

387: Tom Wainwright | How to Run a Drug Cartel
Aug 6, 2020
Tom Wainwright, a writer at The Economist and author of Narconomics, shares his striking insights on the drug trade as a business. He discusses how drug cartels utilize corporate strategies like branding, franchising, and social responsibility while exploring the economic dynamics shaping their operations. Wainwright also recounts his harrowing experiences investigating these cartels, including the chilling moment he met a drug lord while wearing a GPS device. Dive into the surprising parallels between cartels and legitimate businesses, and discover the complexities of their economic impact.
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Drug Cartels as Businesses
- Drug cartels operate like businesses, motivated by profit.
- Understanding their business model is key to combating them.
Inflated Drug Values
- Media often inflates the value of drug seizures by using retail prices.
- Wainwright gives the example of a 100-ton marijuana seizure wrongly valued at $0.5B.
Targeting Supply
- Interdiction efforts are less effective early in the supply chain.
- Doubling coca leaf cost barely affects the final cocaine price.