12 Dec 2022

137

The Effects of Illegal Drug Trafficking on the U.S Economy

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Academic level: College

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Introduction 

In the global society the illegal smuggling of narcotics has become a tremendous issue which has enhanced crime in the United States. The smuggling, use, abuse of illegal psychoactive substances has damaged the society at large. The illicit smuggling and trafficking of narcotics has become an issue in the international community with various effects unto the economy. Based on the United National International Drug Control Program, it focused on tackling al the illicit markets by monitoring active consumption, distribution and production of illicit drugs, the report hence expands all the data gathers into the United States by analyzing the economic consequences of the abuse of narcotic drugs. In the research paper, the main effects of illegal smuggling of narcotic drugs on the United States economy’s performance are fully addressed. The main objective is to analyze the magnitude of the key effects of drug smuggling in the United States economy and how it has altered or promoted active growth and development. It shows a basic assessment of the economic consequences of the drug issue and the process of drug policy development in the United States to help counter the smuggling activities. The research question of the study is on determining the effects of illegal smuggling of narcotics towards the United States economy. The hypothesis of the study is there is a positive relationship between the illegal smuggling of narcotics and the United States versus is there a negative relationship between the illegal smuggling of narcotics and the United States economy. The research study is organized into sections of analysis that entail a literature review, the qualitative methodology, data analysis and conclusion of the research. 

Literature Review 

Drug abuse in the United States is highly increasing amongst the young people who have formally introduced the substances into their system and have resulted in drug addiction. Belhabib et al. (2020) stated that the organized forms of protection concerning crime on drugs state that the International Opium Commission has actively formulated strict laws to help prevent the smuggling of opium and its distribution to various territories. The research study states that in the United States of America, a step was taken to help control the use of narcotics. The research method used in the study is on the use of past secondary resources, which show the different federal agreements to help control the circulation of drugs in the United States. The theory used by the authors is the life-course theory which analyzes the past reforms used in reducing the spread of drugs and comparing it with the recent ones. It helps reduce the entire circulation of illicit drugs. There is a need to trace all the histories concerning international agreements on enacting Federal statutes to handle the spread of narcotic drugs. 

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The article talks about the fact that the American war on drugs has constantly increased annually and has led to the creation of relative policies to help the government sort the key issues in its war against drugs. Phillips (2015) states that the major prohibitions used have led to additional social problems concerning the war on drugs in the nation. Therefore, the article states that we have almost lost the war on drugs since the people are quite ignorant of following the rules and regulations. The research method used in the study is on the use of surveys where analysis was conducted to determine the rate of drug abuse in the society and check whether the people strictly follow the guidelines made. The theory used by the authors is on the strain theories where during the survey, it was easier to determine the key stressors that enhance the crime on drug abuse. The war on drugs is slowly losing importance since youngest people have fully found comfort in drug abuse activities (Phillips, 2015). In the past decades, the United States has spent a lot of money on the war on drugs by allocating a certain amount of funds to enhance the key efforts within the United States-Mexico border. Even while examining the key efficacy plans in drug operations, the research analyzes data on drugs available in the high schools. The research method used was the survey technique which proved that it is easier to purchase drugs such as cocaine. They are used to determine the key issues within the high schools existing within a border town and how the government formulated policies to reduce the circulation of drugs within the schools. The theory used by the authors is the strain theory that investigated the key determinants for drug abuse in high schools. 

The research conducted by Bagley (2015) shows a growing crime rate in the United States that has resulted in acts such as gun acquisition and control, death penalties, and incarceration. The key attributes are linked to alcohol abuse and drug abuse, which steadily increased between 1980 and 1992. Bagley (2015) adds that the key implication is the neglect of children where their parents fail to raise them, the lack of education, and the abandonment by the governmental agencies. The entire act has resulted in the aspect of "super predators," which is a group of children aged 13 to 16 who feel merciless as they rape, rob, and kill people after misusing the drugs. From a systemic and economic analysis, their actions are triggered by moral poverty, and only religion offers a level of change to them. The research method used in the analysis is observations where the social trends are keenly analyzed to determine the key factor leading to moral poverty. The theory used by the author is on the conflict theory, where he analyzes the key reasons that lead to the moral poverty of the children; hence they end up engaging in crimes and misusing drugs. 

Caulkin & Kleiman (2018) stated that it is important to acquire lessons on following the set guidelines concerning drug abuse based on the set drug policies. The method used in the study is on observations that identified that in the society, there are major deaths that occur because of ultimate drug usage. Therefore, it is essential to avoid drug abuse that risks people's health conditions (Caulkins & Kleiman, 2018). The theory used is the life course theory that shows all the negative effects of drug abuse that should be avoided at all costs. 

In society, drug-related violence has escalated in Mexico since 2007, even as most efforts have been employed to combat drug trafficking. The study examines all the spillover and direct effects of the Mexican policy on the present drug trade. The research method used in the study is through observations and the regression discontinuity that estimates how the drug abuse and other violence are related to drugs increase after the election of certain mayors in Mexico. From the empirical shreds of evidence, Cooper (2015) suggests that every form of violence highly reflects the rival traffickers' aims to attack the territories even as various crackdowns weaken the criminals. The author uses the research theory on conflict theory that checks how the leadership model results in drug abuse activities (Cooper, 2015). Hence, the study uses a network model to check the trafficking routes that prove that the PAN victories highly divert the drug traffics, increasing violence within the basic drug routes. 

In the article Russell Crandall (2020) relays the full history of the war that lasted for more than a century. He provides an essential view concerning the human, political and economic impacts of the United States drug policies. Crandall (2020) offers a skeptical tour from Afghanistan to Miami to help trace all the social networks which lead to the drug consumption and drug trade. The use of drugs in society has greatly increased with active addiction rates amongst young people. It has led to various effects on society and the economy, while in other situations, various benefits have been witnessed from the use of drug substances (Crandall, 2020). The research method used in the study is using secondary sources to offer a systematic framework on the past conditions of the people in the United States based on how they handled drug abuse issues. The research theory used by Crandall (2020) is on the strain theory, which identifies the key components for the increased addiction rates amongst the people of the United States in the past decade. 

In the era of mass incarceration of the people, the incarceration rates were higher amongst the Hispanic offenders than the White offenders. The disproportional incarceration rates failed to occur hence enabled the people to live freely with one another. Felson et al. (2020) examine the effects of mass incarceration on the key admission or marginal and minority offenders within the state prisons. The research method used is survey tactics on most inmates in the State and Federal Correctional facilities from the period between 1973 and 2004. The results show that there was a disproportional increase in the admission rates of marginal offenders and other Hispanics during the onset of mass incarceration. Felson et al. (2020) used the research theory on the life course theory to determine the key trends in mass incarceration rates resulting from drug abuse and the current states of living conditions that have resulted. 

As stated by Orrenius and Coronado (2017), the drug policies in the US have greatly changed in the past 30 years because there have been the major formulation of laws and regulations to govern illicit smuggling and drug abuse. It shows that most drug abusers have failed to adhere to the set regulations, thus renewing policies. The research method used is secondary research resources to show a comparison between the drug policies in the past and recent times (Orrenius and Coronado, 2017). The theory used is the life course theory which has monitored all the changed from the past to the recent times. 

As stated by Pinotti (2015), various scholars have made descriptions concerning how the way on drugs has played a major role in the United States penal changes, mostly under the racialized impacts. Various aspects within the war theme are highly under-explored through punishments. There are five modes through which the regulation of drugs in the USA occurs in line with penal changes and thus offers a diffuse and variegated conceptualization about the drug-war punishments present (Pinotti, 2015). The research method used is on the effective analysis of research conducted by past scholars to determine the roles of war on drugs towards the US punishment levels. The theory used is the conflict theory to ascertain how the wars on drugs affect the present punishments. 

In society, major deaths occur because of ultimate drug usage; therefore, it is essential to avoid the production, consumption, and circulation to avoid risking the health conditions of the people. Felbab-Brown (2017) highlights that narcotic highly affect an individual's health system by causing harm such as ecstasy from the frequent usage of the substances. From the intrigued complication it results into other severe factors which may lead to an individual’s life being much critical. Heroin being a hard drug affects the brain receptors thus the thinking abilities may be delayed fully. The drugs hence weaken an individual’s immune system which may lead to severe health complications and can lead to death if not controlled well enough. When the immune system is quite weak it aptly leads to situations where the body is prone to certain illnesses that are unavoidable due to a low immunity (Felbab-Brown, 2017). The research method used in the study is the use of secondary sources. In contrast, the research theory applicable was the strain theory that offered a systematic framework on the past conditions of the people in the United States based on how they handled drug abuse issues. 

Major efforts should be applied to help stabilize the rate of drug circulation in society and reduce drug abuse and misuse levels. Schmits and Glowacz (2019) outlined that most drugs have evolved to help address the constant consumption levels, the existing opioid epidemic, the medical use and legalization of marijuana, and the shifting foreign policies in America (Schmits and Glowacz, 2019). The method used in the analysis was the observations. In contrast, the theory that suited the research was the strain theory that showed the adults' different aggression levels, empathy, impulsivity, and other behaviors. 

Methodology 

The method used in the study was the use of qualitative method under the application of content analysis where the past resources and reports were analyzed to determine the monetary flows and outflows from the economy that attributed to illegal trafficking activities. Further estimations were done towards the unusual transactions and other malicious activities to various reports found in the financial intelligence units to help control and monitor the money laundering activities that attribute illegal smuggling. Various financial transactions were assessed to determine any anomalies in financial returns for the United States economy where certain funds were allocated to various sectors. Also the key issues on crime were analyzed for the past years to determine if or not they were linked to the war on illicit smuggling of narcotics. All the balance of payments was analyzed to ascertain the capital flows in the economy and determine the estimated financial transactions annually. 

Analysis 

The study proved that the previous financial estimates for the United States were focused on active generation of illegal income. They entailed practices such as tax evasion means where most of the earnings occurred from criminal activities. They therefore increased all the nominal terms for the United States economy by about US$780 billion. The returns became stable in the period between 1985 and 2000 which was expressed in line with the proportional Gross Domestic Product. When the tax evasion activities were excluded from the economy the criminal income occurring from illegal trafficking of narcotics increased from a range of 2.5% of the total GDP to about 4%. It was linked in line with the massive drug consumption levels and trafficking activities. The values then decreased to about 2.3% which was in line with a fall in drug abuse in 2014 which was for the use of cocaine drugs and reduced criminal activities. 

From the hypothesis setting on if there is a positive relationship between the illegal smuggling of narcotics and the United States versus is there a negative relationship between the illegal smuggling of narcotics and the United States economy both features are evident. However the positive relationship is quite evident since more returns and gains are felt when the illegal smuggling of narcotics are conducted in the United States region. A detailed breakdown of criminal activities in the United States rove that all the tax evasions attributed to more than a half of the total illegal proceeds that were recorded. The drug trafficking procedures hence accounted for a fifth of all global proceeds that were linked under fraud. It proved that the trafficking activities attributed to a 47% increased margin of fraud activities in the economy hence a decline in growth and development. The table below shows the estimated earnings from unlawful activities and the proceeds they earned the United States. It thus proves that most tax evasion activities occurred at a higher ratio as a result of illegal trafficking of narcotics while the drug trafficking activities followed which gave the country relatively larger earnings. 

Estimated unlawful earnings in the United States 

  % Total proceeds 
Drug Trafficking  20.6% 
Fraud  12.6% 
Tax Evasion  55.7% 

Even with most criminal checks towards the economy to help reduce the activities on smuggling they both affected the economy both positively and negatively. A lot of criminal acts were reported in the nation which affected the security needed and ability to protect the citizens at large. On the positive side the illegal smuggling of narcotics led to increased financial returns to the United States where most people ended up purchasing the drugs thus increased profits which promoted the success of the economy. When the circulation of drugs increased, more sales were made which enhanced the overall growth and development of the United States economy (Caulkins & Kleiman, 2018). As for the negative aspect of illegal trafficking of narcotics, it led to increased criminal behavior which threatened the safety and security in the nation. Most people mostly the youths engaged in active abuse of drugs which affected their health, their social relations and reduced their productivity capacity in the United States. 

Conclusions 

In most modern societies there is major issue on illegal trafficking of narcotic drugs which has both affected the United States economy positively and negatively. The misuse of drugs has significantly altered the overall growth and stability of the economies by enhancing drug abuse activities and also improved the active performance in the social model. The prevalence of drug use has therefore led to many people being convicted regarding certain drug offences. Others have resulted in major health complications which have affected their wellbeing and ability to conduct operations well enough. All in all, the drugs that circulate in the society get consumed by most members coming from every segment of the society and it alters their utmost aspect for the modern life. Based on the ambiguous usage of drugs in the modern times the need for a liberal and democratic society is quite necessary since it monitors the entire drug regulation systems. The regulation systems create laws and regulations which govern the activities to ensure that all the desirable protocols are fully identified and followed significantly 

The future research for the study should examine the effective ways the drug regulation team for the United States tackles the criminal cases that are reported concerning active drug abuse activities. It should determine the relative laws and regulations put in place to help tackle the cases on illegal smuggling, abuse and drug addiction. From that aspect it will become easier to monitor most illegal activities and ensure that the rule of the law is applied at all costs. Also, it should check all the financial losses and profit margins garnered in the nation the past few years as a result of illegal smuggling and trafficking of narcotics. Therefore, all the data records can easily be assessed to figure out the necessary adjustments that can be made to stabilize the nation at large. 

References 

Bagley, B. (2015). Drug trafficking and organized crime in Latin America and the Caribbean in the twenty-first century: challenges to democracy.  Drug Trafficking, Organized Crime, and Violence in the Americas Today , 1-19. 

Belhabib, D., Le Billon, P., & Wrathall, D. J. (2020). Narco‐Fish: Global fisheries and drug trafficking.  Fish and Fisheries 21 (5), 992-1007. 

Caulkins, J. P., & Kleiman, M. (2018). Lessons to be drawn from US drug control policies.  European Journal on Criminal Policy and Research 24 (2), 125-144. 

Cooper, H. L. (2015). War on drugs policing and police brutality.  Substance use & misuse 50 (8-9), 1188-1194. 

Crandall, R. (2020). 21. The War over the War on Drugs. In  Drugs and Thugs  (pp. 317-330). Yale University Press. 

Felbab-Brown, V. (2017). Organized crime, illicit economies, civil violence & international order: more complex than you think.  Daedalus 146 (4), 98-111. 

Felson, R. B., & Krajewski, A. T. (2020). Did mass incarceration lead to the disproportionate admission of minorities and marginal offenders?  Criminology & Public Policy 19 (4), 1209-1229. 

Orrenius, P. M., & Coronado, R. (2017). The effect of illegal immigration and border enforcement on crime rates along the US-Mexico border. 

Pinotti, P. (2015). The causes and consequences of organised crime: Preliminary evidence across countries.  The Economic Journal 125 (586), F158-F174. 

Schmits, E., & Glowacz, F. (2019). Delinquency and drug use among adolescents and emerging adults: The role of aggression, impulsivity, empathy, and cognitive distortions.  Journal of Substance Use 24 (2), 162-169. 

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