Some Coca Economics

Tea made from the leaves of the coca bush is a safe and effective appetite suppressant. Even though the much demonized cocaine is the active ingredient, coca tea has a long history of being safe and healthful. There is also no danger for first time users. When the Pope visited Columbia and drank coca tea in order to relieve his altitude sickness, he did not grab a gun and start shooting people. Likewise, he did not go on a rampage of rape, pillage, and plunder.

By contrast, the government-licensed drug industry has produced and sold many diet drugs which were later recalled because they caused organ (heart, liver, and kidney) damage in consumers including deaths. So, why do consumers buy expensive, potentially dangerous diet drugs when there is a safe, effective, and much cheaper alternative? Because consumers are not free to choose. People are not free to purchase coca tea because cocaine is illegal. And, coca growers are not allowed to sell their produce in an open market. As a result of illegalization, the Prescription Diet Drug Industry is protected from competition by armies of armed government agents.

In a free market where individuals are free to produce what they want and trade with whomever they want, a cup of coca tea would cost only a few cents. The Prescription Diet Drug Industry would be put out of business because no one would buy their expensive and often dangerous products. No one would pay several dollars for a potentially dangerous, inferior product if they could buy a safe and more effective product for several cents.

One estimate is that the PDDI is a ten billion dollar per year industry. Consumers of prescription diet drugs pay this money to government-licensed drug producers and the licensed medical profession for prescriptions. What would happen to this money in a free market? About 99% of that ten billion would stay in the pockets of the consumers where they could save it or spend it other goods and services. The remaining one percent or one hundred million dollars ($100,000,000) per year would go to coca growers.

Rick Eramian   freeman@shore.net