Before starting the report it is important to study three distinctive features of illegal drug markets. These are:
1. The role of imperfect and wrong information- it is true that sellers and buyers are unaware about the quality and quantity of drugs in a transactions,
2. Epidemics and contagion- the sudden speed with which drugs use can increase and the fact that it spreads through social contact,
3. The role of enforcement in affecting the price of drugs and the manner in which they are distributed. Simply it is related the law which opposes the drugs and their use.
On the basis of addiction, someone might said that drug demand is relatively inelastic or unresponsive to price. But the price elasticity of demand varies across drugs (heroin,
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The analytical emphasis of the supply and demand model is on prices and quantities, but this analytical emphasis does not mean that price is the most important empirical demand influence. The demand curve shows the relationship between quantity demanded and price keeping all other factors constant. When these factors change, then whole demand curve will shift. For example demand-side public policies, such as antidrug media campaigns, law enforcement measures that target users, changing attitudes toward intoxication and self-control, and economic factor like income and employment opportunities. Under the conventional view that drug demand is drug demand is relatively price inelastic, changes in these other influences are likely to be important explanations for observed variation in drug market over time and across geographic units particularly since some of them, especially tastes, can change rapidly. Demand-side policies seek to shift the demand curve down (left). All else being equal, such policies shift the equilibrium down the supply curve, resulting in a lower equilibrium price and a lower quantity of drugs consumed. If social harms associated with illegal drug use are positively related to the dollars spent on these substances (since these are criminal incomes), demand-side interventions are especially attractive because they induce favorable price and quantity effects, while supply-side interventions …show more content…
It was most powerful cartels in past.
La Familia Michoacana- It is based in the Michoacan state.
Los Zetas Cartel- It is comprised of former members of the Mexican military. Initially they worked as hit men for the Gulf Cartel, before becoming independent.
Sinaloa Cartel- It is know as the dominant drug trafficking organization in Mexico. It is headed by Joaquin “El Chapo” Guzman.
Tijuana/ Arellano Felix Cartel- It is based in Tijuana. Most of the Arellano Felix brothers have been killed.
How they work
There cross border flow of money and guns into Mexico from the U.S. has enabled well-armed and well-funded cartels to engage in violent activities
From December 2006 through July 2010, the Mexican government reported almost 30,000 deaths in Mexico resulting from organized crime and drug trafficking, with 9,635 murders in 2009 alone. In its fiscal year (FY) 2010 to FY 2016 strategic plan, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) reported that Mexico’s drug traffickers have turned aggressively to the United States as a source of guns and routinely smuggle guns from the United States into Mexico. There is fighting between several cartels. In short they work on killing people and acquiring the power over the
1. Chicago has compared him to Al Capone. He is rich, powerful, and one of the most dangerous men in Mexico. The great drug kingpin Joaqin “El Chapo” Guzman is the leader of the sinola cartel, the most powerful in Mexico. Recently escaped from the confines of a maximum security prison through a mile long tunnel which started at his shower.
Mexico has a weak judicial and police institution and a large economy with consumers. Mexico the hub of one of the world's most sophisticated drug networks. For decades, drug trafficking organizations used Mexico's entrenched political system to create a system-wide network of corruption that ensured distribution rights, market access, and even official government protection for drug traffickers. Officers could make an exchange for money to be able to let people pass by with the drugs or trafficking that they are participating in. This is a reason why the drug distribution is so big in Mexico.
The Sinaloa drug Cartel, is the largest and most powerful drug trafficking organization in the Western Hemisphere. The Sinaloa drug Cartel was founded in the Mid-1980’s and its membership; operatives in seventeen Mexican states and as many as fifty countries with criminal activities like drug trafficking and money laundering. It has grown its reach far beyond the Mexican border and is now believed to be the most powerful and widest-reaching drug importer in the United States. The coalition 's members rely on connections at the highest levels and is led by Mexico 's most powerful drug lord Joaquin Guzman alias “El Chapo” who recently escaped from a maximum security prison in Mexico. The state of Sinaloa has long been a center for contraband
Through working for drug lord Héctor "El Güero" Palma and Félix Gallardo, Guzmán swiftly moved up the ranks after the leaders of the Guadalajara Cartel approved of Guzmán’s business strategies which included execution of smugglers who failed to deliver drug shipments on time. Utilizing these tactics and connections with other drug lords, Guzmán founded his own cartel which he expanded to create Mexico’s largest and wealthiest cartel. Although Guzmán is known as a pragmatic and ruthless leader, many see him as a keeper of peace and a helper to the people. Ordinary people see him as a leader who has
Though marijuana is not the only product being distributed in the Cartel, it is a gives the Cartel a profit of over 35%. A figure head similar to Al Capone for the drug trafficking industry is El Chapo. Joaquín "El Chapo" Guzmán the former president of El Salvador, began to lead the drug Cartel in the 1990’s. He would soon become the cause of personally 2000 or 3000 deaths by his own order alone. El Chapos career was finally ended recently when he was recaptured January 8, 2016.
Nowadays it seems like legal drugs are more expensive than illegal ones. This dilemma occurs because the pharmaceutical industry affects the economy significantly. Although the United States is a mixed market economy, there are instances where the economy seems like a free market economy. A free market economy allows companies to determine the prices of goods free from government intervention. The pharmaceutical industry, despite several regulations set by the food and drug administration, is a free market economy.
The Mexican cartel first started in the 60s and 70s with the Guadalajara cartel. The Guadalajara cartel got into some issue in the mid-1980s by kidnapping, torturing and murdering a U.S DEA agent Enrique Camarena. This event made the U.S government energized and focused on the Guadalajara cartel, which then led them to arrest and break up the Guadalajara cartel after the U.S government broke up the Guadalajara cartels leader Miguel Angel Felix Gallardo aka El Padrino or The Godfather divided his turf and fiefdom into various sectors. In 1989 Seven months after taking office veteran drug warrior George H.W. Bush made his first televised addressed to the nation “All of us agree that the gravest domestic threat facing our nation today is drugs”.
Richard Nixon implemented the Drug Enforcement Committee also known as the DEA in 1973, to combat the transport and trafficking of drugs and to enforce drug control. Seven divisions in the organization report to the administrator, and they all work in harmony to fight the drug trade. A big problem the DEA is currently facing is the escape of notorious drug lord, Joaquin Guzmán, also known as “El Chapo.” El Chapo is the famed leader of the Sinaola cartel, which his uncle was Pedro Avilés Pérez pioneered. He is the most wanted man in Mexico and the DEA is currently offering a reward of five million USD for information leading to his arrest.
Because the cartels were focused on their shipping cocaine, the violence that they emitted was focused on the drug trade. Looking again at the issue of extradition, one can see how the acts of violence committed during this period were motivated by their involvement in the drug trade, allowing them to focus their violence. Los Extraditables carried out a campaign of assassinations—which included, judges, political figures, policemen, and many more—and bombings in order to prevent the possibility of extradition. These acts of violence were focused on stopping extradition and not necessarily to overthrow the current government or to push a political agenda. The cartels were able to employ sicarios and bombs to take out political figure that would work against them.
Introduction The CJNG, which stands for Cartel de Jalisco Nueva Generacion or the New Generation of the Jalisco Cartel is considered by US and Mexican officials as one of the most powerful and dangerous cartels in the world. CJNG have quickly expanded their operations in the last 5 years since they first proclaimed their existence via YouTube claiming to be the Mata-Zetas (Killer of Zetas) and protectors of kidnappers and murders in the state of Jalisco. The rise of CJNG in part can be credited to the group taking advantage of the decline of Los Zetas and Knights Templar cartel as a result of President Pena Nieto’s campaign. Currently CJNG controls the production and distribution of narcotics in Jalisco, Nayarit, Colima, Veracruz and Michoacán.
"Here are the powerful Mexican drug cartels that operate in the US." Business Insider. Business Insider, 31 Jan. 2016. Web. 09 July 2017.
For example, agencies have been established with the sole intent to manage drug use and distribution and technology has been exclusively developed to detect the presence of drugs. Yet, evidence has indicated that such exhaustive efforts have been relatively unsuccessful. First, it has been assumed that drugs have perpetuated violence in society and based on this rationale, it was believed that by the suppressing the pervasiveness of drugs that incidents of violence would simultaneously diminish. However, reality has failed to align with the expectations that had initially been anticipated. Research findings have suggested that the decriminalization of drugs would result in a less adversarial drug market in which conflicts have tended to arise among dealers as well as between dealers and buyers (Common Sense for Drug Policy, 2007, p. 21).
El Chapo was one of the most infamous drug lords that didn’t have their voice heard. When El Chapo escaped from prison it was a raining night and he hijacked two cars. El Chapo Guzman states that his Sinaloa cartel isn’t a “top-down corporation but a federation of tens of thousands of criminals.” Out of those tens of thousands of criminals they’re farmers, smugglers, corrupt police officers, and accountants. In 2006, Mexican police reported 11,800 murders, which rose to 22,800 in 2011, and dropped back to 15,600 in 2014.
If there was an open market for drugs and Americans’ were educated on the effects drugs can have on their bodies, the monopoly for drugs would rapidly decrease. Drugs are outlawed in America yet prohibition has never been successful in America. Anytime the government has tried to stop the distribution of a substance people have always jumped at the chance to make
Introduction Pablo Emilio Escobar arguably is seen as a leader in ambition, ruthlessness and at all costs and has become one of the wealthiest and most powerful violent criminals to ever exist (Biographay.com, 2017). The Netflix series Narcos accurately captures this in a thrilling two seasons from Escobar’s humble beginnings to his very last moments. The notorious drug dealer founded the Medellin Cartel and assumed responsibility for 80 percent of the cocaine output shipped to the U.S. (Biographay.com, 2017). Escobar was known in Columbia for sponsoring charity projects and soccer clubs, but as his power grew it had resulted in a terror campaign fueled on mass murder, greed and the ultimate struggle for power against the U.S. and Columbian Governments (Biographay.com, 2017). To Pablo Escobar the most important thing was cocaine and the money that it brought him.