Profits




Statistics about profits from the drug trade are largely unknown due to its illicit nature. An online report published by the UK Home Office in 2007 estimated the illicit drug market in the UK at £4–6.6 billion a year

In December 2009 United Nations Office on Drugs and Crime Executive Director Antonio Maria Costa claimed illegal drug money saved the banking industry from collapse. He claimed he had seen evidence that the proceeds of organized crime were "the only liquid investment capital" available to some banks on the brink of collapse during 2008. He said that a majority of the $352 billion (£216bn) of drug profits was absorbed into the economic system as a result:

"In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor...Inter-bank loans were funded by money that originated from the drugs trade and other illegal activities...there were signs that some banks were rescued that way".

Costa declined to identify countries or banks that may have received any drug money, saying that would be inappropriate because his office is supposed to address the problem, not apportion blame.

Though street-level drug sales are widely viewed as lucrative, a study by Sudhir Venkatesh suggested that many low-level employees receive low wages. In a study he made in the 1990s working closely with members of the Black Gangster Disciple Nation in Chicago, he found that one gang (essentially a franchise) consisted of a leader (a college graduate named J.T.), three senior officers, and 25 to 75 street level salesmen ('foot soldiers') depending on season. Selling crack cocaine, they took in approximately $32,000 per month over a six-year period. This was spent as follows: $5,000 to the board of twenty directors of the Black Gangster Disciple Nation, who oversaw 100 such gangs for approximately $500,000 in monthly income. Another $5,000 monthly was paid for cocaine, and $4,000 for other non-wage expenses. J.T. took $8,500 monthly for his own salary. The remaining $9,500 monthly went to pay the employees a $7 per hour wage for officers and a $3.30 per hour wage for foot soldiers. Contrary to a popular image of drug sales as a lucrative profession, many of the employees were living with their mothers by necessity. Despite this, the gang had four times as many unpaid members who dreamed of becoming foot soldiers.

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