Jacob Sullum | March 14, 2012
A new Stratfor primer on the illicit methamphetamine market cites some numbers that illustrate the risk premium associated with prohibition, which delivers big profits to murderous thugs all over the world:
Depending on the price of chemicals used—determined by the quantity of chemicals purchased and the legitimacy of the supplier—the cost of manufacturing 1 kilogram (2.2 pounds) of meth comes to anywhere between $150 and $4,000....According to the U.S. Department of Justice's National Illicit Drug Prices Mid-Year 2009 report, the wholesale market price for meth is $19,720 per kilogram while its street value is $87,717 per kilogram. Needless to say, this is a huge markup.
Stratfor on the Futility of the War on Meth - Hit & Run : Reason Magazine