leaving mamashouse
TRANSCRIPT
Moving Out of Mama’s
House?
Freakonomics Chapter 3:
Why Do Drug Dealers Still Live With Their Moms?
High School Football Player Pro Football Player
average of $1.4M per year$0
Joe Montana
Street Dealer Drug Lord/Kingpin
Pablo Emilio Escobar Gaviria
$3/hour$1m - $200m+ per
year
Both Live With Mommy
a chance to...
Make it
B$G
CrackThen:
MethNow:
CheapPotentBang for buck
CheaperMore potent
More bang for buck
and...
V
lacitrentegratio
n
Coca: Horizontal integration
Production
Transportation
Sales
Meth: Vertical integration
Can be made anywhereMade by common chemicals
Eliminates need from supplierQuality control
No longer transporting over several borders
Less product seized
Control of distribution
No middle menLess risk
More Control
MORE PROFIT
Markets
Regular People
Famous People
Famous People
QualityChe
ap
Supply and Demand
Demand for quality
Quality = Purity = Potency
2007:
2011:
39%
90%
Crack on Steroids
August 28, 2012
Man Stabbed in arm
http://sfappeal.com/news/2012/08/fight-over-meth-ends-with-taser-shock-stabbing.php
Argument over quality of meth
War on Drugs
Government involvement
More Risk
Higher Prices
More Seizure
Price
Quantity
Supply
Demand
Price
Quantity
Supply
Demand
Gov involvement
2010 - 6,768 makeshift labs
discovered
Price
Quantity
Supply
Demand
Surplus
What about Moving Out of Mama’s
House?
Make it
BIG
Probably Still Living with Mom
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http://nymag.com/news/features/2007/profit/32888/>. "The Current Status of the Methamphetamine Epidemic." The Current Status of the
Methamphetamine Epidemic. N.p., n.d. Web. 18 Jan. 2013. <http://carnevaleassociates.com/meth_2011>.
"Massachusetts." The Republican. N.p., 11 Oct. 2012. Web. 18 Jan. 2013. <http://www.masslive.com/news/index.ssf/2012/10/mexican_drug_cartels_flooding.html>.
"Methed Up." The Economist. N.p., 24 Mar. 2012. Web. 14 Jan. 2013. <http://www.economist.com/node/21551026>.
Shafer, Jack. "What the Press Didn't Learn from the Last Drug Panic." Slate Magazine. N.p., 23 Aug. 2005. Web. 18 Jan. 2013. <http://www.slate.com/articles/news_and_politics/press_box/2005/08/crack_then_meth_now.html>.
Smith, Nick. "The Economics of Drugs." Stuff. N.p., 1 Mar. 2010. Web. 18 Jan. 2013. <http://www.stuff.co.nz/business/3203328/The-economics-of-drugs/>.
Thornton, Mark. "The Ludwig Von Mises Institute." What Explains Crystal Meth? Ludwig Von Mises Institute, 20 Jan. 2011. Web. 14 Jan. 2013. <http://mises.org/daily/4971>.
Yglesias, Matthew. "Could Walter White Really Gain an Edge by Selling Premium Drugs?" Slate Magazine. N.p., 17 Sept. 2012. Web. 18 Jan. 2013. <http://www.slate.com/articles/business/moneybox/2012/09/breaking_bad_s_blue_sky_meth_would_addicts_really_pay_more_for_higher_quality_.html>.