Bloomberg reports that Italy will now begin including its shadow economy in the country’s GDP, in an effort to reduce the national deficit:
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Italy will include prostitution and illegal drug sales in the gross domestic product calculation this year, a boost for its chronically stagnant economy and Prime Minister Matteo Renzi’s effort to meet deficit targets.
Drugs, prostitution and smuggling will be part of GDP as of 2014 and prior-year figures will be adjusted to reflect the change in methodology, the Istat national statistics office said today. The revision was made to comply with European Union rules, it said.
In our most recent podcast, “Are We Ready to Legalize Drugs? And Other FREAK-quently Asked Questions,” we discussed drug legalization. Here’s what Steve Levitt had to say on the benefits of legalizing marijuana, as compared to crack cocaine:
So crack cocaine is a really devilish drug because it gives you such an intense high for such a short period of time that your desire is just to get high over and over and over. It’s highly addictive, and it’s really hard to function when you’re a crack addict. But what it makes me think is that this experimentation we’re doing now with policy towards drugs like marijuana, and potentially it would be expanded over time is a good idea. Because I think when it comes to marijuana, the social costs of the prohibition of marijuana are just really low. Very few people in the United States are being killed over marijuana. The gangs are not making their money off marijuana. Marijuana in some very real sense is too cheap. It’s too easy to grow yourself and so it isn’t the source of all of the ills that come with prohibition. And so, so the gains of legalizing marijuana for society are much smaller than the gains would be to legalizing cocaine if you could control how the outcome came.
But does marijuana legalization really harm anyone? Like poor minorities, for example? Michael Kinsley, Andrew Sullivan, and David Frum recently debated that question, as well as legalization in general, for Bloggingheads TV. In an accompanying blog post, Sullivan points to Reihan Salam‘s recent post on the subject: Read More »
Are We Ready to Legalize Drugs? And Other FREAK-quently Asked Questions: A New Freakonomics Radio Podcast
Our latest podcast is called “Are We Ready to Legalize Drugs? And Other FREAK-quently Asked Questions.” (You can download/subscribe at iTunes, get the RSS feed, or listen via the media player in the post. You can also read the transcript; it includes credits for the music you’ll hear in the episode.) Once again, Stephen Dubner and Steve Levitt take questions from you, our readers and listeners.
In this installment, Joseph Fogan wants to know about the hidden costs of the war on drugs. The latest Gallup poll shows that 58 percent of Americans favor marijuana legalization (compared to just 12 percent in 1969). Are we really ready to legalize drugs in more than just a few states? And if the answer is yes, what will police do all day? Read More »
A new paper in JAMA Pediatrics finds that a small number of children are showing up in Colorado emergency rooms having unintentionally ingested marijuana. It seems they are gobbling up their grandparents’ medical-marijuana candy. The paper is gated but Medical News Today summarizes:
As background information, the authors, from the Rocky Mountain Poison and Drug Center, Denver, explained that medical marijuana has higher levels of tetrahydrocannabinol (THC) than when used recreationally. They added that medical marijuana is sold in candies, soft drinks and baked goods. … There is concern that parents/grandparents may not disclose their use of medical marijuana because of the perceived stigma associated with the drug.
Here’s a fascinating article in the Yale Journal of International Affairs, by Paul Rexton Kan of the U.S. Army War College, about cyberwar between non-state agents — in this case, Anonymous versus Los Zetas, the Mexican drug cartel. Read the whole thing; here’s the first paragraph:
In the fall of 2011, two clandestine non-state groups—a hacktivist collective and a Mexican drug cartel—stared each other down in the digital domain, with potentially fatal real world consequences for both sides. Los Zetas, a Mexican drug trafficking organization composed of former members of Mexico’s Special Forces, kidnapped a member of Anonymous, the global hacking group, in Veracruz on October 6th. In retaliation, Anonymous threatened to publicize online the personal information of Los Zetas and their associates, from taxi drivers to high-ranking politicians, unless Los Zetas freed their abductee by November 5th. The release of this information on the Internet would have exposed members of Los Zetas to not only possible arrest by Mexican authorities, but also to assassination by rival cartels. Unconfirmed reports suggest that Los Zetas then attempted to “reverse hack” Anonymous to uncover some of its members and to threaten them with death. As a consequence, a few members of Anonymous sought to call off the operation and disavowed those members who wanted to go forward. With time running out and locked in a stalemate, Los Zetas released their kidnap victim on November 4th with an online warning that they would kill ten innocent people for each name that Anonymous might subsequently publicize. Anonymous called off its operation; each side appeared to step back from the brink.
(HT: LTC Scott Kelly)
The AP reports that Brazilian drug lords are colluding to get rid of crack cocaine even though it will result in millions of lost dollars. Why? Because crack customers have made their jobs unmanageable:
“Rio was always cocaine and marijuana,” [former police chief Mario Sergio Duarte] said. “If drug traffickers are coming up with this strategy of going back to cocaine and marijuana, it’s not because they suddenly developed an awareness, or because they want to be charitable and help the addicts. It’s just that crack brings them too much trouble to be worth it.”
A lawyer for the gangs confirms this: Read More »
A few months ago, I discussed the tourist drug ban in the Netherlands, with a focus on my town, Maastricht. NPR just ran a story on the intermediate term effects of the new regulations. Some of the “coffee shops” (places where one could buy a pre-rolled or roll-you-own joint for €3) have reopened, as I predicted; others have not. Unsurprisingly, what has happened is that drug dealers, who previously had dealt only in hard drugs, are now also selling marijuana illegally. While total consumption of weed has probably dropped, buyers are worse off, as are coffee-house owners, with the main beneficiaries being drug dealers. As always, something that raises price in a legal market will increase demand in the illegal market.