Pubdate: Thu, 22 Nov 2001 Source: Japan Times (Japan) Copyright: 2001 The Japan Times Contact: http://www.japantimes.co.jp/ Details: http://www.mapinc.org/media/755 Author: Hiroshi Ohta And Michael L. Lahr Note: Hiroshi Ohta is professor of economics at Aoyama Gakuin University and Michael L. Lahr is associate professor, Rutgers, the State University of New Jersey Bookmark: http://www.mapinc.org/decrim.htm (Decrim/Legalization) PROTECTING THE PUBLIC FROM THE THREATS OF TERROR AND DEPRESSION Money Wasted Fighting The Unwinnable War On Drugs Would Be Better Spent On Antiterror Security Measures Special to The Japan Times In his Sept. 30 New York Times article, "The Fear Economy," MIT economist Paul Krugman warned that the American public should be prepared for a possible deflationary spiral comparable to the Great Depression of the 1930s and Japan's milder but chronic depression of the 1990s. A major depression could certainly result from the psychological fear triggered by the present terror. So Krugman tried to assure the American public that the collapse of the twin WTC towers should be less devastating to the economy in monetary terms than has been any of "America's recent natural disasters" - -- such as severe hurricanes or earthquakes. He is right. Even in terms of human casualties the present body counts, while in thousands, are not really so high relative to other avoidable causes of death. For example, the annual death toll from smoking in the United States alone amounts to about an awesome 400,000, including 53,000 dying from passive smoking, according to the New England Journal of Medicine. If an economic depression is imminent, if it is indeed related to the public psychology, and if because of this the public feels a need to "escape," then we have a better proposition. While Krugman's "unorthodox remedies" seem to include letting the Bank of Japan print and disperse money, our own heretical proposal is to revamp the contemporary prohibition on drugs. It may sound far-fetched, but it could succeed in "killing two birds with one stone" or perhaps even no stone at all. Regarding the Sept. 11 attacks, it is far more important to know what has really happened rather than to know what to call them. This is because there is a fine distinction between knowing the name of something and knowing something. Reacting to what has happened by calling it a "cowardly act" or a "war," we are only likely to provoke those supporting the attackers into calling it a "sacred war," so that the suicide attackers themselves become martyrs. Punishing those organizations and individuals responsible for the attacks is unlikely to hinder the possibility of future "cowardly acts" unless those who want to become "martyrs" are somehow eliminated prior to their martyrdom. Six decades ago, the Japanese public had been firmly indoctrinated into believing that they were waging a "sacred war" against the "goblin beasts." They failed to stop their kamikaze attacks and bamboo lancing despite, regardless of, or even all the more because of the devastating atomic bombings. Thus it was not only the Japanese but also the Allies who were fortunate that the Showa Emperor had the courage to surrender unconditionally to the Allies and to order the Japanese public to stop fighting. Indeed, rather than what moniker to lend to the series of terrorist attacks, we instead need to seek an understanding of what is at their root in order to effectively counter such acts in the future. Rather than counter them, however, such foul play ought to be prevented or avoided altogether. And while nothing can be terror- proof, we could easily allocate far more resources to airport and airplane security. But will we be able to pay for such security enhancement? We believe that allocating resources presently devoted to the so- called war on drugs could fund some measure of terror prevention. This terror prevention, however, should be distinguished from the "war on terror," which is a terrible error. The latter is no more rational a manner to regain public security than is continuing the war on drugs. Both waste immeasurable resources -- legal infrastructure, labor force, taxpayers' money, and above all human lives. According to Gwynne Dyer, a London-based journalist, $450 billion a year (almost 10 percent of world trade) flows into the hands of "professional criminals," who have become "rich enough to subvert entire countries." His observation appeared in The Japan Times July 26, less than two months prior to the attacks in the U.S. But lest the reader misunderstand Dyer's main thrust, we hasten to add, his article was titled "Legalization: The Drug War's Best Weapon." He notes that heroin is a highly addictive substance, but cigarettes are "even more addictive and a grave health hazard to boot." What would then happen if narcotics less hazardous than cigarettes were legalized? Thomas Szasz, an American psychiatrist, answers this question by raising this simple question: Don't we know that if opioids were deregulated and sold in the open market, thieves would have no more reason to steal opium from pharmacies than they have to steal onions from supermarkets? Why are opioids stolen? It is because they are worth a lot on the black market. Why are they worth a lot? It is because they are regulated. Who wants drug controls then? Our hypothesis: Both professional criminals and professional noncriminals. The latter's vested interest lies in the production of legal drugs on the one hand and the war on drugs on the other. We see no reason why smoking (apparently more deadly and even more addictive than is heroin) is politically and legally sanctioned, while lesser evils to society at large are totally unacceptable. As a natural economic consequence of drug regulations, some American pharmacies reportedly do not even carry opium-based pain-relief pills for fear of theft. Who benefits from such regulations the most? Our wild speculation: The tobacco industry does. If other drugs, which are less of a societal health hazard than nicotine and which are more effective in making people "high" or "stoned" were legalized, then certainly fewer people would die from their consumption. If, indeed, any such presently illicit drug was legalized on par with nicotine and caffeine, so that proper hazard warnings were provided, then we suspect that the public -- including smokers, nonsmokers and smokers-to-be alike -- would be better off. The only other clear losers, other than illicit drug dealers, would be those in the tobacco industry. And even they could seek employment and profits elsewhere, although they would no longer enjoy the "quasi rent" that they have gained at the expense of a net overall loss to society. Thus, the war on terrorism and the war on drugs seem to us to be inexorably intertwined, albeit perversely, through vested interests in the tobacco industry. The tobacco industry, as the producer of a legal drug, has incentives to keep other potentially competitive drugs from becoming legalized. It has incentives to lobby for the drug war and, to the extent that it succeeds, operators in the drug-related black market keep raking in hundreds of billions of dollars every year. These operators include opium magnates in the Middle East (e.g. Afghanistan) and the drug lords in South and Central America, as well as their local distributors. And only a small fraction of the take of this worldwide net of organizations needs to be invested in controlling some poor, sick minds to undertake subversive activities. One means of their control appears to be through religious fanaticism; such groups are at large everywhere. Only a few years ago a number of graduates from Japan's "Ivy League" universities dispersed sarin gas in Tokyo's subway for some unfathomable cause, being allegedly indoctrinated by a religious leader who to this day insists on his innocence because he is "unsighted," albeit enlightened. We would not be surprised if drug money caused some of the dive in world stocks just before and after the Sept. 11 incident. If it was, then the war on drugs should be fought all the more by legalization, gradually at least, if not right away. Further, money and human resources allocated to law enforcement in the war against drugs need not be reduced, only reallocated to airport security or elsewhere as needed. They could also be increasingly allocated to drug education, prevention of passive smoking, etc. In light of the aforementioned staggering death tolls from smoking, it is about time that even the Japanese (who allegedly cannot say "no") say "no" to this ongoing tragedy. Finally, if nonnicotine-based drugs were legalized with proper warning labels and instructions, the mass of people whose labor is now misallocated or not used could avoid premature death caused by the consumption of legal narcotics and also possibly become engaged in economically productive activities. - --- MAP posted-by: Terry Liittschwager