387: Tom Wainwright | How to Run a Drug Cartel

Interdiction

Tom Wainwright argues that focusing on the demand side of drug consumption is more effective than supply-side interdiction. He explains that efforts to interrupt supply, especially early in the chain, have minimal impact and often result in locking up numerous small-time dealers 1. Instead, investing in education and treatment for addicts can significantly reduce drug consumption 1. Wainwright compares the current approach to trying to increase the price of paintings by raising the cost of paint, highlighting its inefficiency 2.

If you spend the money on trying to reduce demand for these drugs, by educating young people, to take fewer drugs, to treat addicts so that they can reduce that consumption, you do end up having a much bigger impact.

--- Tom Wainwright

Jordan Harbinger adds that interdiction efforts before the US border are not as effective as hoped, emphasizing the need to target demand instead 2.

   

Local Threats

Wainwright shares his harrowing experiences while researching drug cartels, including wearing a GPS device to meetings with cartel leaders. He notes that the real dangers are faced by local journalists who live in these violent areas and report on the cartels 3. Harbinger recounts a story of helping a journalist escape cartel threats, highlighting the extreme measures needed to ensure safety 4.

The real high risks are really faced by the Mexican journalists. They're the ones who often are placed at greatest risk because they're the ones who actually have to live in these cities permanently.

--- Tom Wainwright

Wainwright also discusses the extortion practices in cities like Juarez, where cartels levy fees on local businesses to fund their battles 4.