The Shadow Economy

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Fairweather Pure
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The Shadow Economy

Post by Fairweather Pure »

http://www.guardian.co.uk/usa/story/0,1 ... 80,00.html

--I put some of the more intersting points in bold for you skimmers out there.--
Marijuana, pornography and illegal labour have created a hidden market in the United States which now accounts for as much as 10% of the American economy, according to a study. As a cash crop, marijuana is believed to have outstripped maize, and hardcore porn revenue is equal to Hollywood's domestic box office takings.

Despite laws that punish marijuana cultivation more strictly than murder in some states, Americans spend more on illegal drugs than on cigarettes. And despite official disapproval of pornography, the US leads the world in export of explicit sex videos, according to Reefer Madness: Sex, Drugs and Cheap Labour in the American Black Market, by Eric Schlosser.

Although the official American economy has been suffering a downturn, the shadow economy is enjoying unprecedented levels of success, much in the way that the prohibition period fuelled the illegal markets in the 30s. Schlosser found that three specific industries accounted for a major portion of this boom.

No aspect of farming has grown faster in the US over the past three decades than marijuana, with one-third of the public over the age of 12 having smoked the drug.

While the nation's largest legal cash crop, maize, produces about $19bn (£11.9bn) in revenue, "plausible" estimates for the value of marijuana crops reach $25bn. Steve White, a former coordinator for the US drug enforcement administration's cannabis eradication programme, estimates that the drug is now the country's largest cash crop.

Marijuana Belt


Schlosser writes: "Although popular stereotypes depict marijuana growers as ageing hippies in northern California or Hawaii, the majority of the marijuana now cultivated domestically is being grown in the nation's mid-section - a swath running from the Appalachians west to the Great Plains. Throughout this Marijuana Belt drug fortunes are being made by farmers who often seem to have stepped from a page of the old Saturday Evening Post."

Some of the most expensive crops are grown indoors on the west coast using advanced scientific techniques but the American heartlands account for the largest volume. Some estimates suggest 3 million Americans grow marijuana, although mostly for their own or their friends' use, but between 100,000 and 200,000 are believed to do so for a living.

The laws against the drug are strict. There were 724,000 people arrested for marijuana offences in 2001 and about 50,000 are in prison. Commercial growers can serve sentences far longer than those for murder, but the high risks appear to have had little effect on production or availability: 89% of secondary school students surveyed indicated that they could easily obtain the drug.

The annual number of hardcore video rentals in the US has risen from 79m in 1985 to 759m in 2001. Hardcore pornography in the shape of videos, the internet, live sex acts and cable television is now estimated to generate around $10bn, roughly the same amount as Hollywood's US box office receipts.

Americans spend more money at strip clubs than at Broadway, regional theatres and orchestra performances combined. The industry has mushroomed since the 70s, when a federal study found that it was worth little more than $10m.

Now the US leads the world in pornography; about 211 new films are produced every week. Los Angeles area is the centre of the film boom and many of those in the trade are otherwise respectable citizens.

Nina Hartley, a porn star, told Schlosser: "You'd be surprised how many producers and manufacturers are Republicans."

The majority of women in the films earn about $400 a scene. At the moment, there is a surplus of women in California hoping to enter the industry.

The internet has provided a fresh and profitable outlet. In 1997 about 22,000 porn websites existed; the number is now closer to 300,000 and growing.

More than a million illegal farmworkers are estimated to be employed in the US, with the average worker being a 29-year-old from Mexico.

Surplus labour


The total number of illegal immigrants is estimated at about 8 million and many are being paid cash in a shadow economy.

Many live in primitive conditions: a survey in Soledad, in the heart of California's agricultural territory, found that 1,500 of them, one-eighth of the town's official population, were living in garages. There are mutual economic benefits.

"Migrant work in California has long absorbed Mexican surplus labour, while Mexico has in effect paid for the education, health care and retirement of California's farmworkers," writes Schlosser. "Maintaining the current level of poverty among migrant farmworkers saves the average American household around $50 a year."

The advantages to the employer are clear, most notably in LA county, where an estimated 28% of workers are paid in cash.

Schlosser believes that the shadow economy will continue to thrive as long as marijuana and pornography remain illicit.

"A society that can punish a marijuana offender more severely than a murderer is caught in the grip of a deep psychosis," he concludes. "Black markets will always be with us. But they will recede in importance when the public morality is consistent with our private one. The underground is a good measure of the progress and the health of nations. When much is wrong, much needs to be hidden."

· Reefer Madness: Sex, Drugs and Cheap Labour in the American Black Market by Eric Schlosser, published by Houghton Mifflin
I honestly think our leaders are almost completely out of touch with the citizens of this country. Their's is a view of perception, our's is a view of reality. Interesting article anyway. God I love porn.
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Post by Lalanae »

I agree Fairweather. I am 100% anti-censorship and believe that in a consumer-driven society people should be able to buy what they want unless it violates the rights of others or endangers the well-being of children. I find drug use a detestable character weakness, but I also believe that drug decrimilization will alleviate a lot of our country's economic woes. The real enemies in the "drug war" are the scum making money off the industry (from drug lords, to corner pushers to DEA officials), not the poor saps who feel they need drugs for whatever reason.

It shouldn't be up to the government to tell people what is moral and immoral and what they can and can't do to their own bodies.
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Post by Fallanthas »

It shouldn't be up to the government to tell people what is moral and immoral and what they can and can't do to their own bodies.
So where do you draw the line? When do such things stop affecting "your body" and start affecting those around you?
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Post by Voronwë »

might as well tax the shit out of pot sales, might help pay for the next regime change....
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Post by Fairweather Pure »

I saw a T-shirt the other day that said "Fight Terrorisim, Grow Your Own!" and I thought that was rather clever.
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Post by Voronwë »

Fairweather Pure wrote:I saw a T-shirt the other day that said "Fight Terrorisim, Grow Your Own!" and I thought that was rather clever.
home grown is the best shit anyways



i'm told...
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Re: The Shadow Economy

Post by masteen »

Fairweather Pure wrote:God I love porn.
Who doesn't?
Voronwë wrote:home grown is the best shit anyways


i'm told...
Riiiight.
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Post by Vaemas »

You're welcome to do anything you want in your own home. But you set foot outside your house and affect someone else's life, then its another matter. Want to smoke pot? Go right ahead...in your own home. Want to get piss-ass drunk? Go for it...in your own home.

It's only when your actions affect my life, the lives of my family, the lives of my friends that I care. And until you've been affected, you won't begin to understand.

Feel free to legalize marijuana, but you get caught smoking it on the job or operating a vehicle, then face the penalties, just like with alcohol. We're adults (most of us) and make our own choices in life. As long as those choices affect only you, we're OK.
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Post by Lalanae »

Fallanthas wrote:
It shouldn't be up to the government to tell people what is moral and immoral and what they can and can't do to their own bodies.
So where do you draw the line? When do such things stop affecting "your body" and start affecting those around you?
See Vaemas' post, so I don't reiterate. Its very clear where to draw the line.
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Post by Fallanthas »

Mmm, change it to "when your actions can be shown to be affecting the life of another" and I can go with that.

Someone wants to kill themselves with paint thinner, I call that natural selection. I couldn't in good conscience support the legalization of anything without a proviso that when your stupidity affects another you can't be punished, though.
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Post by Sylvus »

Fallanthas wrote:Mmm, change it to "when your actions can be shown to be affecting the life of another" and I can go with that.

Someone wants to kill themselves with paint thinner, I call that natural selection. I couldn't in good conscience support the legalization of anything without a proviso that when your stupidity affects another you can't be punished, though.
Well yeah, I think it's pretty much inherent in the discussion that you would still be held accountable if it affected another person. There is little in our country that you can't be held accountable for if you infringe on someone else's rights. From not de-icing the ground that a pedestrian might walk across to brewing your coffee too hot to drinking and driving.

I don't see why marijuana shouldn't be legal, and placed under very much a combination of restrictions that alcohol and cigarettes are currently placed under. No buying it if you're under a certain age, no operating heavy machinery while under its influence, no smoking it inside a public building where your smoke might pollute the air of those who don't want the second-hand smoke. Tax the shit out of it and quit arresting and incarcerating people needlessly in an effort to perpetuate an antiquated prohibition.

Sounds perfectly reasonable to me.
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Post by Dregor Thule »

I feel odd on this one, because while I'm anti-marijuana, I'm pro-legalization. I don't see it as much different than smoking other than it altering your actions, like alcohol. I'd draw the line at marijuana tho, no other narcotic gets to fall in that category IMO.

And yea, of course someone would still be held responsible for their actions. Legalizing marijuana isn't a license to be a menace. Just validates your right to be a moron to yourself.
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