Commodity Market Strong…For Cocaine
The Bush administration insisted its anti-drug efforts by federal law enforcement were succeeding because of reported spikes in the price of cocaine—an indicator that counter-narcotics raids were causing a shortage in the drug market. But the Washington Office on Latin America (WOLA) disputes this claim, arguing that while cocaine prices have fluctuated many times over the years, the price overall has been going down since the 1980s. The price per gram in 1981 was more than $600, whereas in 2007 it was down to $122—the lowest on record. This represents a drop of $15 a gram since 2002. WOLA relies on numbers crunched by the Obama administration and the RAND Corporation that demonstrate the downward trajectory of cocaine prices, and the fact that cocaine purity remains high.
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