Reefer Madness: Sex, Drugs, and Cheap Labor in the American Black Market [Hardcover]

 

 

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Free markets are a myth. Well functioning markets depend on a complex alignment of public and private values, culture and laws. When these causes are not aligned, the model breaks down. One measure of market malaise, if not social malaise, is the size of black markets in the economy.

In Reefer Madness, Eric Schlosser estimates that black markets in the U.S.A. are about 5% to 10% of the total economy. In less developed economies or transitional economies such as Russia, black markets represent 40% or more of the total economy.

Why is this of concern? According to Schlosser, black markets undermine government and democracy, both in respect and revenue, creates criminals of both producers and consumers of black market products and services, and creates unnecessary spending on litigation, the courts and prisons. Almost all Americans are guilty using black markets, even if it is paying the plumber or other trade in cash to evade taxes.

Schlosser explains his thesis with three cases studies: marijuana, illegal immigrants, and the porn industry.

With the marijuana black market, he effectively argues there is limited evidence that marijuana consumption is harmful, and that many people consume it. Indeed, it is difficult to make a case that it is any worse, and possibly better, for people than alcohol, which is legal. The greater harm has come from overzealous prosecution of dealers and users, filling prisons in record numbers. However, armed robbery and murder often carry lesser sentences. Current laws and prosecution of marijuana use are an abject failure. Both consumption and production have increased over the decades.

Marijuana is arguably the largest cash crop in the United State. Given the disconnect between public and private values, would not an alternative policy, such as decriminalizing the use of marijuana, regulating its use in the same manner as alcohol make some sense. Schlosser makes a clear case that it would produce a social net benefit, increasing tax revenues, reducing court cases, and start emptying prisons. There would also be less tangible benefits such as greater respect for the governing authority.

Illegal immigration is the second case study, focusing on the black market for Mexican labor in the California agricultural community. Schlosser shows how cheap illegal Mexican labor has distorted producing strawberries, ostensibly to California's advantage in the short term. But in the long term the effect will be painful, because the farming community is so far behind now in adopting new technology, because of the cheap labor. As well, cheap foreign labor has reduced the local standard of living and increased black markets, which some experts estimate to be as high as 30 percent in the LA area.

The long term effect if continued will be to create a homegrown peasant economy. The solution does not lie in building fences or other restraints to immigration. The most effective policy choice according to Schlosser is developing and ensuring fair labor practices, including a decent minimum wage for all workers, whether they are immigrants or not.

The porn industry over the past century is the subject of the third case study. Indeed, Schlosser provides a thumbnail history back to Comstock's antiporn crusades in the 19th century. The major focus is on the last 50 years and the remarkable cultural shift in American attitudes toward porn during that period. Schlosser focuses on the story of Reuben Sturman, the dark genius of the modern porn industry, and his battles with the government. While Sturman eventually goes to jail for tax evasion, his victories in the courts in fighting charges of porn pave the way for the modern porn industry.

Sturman's story also highlights the role of the courts in reflecting cultural change in community standards over the decades, a role well suited to judicial interpretation rather than legislative or administrative law. Arguably, the black market in porn is much less than it otherwise would have been without these decisions.

While Schlosser suggests that reason will win the day, his three case studies are less than reassuring. It seems irrationality, ignorance, and inertia play a powerful role, especially for marijuana and immigration. Problems that can extend for decades and generations eventually undermine the integrity if not the foundation of a society founded on the principles of free market democracy.

Schlosser's book is a must read for anyone interested in the health of their democracy and market system.

This book was a big disappointment. I was eager to open the cover after the tremendous Fast Food Nation, but this book is just a sad set of diatribes on 3 unreleated topics: marijuana, strawberry picking, and pornography.

Much space is wasted on the first topic describing the crimes and severe sentencing for a pot trafficer, as if this is news to anyone. Why not write about the millions of small neighborhood dealers, the casual and everyday users (including some state court judges), the cartels, the local vice squads, etc.? Apparently this would have required Eric to do some actual field research, rather than a few jailhouse interviews. We don't need to spend $24 to learn that the mandatory minimum sentences have filled prisons with nonviolent narcotics offenders.

The second topic, though purportedly related to the first by virtue of the fact that the illegal aliens who pick strawberries are part of the underground economy, is in fact a completely separate piece that is more relevant to the issues raised in Fast Food Nation. Yes, the living conditions for immigrant farmworkers are far from ideal, but is this really news? And is this really a problem? The workers make 10x the amount they could make in Mexico, and we get cheaper food products.

The third topic is again unreleated to the first two, and serves mainly to provide a biography of the man responsible for distributing pornographic magazines through adult bookstores. Not only is the rendition dull, but it is of little relevance in today's internet driven industry. Why not write about the people who create the internet sites, the people who act and model for adult print/internet/dvd materials, the people who work in the clubs found in all major cities, and the amateurs who are bypassing the system by hawking their wares directly to the public, not to mention the people who work in the prostitution industry (both illegal aliens and abused kids)? Again, this would apparently Eric to conduct some actual field research as opposed to a few interviews with the IRS agents.

Do not under any circumstances pay full price for this book, it is not anywhere near the quality of Fast Food Nation. Eric, we deserve better.

A very good collection of 3 essays that each probably deserve a book of their own by this writer. The Strawberry Fields on Agriculture chapter in particular was the most interesting and insightful to me. It is discouraging and disappointing that people can go to jail for multi-year sentences for marijuana possesion and have longer terms than people convicted of assult

Strikes me that the easiest way to take on the undeground economy is to eliminate cash - make all transactions either stored value cards, credit cards, debit cards or cheque cards....

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5.0 out of 5 stars more, please
I now know more about drug and obscenity laws than I ever imagined I'd need the brain cell storage to accommodate ... and that's a peculiarly good thing. Read more

Published on July 16 2004 by Cherie Priest

5.0 out of 5 stars Changed my perspective!
Eric has done it again. I read his last book Fast Food Nation, and was impressed with his depth and skill at writing. This book was even better. Read more

Published on July 6 2004 by Benjamin J. Snyder

5.0 out of 5 stars An Informative Potpouri of Topics
Having read the author's previous book, and holding the same reservations that anyone would have about follow-ups (that it won't be nearly as good as the first outing), I picked... Read more

Published on Jun 17 2004 by Gregory McMahan

4.0 out of 5 stars Incredible
Schlosser scores another hit - if you haven't read his Fast Food Nation there is something wrong with you - with this missive about 3 disparate subjects. Read more

Published on Jun 15 2004 by P. Smy

4.0 out of 5 stars Good Book, I enjoyed it.
This book caters to a varity of differnt readers in several differnt ways. For example: If your looking for factual information on the history of any of the three industries this... Read more

Published on May 18 2004 by Kimo

3.0 out of 5 stars Great essays, sub-par book
I agree completely with the other reviewers who say that this book is disjointed and not cohesive. Although each essay, taken separately, is thought-provoking and well-research,... Read more

Published on May 17 2004 by Cari Rich

3.0 out of 5 stars average reading
eric does a good job here of assemblying useful facts like the fact that 3 out of 4 100 dollar bills are used outside the US and explaining why this actually helps our economy... Read more

Published on May 13 2004 by N. Siefers

4.0 out of 5 stars Interesting Essays, But....
Eric Schlosser's Reefer Madness has three interesting essays in it, but I can't quite figure out why the three are in this book together. Read more

Published on May 4 2004 by Elizabeth Hendry

4.0 out of 5 stars Disjointed
It's really three separate books, or perhaps three magazine pieces. Each is an excellent piece of investigative journalism. Read more

Published on May 3 2004 by D. P. Birkett

4.0 out of 5 stars great book overall
this was a very informative and interesting book to read. i enjoyed it a lot. the only thing i didnt like was the "cheap labor" section, mainly b/c that is just not... Read more

Published on April 30 2004 by alyssa thomason

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