough of the product to influence
> its market price noticeably.  4. In a competitive industry no artificial
> obstacles prevent new firms from entering or old firms from leaving the
> industry."

	Drug trade fails 2,3,4; 1 is debateable.

Flame starts here:
> 
> If you still don't understand a free market, please do some reading of
> economics texts.

   If I knew no economics except that which you have quoted, I would
   still conclude that the drug trade does not represent an example of a
   free market.

> If you still think "The (fill in your favorite crime
> organization here)" controls all facets of criminal activity in America,
> please read some books or articles about organized crime.  If, after you
> have gained your new found knowledge, you must still insist on ignoring
> the FACTS when posting an article about this subject, please be so kind
> as to indicate "personal opinion" in your "Subject:" line.  This will
> save me time and annoyance.  Thank you.

	What I said was that at the lower levels of the drug trade,
	i.e. the street level dealers, individual entrepeneurs, etc.,
	there was competition, and a relatively free market. However,
	the import/export business, and large scale production is
	controlled by organized crime. 




-- 
						Mark Roddy
						Net working,
						Just reading the news.

					(harvard!talcott!panda!enmasse!mroddy)