The lovely tale of Liquor
during Lockdown and before
At every stage, addiction is driven by one of the most powerful, mysterious, and
vital forces of human existence. What drives addiction is longing —
a longing not just of brain, belly, or loins but finally of the heart.
Cornelius Platinga
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The use of alcohol in India for drinking purposes dates back to somewhere between 3000 and 2000 BC. An alcoholic beverage called Sura which was distilled from the rice was popular at that time in India for common men to unwind at the end of a stressful day. . Yet the first mention of Alcohol appears in Rig Veda (1700BC). It mentions intoxicants like soma and prahamana. Although the soma plant might not exist today, it was famous for delivering a euphoric high. It was also recorded in the Samhita, the medical compendium of Sushruta that he who drinks soma will not age and will be impervious to fire, poison, or weapon attack. The sweet juice of Soma was also said to help establish a connection with the gods. Such was the popularity of alcohol. Initially used for medicinal purposes, with time it evolved and became the beverage that brought life to social gatherings, and eventually consuming alcohol has become a habit for many.
With such a rich history of not just humans but also of the gods,
what is a worldwide pandemic to stop anybody from drinking?
. . .
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According to a report released by the World Health Organisation (WHO) in 2018, an average Indian drinks approximately 5.7 liters of alcohol every year. In a population of casual and excessive drinkers, with the shutters of liquor stores down, it must have been extremely difficult for “certain” people to survive lockdown. In the first two phases of lockdown, the desperation had quadrupled prices of alcohol in the Grey Market of India. Also, According to Google Trends, online searches for “how to make alcohol at home” peaked in India during the fourth week of March, which was the same when the lockdown was announced. As a consequence, a few people died drinking home-brewed liquor. People committed suicide due to alcohol withdrawal syndrome. Owing to the worsening situation and to reboot the economy, some states decided to open licensed liquor stores in the third phase of the COVID-19 Pandemic lockdown in India. This decision was the worst best decision the state governments could take. The kilometer-long queues in front of liquor stores were evidence that a pandemic can turn your life upside down yet your relationship with alcohol cannot move an inch.
The love in the hearts of those who are addicted was explicit. We might have seen addiction, we might have witnessed desperation but what happened in the month of May was madness, not just in terms of the way people pounced but also in the way the government earned. According to a report by Hindustan Times, on the first day of the third phase of Lockdown, the Indian state of Uttar Pradesh recorded a sale of over Rs 100 Crore from liquor. On the second day of the reopening of Liquor stores, Karnataka reported sales of 197 crores in a single day which was the largest ever. Eventually, the prices of Liquor were hiked to 100% to discourage people from drinking.
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There was a special corona fee that was imposed in Delhi by Chief Minister Arvind Kejriwal. A 70% corona fee was imposed in Delhi, yet the sales did not drop. The entire situation was a disaster for the law enforcement officers, social distancing was easily abandoned and a basic code of conduct was happily violated. Despite the chaos created, the states continued to collect revenues. Home delivery of alcohol was allowed in Maharashtra and e-tokens were sold in Delhi.
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Demand for liquor is inelastic which means that
the sale of alcohol is not much responsive to change in prices.
In general, since alcohol policy is a state subject in India, revenue from Liquor is a cash cow for state governments. In 2018 and 2019, four states collectively collected about 20,000 crores in taxes from the sale of liquor. As much as the state earns from the sale of Liquor it is undoubtedly, a threat to the Economy. Consumption of alcohol has dire health consequences. When a person consumes an alcoholic beverage, there is a rise in BAC because of which there is a gradual and progressive loss of driving ability because of an increase in reaction time, overconfidence, degraded muscle coordination, impaired concentration, and decreased auditory and visual acuity. This is known as drunken driving. (V. M. Anantha Eashwar, 2020) Drunken driving is the third biggest cause of road accidents and over speeding in India. Road accidents are not it; alcoholism causes sleep problems, heart, and liver issues. Also, it is not about an individual’s life, it ruins the lives of all people concerned.
Addiction also causes economic loss. In 2000, Vivek Benegal and his team assessed 113 patients admitted to a special de-addiction service for alcohol dependence. They found that
the average individual earned a mean of ₹1,661 but
spent ₹1,938 per month on alcohol, incurring high debt.
They also found that 95% did not work for about 14 days in a month. They concluded that it led to a loss of ₹13,823 per person per year in terms of foregone productivity. A more recent study, Health Impact and Economic Burden of Alcohol Consumption in India, led by Gaurav Jyani, concluded that alcohol-attributable deaths would lead to a loss of 258 million life-years between 2011 and 2050. The study placed the economic burden on the health system at $48.11 billion, and the societal burden (including health costs, productivity loss, and so on) at $1,867 billion. “This amounts to an average loss of 1.45% of the gross domestic product (GDP) per year to the Indian economy,” the study said. (Mint, 2020)
Setho ka Gaon
With each passing day, the ‘curtain of separation’ weighs down on the women of Afghanistan, paving the way for tyranny to thrive.
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THE NARCONOMICS
Drug dealing, often romanticized for its association with wealth and glamour, paradoxically reveals a different reality. Contrary to popular belief, a considerable number of drug dealers still reside with their parents. This intriguing phenomenon has captured the attention of economists and researchers, prompting an in-depth exploration of the intricate economics behind it. This article aims to delve into the underlying reasons, drawing insights from various studies and contexts. Drug dealing, akin to any economic activity, operates on the principles of supply and demand, incentives, and competition. However, the perception that drug dealers lead opulent lives does not align with the truth. To elucidate this intriguing topic, let us examine diverse studies that shed light on the matter.
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The Chicago Perspective
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A notable study conducted by economists Steven Levitt and Sudhir Venkatesh in Chicago during the crack cocaine boom of the 1990s provides valuable insights into the economics of drug dealing. Venkatesh immersed himself in a crack-dealing gang and meticulously analyzed their financial transactions. Surprisingly, the study revealed that the majority of drug dealers in Chicago resided with their mothers, despite the inherent risks involved. The gang's hierarchical structure mirrored that of a typical business organization. Leaders earned substantial incomes, while foot soldiers at the bottom received meagre wages, averaging only $3.30 per hour. Despite the dangers and low pay, the slim chance of ascending the hierarchy motivated individuals to endure these perilous jobs.
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The Managua Perspective
To acquire a broader understanding of the economics of drug dealing, we turn to a study that contrasts the findings from Chicago with those from Managua, Nicaragua. The research conducted in Managua highlights the significance of contextual and labor market differences in shaping the economic outcomes of drug dealers. Unlike Chicago, drug dealers in Managua were found to earn significantly more than the local median wage. The decentralized nature of the drug trade in Nicaragua and the specialization within drug dealing contributed to the higher earnings of individuals involved in this illicit activity. Furthermore, the distinct political economies of the United States and Nicaragua played a role in creating these disparities. These findings challenge the assumption that all drug dealers face uniform economic conditions and outcomes.
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Economic Incentives and the Tournament Theory
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Individuals may enter the drug trade due to financial incentives and perceived opportunities for wealth. While the reasons behind this choice are multifaceted, for the purpose of this article, we will closely examine the economic incentives. The concept of a tournament provides valuable insights in this regard. Drug dealing, similar to pursuing a career in Hollywood or professional sports, can be viewed as a tournament in which the top positions yield immense financial gains. Although the likelihood of reaching the top in the drug trade is slim, the allure of potential wealth, power, and status compels individuals to undertake this risky occupation. The hope of one day achieving success in this highly competitive field keeps them engaged, despite the low wages and dangers involved.
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Challenging Conventional Wisdom and Embracing Economic Realities
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The prevailing wisdom surrounding drug dealing often perpetuates misconceptions about the financial rewards involved. However, the reality is that only a fraction of drug dealers enjoy substantial incomes, while the majority struggle to make ends meet. Advertising and media portrayals have significantly influenced this conventional wisdom. Companies such as Listerine successfully created new "diseases" like Halitosis to market their products. Similarly, media portrayals of drug dealers as prosperous individuals have contributed to misconceptions about their economic circumstances. To gain a deeper understanding of the economic realities, it is crucial to challenge and critically evaluate such prevailing wisdom.
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The Hidden Dangers of Drug Dealing
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Beyond the economic aspects, it is essential to acknowledge the inherent dangers associated with drug dealing. Engaging in illegal activities exposes individuals to significant risks, including violence, extortion, and imprisonment. Studies suggest that the risk of being killed as a member of a drug gang can be five times higher than that of timber cutters, which is considered the most dangerous job in the United States. Considering the combination of low wages, high risks, and the illegal nature of the trade, it becomes evident why drug dealers continue to live with their parents. The limited financial gains, coupled with the potential loss of life and liberty, make it challenging for individuals to establish independent living arrangements.
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The Economic Impact of Drug Dealing
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The economic implications of drug dealing extend beyond the individual level. The illegal drug trade has significant consequences on society, including increased crime rates, strained public resources, and the perpetuation of poverty in affected communities. Understanding the economic dynamics of drug dealing can inform policymakers and law enforcement agencies in developing effective strategies to combat this issue. Efforts to address the underlying economic factors that drive individuals into drug dealing, such as poverty and limited opportunities, may prove crucial in reducing the prevalence of this illicit trade. By focusing on economic development, education, and job creation, societies can provide alternative pathways for individuals who might otherwise resort to engaging in illegal activities.
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conclusion
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The economics of drug dealing reveal a complex and nuanced reality that challenges conventional wisdom. The majority of drug dealers do not live lavish lifestyles but instead struggle to make ends meet. Economic incentives, the tournament theory, and contextual factors play significant roles in shaping the outcomes of drug dealing. It is crucial to debunk misconceptions and understand the economic realities to develop effective strategies to address this issue. By addressing the underlying economic factors and investing in education and opportunity, societies can work towards reducing the prevalence of drug dealing and its associated social harms.
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In-Text:
An economic Analysis of a Drug-Selling Gang’s Finances
STEVEN D. LEVITT AND SUDHIR ALLADI VENKATESH
Freakonomics:
A Book by Stephen J. Dubner and Steven Levitt
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Gaurvi Sharma
Daulat Ram College,
Delhi University
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