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SunGard provides daily data on short interest by tracking the proxy variables based on borrowing and lending data it collects. Days to Cover DTC is the relationship between the number of shares in a given equity that has been legally short-sold and the number of days of typical trading that it would require to 'cover' all legal short positions outstanding.

For example, if there are ten million shares of XYZ Inc. Short Interest relates the number of shares in a given equity that have been legally shorted divided by the total shares outstanding for the company, usually expressed as a percent. If, however, shares are being created through naked short selling, "fails" data must be accessed to assess accurately the true level of short interest. Borrow cost is the fee paid to a securities lender for borrowing the stock or other security. However, certain stocks become "hard to borrow" as stockholders willing to lend their stock become more difficult to locate.

A naked short sale occurs when a security is sold short without borrowing the security within a set time for example, three days in the US. This means that the buyer of such a short is buying the short-seller's promise to deliver a share, rather than buying the share itself. The short-seller's promise is known as a hypothecated share. When the holder of the underlying stock receives a dividend, the holder of the hypothecated share would receive an equal dividend from the short seller.

Naked shorting has been made illegal except where allowed under limited circumstances by market makers. In the US, arranging to borrow a security before a short sale is called a locate. In , to prevent widespread failure to deliver securities, the U. Securities and Exchange Commission SEC put in place Regulation SHO , intended to prevent speculators from selling some stocks short before doing a locate.

More stringent rules were put in place in September , ostensibly to prevent the practice from exacerbating market declines. These rules were made permanent in When a broker facilitates the delivery of a client's short sale, the client is charged a fee for this service, usually a standard commission similar to that of purchasing a similar security. If the short position begins to move against the holder of the short position i.

If short shares continue to rise in price, and the holder does not have sufficient funds in the cash account to cover the position, the holder begins to borrow on margin for this purpose, thereby accruing margin interest charges. These are computed and charged just as for any other margin debit. Therefore, only margin accounts can be used to open a short position.

When a security's ex-dividend date passes, the dividend is deducted from the shortholder's account and paid to the person from whom the stock is borrowed. For some brokers, the short seller may not earn interest on the proceeds of the short sale or use it to reduce outstanding margin debt. These brokers may not pass this benefit on to the retail client unless the client is very large. The interest is often split with the lender of the security.

Where shares have been shorted and the company that issues the shares distributes a dividend, the question arises as to who receives the dividend. The new buyer of the shares, who is the holder of record and holds the shares outright, receives the dividend from the company. However, the lender, who may hold its shares in a margin account with a prime broker and is unlikely to be aware that these particular shares are being lent out for shorting, also expects to receive a dividend.

The short seller therefore pays the lender an amount equal to the dividend to compensate—though technically, as this payment does not come from the company, it is not a dividend. The short seller is therefore said to be short the dividend. A similar issue comes up with the voting rights attached to the shorted shares. Unlike a dividend, voting rights cannot legally be synthesized and so the buyer of the shorted share, as the holder of record, controls the voting rights.

The owner of a margin account from which the shares were lent agreed in advance to relinquish voting rights to shares during the period of any short sale. As noted earlier, victims of naked shorting sometimes report that the number of votes cast is greater than the number of shares issued by the company. Transactions in financial derivatives such as options and futures have the same name but have different overlaps, one notable overlap is having an equal "negative" amount in the position.

However, the practice of a short position in derivatives is completely different. Derivatives are contracts between two parties, a buyer and seller. Each trade results in a "long" buyer's position and a "short" seller's position. When trading futures contracts , being 'short' means having the legal obligation to deliver something at the expiration of the contract, although the holder of the short position may alternately buy back the contract prior to expiration instead of making delivery.

Short futures transactions are often used by producers of a commodity to fix the future price of goods they have not yet produced. Shorting a futures contract is sometimes also used by those holding the underlying asset i.

those with a long position as a temporary hedge against price declines. Shorting futures may also be used for speculative trades, in which case the investor is looking to profit from any decline in the price of the futures contract prior to expiration. An investor can also purchase a put option, giving that investor the right but not the obligation to sell the underlying asset such as shares of stock at a fixed price. In the event of a market decline, the option holder may exercise these put options, obliging the counterparty to buy the underlying asset at the agreed upon or "strike" price, which would then be higher than the current quoted spot price of the asset.

Selling short on the currency markets is different from selling short on the stock markets. Currencies are traded in pairs, each currency being priced in terms of another. In this way, selling short on the currency markets is identical to going long on stocks. Novice traders or stock traders can be confused by the failure to recognize and understand this point: a contract is always long in terms of one medium and short another.

When the exchange rate has changed, the trader buys the first currency again; this time he gets more of it, and pays back the loan. Since he got more money than he had borrowed initially, he makes money. The reverse can also occur. An example of this is as follows: Let us say a trader wants to trade with the US dollar and the Indian rupee currencies.

He returns Rs. One may also take a short position in a currency using futures or options; the preceding method is used to bet on the spot price, which is more directly analogous to selling a stock short. Short selling is sometimes referred to as a "negative income investment strategy" because there is no potential for dividend income or interest income.

Stock is held only long enough to be sold pursuant to the contract, and one's return is therefore limited to short term capital gains , which are taxed as ordinary income. For this reason, buying shares called "going long" has a very different risk profile from selling short. Furthermore, a "long's" losses are limited because the price can only go down to zero, but gains are not, as there is no limit, in theory, on how high the price can go.

On the other hand, the short seller's possible gains are limited to the original price of the stock, which can only go down to zero, whereas the loss potential, again in theory, has no limit.

For this reason, short selling probably is most often used as a hedge strategy to manage the risks of long investments. Many short sellers place a stop order with their stockbroker after selling a stock short—an order to the brokerage to cover the position if the price of the stock should rise to a certain level.

This is to limit the loss and avoid the problem of unlimited liability described above. In some cases, if the stock's price skyrockets, the stockbroker may decide to cover the short seller's position immediately and without his consent to guarantee that the short seller can make good on his debt of shares. Short sellers must be aware of the potential for a short squeeze. When the price of a stock rises significantly, some people who are shorting the stock cover their positions to limit their losses this may occur in an automated way if the short sellers had stop-loss orders in place with their brokers ; others may be forced to close their position to meet a margin call ; others may be forced to cover, subject to the terms under which they borrowed the stock, if the person who lent the stock wishes to sell and take a profit.

Since covering their positions involves buying shares, the short squeeze causes an ever further rise in the stock's price, which in turn may trigger additional covering. Because of this, most short sellers restrict their activities to heavily traded stocks, and they keep an eye on the "short interest" levels of their short investments.

Short interest is defined as the total number of shares that have been legally sold short, but not covered. A short squeeze can be deliberately induced. This can happen when large investors such as companies or wealthy individuals notice significant short positions, and buy many shares, with the intent of selling the position at a profit to the short sellers, who may be panicked by the initial uptick or who are forced to cover their short positions to avoid margin calls.

Another risk is that a given stock may become "hard to borrow". As defined by the SEC and based on lack of availability, a broker may charge a hard to borrow fee daily, without notice, for any day that the SEC declares a share is hard to borrow. Additionally, a broker may be required to cover a short seller's position at any time "buy in".

The short seller receives a warning from the broker that he is "failing to deliver" stock, which leads to the buy-in. Because short sellers must eventually deliver the shorted securities to their broker, and need money to buy them, there is a credit risk for the broker.

The penalties for failure to deliver on a short selling contract inspired financier Daniel Drew to warn: "He who sells what isn't his'n, Must buy it back or go to pris'n. In , the eruption of the massive China stock frauds on North American equity markets brought a related risk to light for the short seller.

The efforts of research-oriented short sellers to expose these frauds eventually prompted NASDAQ, NYSE and other exchanges to impose sudden, lengthy trading halts that froze the values of shorted stocks at artificially high values. Reportedly in some instances, brokers charged short sellers excessively large amounts of interest based on these high values as the shorts were forced to continue their borrowings at least until the halts were lifted.

Short sellers tend to temper overvaluation by selling into exuberance. Likewise, short sellers are said to provide price support by buying when negative sentiment is exacerbated after a significant price decline.

Short selling can have negative implications if it causes a premature or unjustified share price collapse when the fear of cancellation due to bankruptcy becomes contagious. Hedging often represents a means of minimizing the risk from a more complex set of transactions.

Examples of this are:. A short seller may be trying to benefit from market inefficiencies arising from the mispricing of certain products. Examples of this are. One variant of selling short involves a long position. The term box alludes to the days when a safe deposit box was used to store long shares. The purpose of this technique is to lock in paper profits on the long position without having to sell that position and possibly incur taxes if said position has appreciated.

Once the short position has been entered, it serves to balance the long position taken earlier. Thus, from that point in time, the profit is locked in less brokerage fees and short financing costs , regardless of further fluctuations in the underlying share price.

For example, one can ensure a profit in this way, while delaying sale until the subsequent tax year. investors considering entering into a "short against the box" transaction should be aware of the tax consequences of this transaction.

Unless certain conditions are met, the IRS deems a "short against the box" position to be a "constructive sale" of the long position, which is a taxable event. These conditions include a requirement that the short position be closed out within 30 days of the end of the year and that the investor must hold their long position, without entering into any hedging strategies, for a minimum of 60 days after the short position has been closed. The Securities Exchange Act of gave the Securities and Exchange Commission the power to regulate short sales.

The uptick rule aimed to prevent short sales from causing or exacerbating market price declines. Regulation SHO was the SEC's first update to short selling restrictions since the uptick rule in The regulation contains two key components: the "locate" and the "close-out".

The locate component attempts to reduce failure to deliver securities by requiring a broker possess or have arranged to possess borrowed shares. The close out component requires that a broker be able to deliver the shares that are to be shorted. This mechanism is in place to ensure a degree of price stability during a company's initial trading period.

However, some brokerage firms that specialize in penny stocks referred to colloquially as bucket shops have used the lack of short selling during this month to pump and dump thinly traded IPOs. Canada and other countries do allow selling IPOs including U. IPOs short. The Securities and Exchange Commission initiated a temporary ban on short selling of financial stocks from 19 September until 2 October Greater penalties for naked shorting, by mandating delivery of stocks at clearing time, were also introduced.

Some state governors have been urging state pension bodies to refrain from lending stock for shorting purposes. In the UK, the Financial Services Authority had a moratorium on short selling of 29 leading financial stocks, effective from GMT on 19 September until 16 January Between 19 and 21 September , Australia temporarily banned short selling, [44] and later placed an indefinite ban on naked short selling.

Advocates of short selling argue that the practice is an essential part of the price discovery mechanism. Such noted investors as Seth Klarman and Warren Buffett have said that short sellers help the market. Klarman argued that short sellers are a useful counterweight to the widespread bullishness on Wall Street, [54] while Buffett believes that short sellers are useful in uncovering fraudulent accounting and other problems at companies. Shortseller James Chanos received widespread publicity when he was an early critic of the accounting practices of Enron.

Commentator Jim Cramer has expressed concern about short selling and started a petition calling for the reintroduction of the uptick rule. Wright suggest Cramer exaggerated the costs of short selling and underestimated the benefits, which may include the ex ante identification of asset bubbles. Individual short sellers have been subject to criticism and even litigation.

Manuel P. Asensio , for example, engaged in a lengthy legal battle with the pharmaceutical manufacturer Hemispherx Biopharma. Several studies of the effectiveness of short selling bans indicate that short selling bans do not contribute to more moderate market dynamics. Snow, based on an in-depth cross-industry study of a sample of large corporations, proposed a detailed scheme using four categories: [90] [91]. Marketing warfare strategies are competitor-centered strategies drawn from analogies with the field of military science.

Warfare strategies were popular in the s, but interest in this approach has waned in the new era of relationship marketing. An increased awareness of the distinctions between business and military cultures also raises questions about the extent to which this type of analogy is useful. In the s, Kotler and Singh developed a typology of marketing warfare strategies: [93].

Marketing strategy and marketing mix are related elements of a comprehensive marketing plan. The 4P's of the marketing mix Price, Product, Place and Promotion represent the tools that marketers can leverage while defining their marketing strategy to create a marketing plan. From Wikipedia, the free encyclopedia. Process that allow organization to concentrate limited resources on greatest opportunities. This article has multiple issues.

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Editing help is available. Further information: Scientific management. Further information: Strategic management. Further information: Porter's generic strategies. Further information: Resource-based view.

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Further information: Strategy dynamics. Asymmetric competition Brand management Business model Business triage Conditional rebate Corporate anniversary Customer engagement First-mover advantage Marketing Market segmentation Multi-domestic strategy Pricing strategies Right-time marketing Strategic planning Social media. The Strategic Marketing Plan Audit 2nd ed. Cambridge Strategy Publications Limited. ISBN OCLC Archived from the original on May 6, Retrieved May 5, Journal of Business Research.

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CiteSeerX Journal of Futures Studies. Strategic Management Journal. Competitive Strategy: Techniques for Analyzing Industries and Competitors 27, illustrated, reprint ed. New York City : Free Press. April In many areas the U. government and military has forced the eradication of coca without providing for any meaningful alternative crop for farmers, and has additionally destroyed many of their food or market crops, leaving them starving and destitute.

Critics note that the War on Drugs also creates an artificial shortage of workers in the labor force due to random drug testing. For example, according to the Department of Transportation, in , 70, truck drivers were fired due to testing positive for cannabis use.

The CIA, DEA, State Department, and several other U. government agencies have been alleged to have relations with various groups which are involved in drug trafficking. Senator John Kerry 's U. Senate Committee on Foreign Relations report on Contra drug links concludes that members of the U.

State Department "who provided support for the Contras are involved in drug trafficking and elements of the Contras themselves knowingly receive financial and material assistance from drug traffickers. payments to drug traffickers by the U. State Department of funds authorized by the Congress for humanitarian assistance to the Contras, in some cases after the traffickers had been indicted by federal law enforcement agencies on drug charges, in others while traffickers were under active investigation by these same agencies.

In , journalist Gary Webb published reports in the San Jose Mercury News , and later in his book Dark Alliance , claiming that: "For the better part of a decade, a San Francisco Bay Area drug ring sold tons of cocaine to the Crips and Bloods street gangs of Los Angeles and funneled millions in drug profits to a Latin American guerrilla army run by the U.

Central Intelligence Agency. Webb's premise regarding the U. Government connection was initially attacked at the time by the media. The series remains controversial.

The series resulted in three federal investigations i. The reports rejected the series' main claims but were critical of some CIA and law enforcement actions. The CIA report found no evidence that "any past or present employee of CIA, or anyone acting on behalf of CIA, had any direct or indirect dealing" with Ross, Blandón, or Meneses or that any of the other figures mentioned in "Dark Alliance" were ever employed by or associated with or contacted by the agency.

This support "was not directed by anyone within the Contra movement who had an association with the CIA," and the Committee found "no evidence that the CIA or the Intelligence Community was aware of these individuals' support. According to Rodney Campbell, an editorial assistant to Nelson Rockefeller, during World War II, the United States Navy, concerned that strikes and labor disputes in U.

eastern shipping ports would disrupt wartime logistics, released the mobster Lucky Luciano from prison, and collaborated with him to help the mafia take control of those ports. Labor union members were terrorized and murdered by mafia members as a means of preventing labor unrest and ensuring smooth shipping of supplies to Europe. According to Alexander Cockburn and Jeffrey St. Clair, in order to prevent Communist party members from being elected in Italy following World War II, the CIA worked closely with the Sicilian Mafia , protecting them and assisting in their worldwide heroin smuggling operations.

The mafia was in conflict with leftist groups and was involved in assassinating, torturing, and beating leftist political organizers. In , the US Defense Department funded a two-year study by the RAND Corporation , which found that the use of the armed forces to interdict drugs coming into the United States would have little or no effect on cocaine traffic and might, in fact, raise the profits of cocaine cartels and manufacturers.

The page study, "Sealing the Borders: The Effects of Increased Military Participation in Drug Interdiction", was prepared by seven researchers, mathematicians and economists at the National Defense Research Institute, a branch of the RAND, and was released in The study noted that seven prior studies in the past nine years, including one by the Center for Naval Research and the Office of Technology Assessment, had come to similar conclusions. Interdiction efforts, using current armed forces resources, would have almost no effect on cocaine importation into the United States, the report concluded.

During the early-to-mids, the Clinton administration ordered and funded a major cocaine policy study, again by RAND. The report said that treatment is the cheapest way to cut drug use, stating that drug treatment is twenty-three times more effective than the supply-side "war on drugs". The National Research Council Committee on Data and Research for Policy on Illegal Drugs published its findings in on the efficacy of the drug war. The NRC Committee found that existing studies on efforts to address drug usage and smuggling, from U.

military operations to eradicate coca fields in Colombia, to domestic drug treatment centers, have all been inconclusive, if the programs have been evaluated at all: "The existing drug-use monitoring systems are strikingly inadequate to support the full range of policy decisions that the nation must make It is unconscionable for this country to continue to carry out a public policy of this magnitude and cost without any way of knowing whether and to what extent it is having the desired effect.

In mid, the US government tried to reduce the supply of methamphetamine precursors to disrupt the market of this drug. According to a study, this effort was successful, but its effects were largely temporary. During alcohol prohibition , the period from to , alcohol use initially fell but began to increase as early as It has been extrapolated that even if prohibition had not been repealed in , alcohol consumption would have quickly surpassed pre-prohibition levels.

In the six years from to , the U. The main result of this effort was to shift coca production into more remote areas and force other forms of adaptation. The overall acreage cultivated for coca in Colombia at the end of the six years was found to be the same, after the U. Drug Czar's office announced a change in measuring methodology in and included new areas in its surveys. Richard Davenport-Hines , in his book The Pursuit of Oblivion , [] criticized the efficacy of the War on Drugs by pointing out that.

Alberto Fujimori , president of Peru from to , described U. foreign drug policy as "failed" on grounds that. for 10 years, there has been a considerable sum invested by the Peruvian government and another sum on the part of the American government, and this has not led to a reduction in the supply of coca leaf offered for sale. Rather, in the 10 years from to , it grew fold.

At least economists, including Nobel Laureates Milton Friedman , [] George Akerlof and Vernon L. Smith , have noted that reducing the supply of marijuana without reducing the demand causes the price, and hence the profits of marijuana sellers, to go up, according to the laws of supply and demand. The aforementioned economists published an open letter to President George W.

Bush stating "We urge the country to commence an open and honest debate about marijuana prohibition At a minimum, this debate will force advocates of current policy to show that prohibition has benefits sufficient to justify the cost to taxpayers , foregone tax revenues and numerous ancillary consequences that result from marijuana prohibition.

The declaration from the World Forum Against Drugs, state that a balanced policy of drug abuse prevention, education, treatment, law enforcement, research, and supply reduction provides the most effective platform to reduce drug abuse and its associated harms and call on governments to consider demand reduction as one of their first priorities in the fight against drug abuse.

That figure has remained virtually unchanged since , never dropping below declined between and even with many states passing new medical marijuana laws making access easier, [] though usage rates remain higher than they were in the s according to the National Survey on Drug Use and Health. ONDCP stated in April that there has been a 46 percent drop in cocaine use among young adults over the past five years, and a 65 percent drop in the rate of people testing positive for cocaine in the workplace since A study found that prices of heroin , cocaine and cannabis had decreased from to , but the purity of these drugs had increased during the same time.

According to data collected by the Federal Bureau of Prisons Furthermore, non-whites make up Supply reduction includes: interdiction, eradication, and law enforcement; demand reduction includes: education, prevention, and treatment. The War on Drugs is often called a policy failure. Critics of the War on Drugs have noted that it has done little to reduce the amount of deaths caused by drug use. This is despite the fact that the Obama, Trump, and Biden Administrations and prior administrations have perpetuated strict drug scheduling and mandatory minimum sentences from drug users that critics say have very little effect on reducing drug use and deaths.

Several authors believe that the United States' federal and state governments have chosen wrong methods for combatting the distribution of illicit substances. Aggressive, heavy-handed enforcement funnels individuals through courts and prisons; instead of treating the cause of the addiction, the focus of government efforts has been on punishment. By making drugs illegal rather than regulating them, the War on Drugs creates a highly profitable black market.

Jefferson Fish has edited scholarly collections of articles offering a wide variety of public health based and rights based alternative drug policies. In the year , the United States drug-control budget reached In the year , 53 percent of the requested drug control budget was for enforcement, 29 percent for treatment, and 18 percent for prevention. Of that, a mere one percent was put towards prevention, treatment, and research. In a survey taken by Substance Abuse and Mental Health Services Administration SAMHSA , it was found that substance abusers that remain in treatment longer are less likely to resume their former drug habits.

Of the people that were studied, 66 percent were cocaine users. After experiencing long-term in-patient treatment, only 22 percent returned to the use of cocaine. Treatment had reduced the number of cocaine abusers by two-thirds.

In the federal government issued the National Drug Control Strategy. It supported programs designed to expand treatment options, enhance treatment delivery, and improve treatment outcomes. ATR is a program that provides vouchers to addicts to provide them with the means to acquire clinical treatment or recovery support. The project's goals are to expand capacity, support client choice, and increase the array of faith-based and community-based providers for clinical treatment and recovery support services.

The Strategy additionally declared a significant 32 million dollar raise in the Drug Courts Program, which provides drug offenders with alternatives to incarceration. As a substitute for imprisonment, drug courts identify substance-abusing offenders and place them under strict court monitoring and community supervision, as well as provide them with long-term treatment services.

Additionally, enrolling an addict in a drug court program costs much less than incarcerating one in prison. Describing the failure of the War on Drugs, New York Times columnist Eduardo Porter noted:. Many believe that the War on Drugs has been costly and ineffective largely because inadequate emphasis is placed on treatment of addiction. The United States leads the world in both recreational drug usage and incarceration rates.

Chiquita From Wikipedia, the free encyclopedia. Campaign of drug prohibition led by the United States federal government. For other uses, see War on drugs disambiguation. War on drugs Colin Powell , then the United States Secretary of State , visiting Colombia in the early s as part of the United States' support of Plan Colombia [1] [2] [3] [4] [5] Date Term coined June 18, Location Global. Operations in the War on Drugs.

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United States. Allies of the United States United Nations. Drug traffickers. The war on drugs is a global campaign , [6] led by the United States federal government , of drug prohibition , military aid , and military intervention , with the aim of reducing the illegal drug trade in the United States.

The term was popularized by the media shortly after a press conference given on June 18, , by President Richard Nixon —the day after publication of a special message from President Nixon to the Congress on Drug Abuse Prevention and Control—during which he declared drug abuse "public enemy number one". That message to the Congress included text about devoting more federal resources to the "prevention of new addicts, and the rehabilitation of those who are addicted" but that part did not receive the same public attention as the term "war on drugs".

On May 13, , Gil Kerlikowske —the Director of the Office of National Drug Control Policy ONDCP —signaled that the Obama administration did not plan to significantly alter drug enforcement policy, but also that the administration would not use the term "War on Drugs", because Kerlikowske considers the term to be "counter-productive".

making drugs more available will make it harder to keep our communities healthy and safe". In June , the Global Commission on Drug Policy released a critical report on the War on Drugs, declaring: "The global war on drugs has failed, with devastating consequences for individuals and societies around the world. Fifty years after the initiation of the UN Single Convention on Narcotic Drugs , and years after President Nixon launched the US government's war on drugs, fundamental reforms in national and global drug control policies are urgently needed.

Morphine was first isolated from opium between and , [19] [20] and hypodermic syringes were first constructed in This was particularly significant during the American Civil War , when wounded soldiers were treated with morphine.

This led to widespread morphine addiction among veterans of the war. Until , products such as heroin were sold over-the-counter in a form of cough syrup. Doctors also prescribed heroin for irritable babies, bronchitis, insomnia, "nervous conditions", hysteria, menstrual cramps, and "vapors", leading to mass addiction. In addition, laudanum , an opioid, was a common part of the home medicine cabinet. In fiction, Conan Doyle portrayed the hero, Sherlock Holmes , as a cocaine addict.

The first U. law that restricted the distribution and use of certain drugs was the Harrison Narcotics Tax Act of The first local laws came as early as In , the United States passed the National Prohibition Act Volstead Act , enacted to carry out the provisions in the law of the 18th Amendment. During World War I many soldiers were treated with morphine and became addicts.

The Federal Bureau of Narcotics was established in the United States Department of the Treasury by an act of June 14, 46 Stat. In , President Franklin D. Roosevelt publicly supported the adoption of the Uniform State Narcotic Drug Act. The New York Times used the headline "Roosevelt Asks Narcotic War Aid". In , the Marihuana Tax Act of was passed. Several scholars have claimed that the goal was to destroy the hemp industry, [29] [30] [31] largely as an effort of businessmen Andrew Mellon , Randolph Hearst , and the Du Pont family.

Mellon, United States Secretary of the Treasury and the wealthiest man in America, had invested heavily in the DuPont 's new synthetic fiber, nylon, and considered [ dubious — discuss ] its success to depend on its replacement of the traditional resource, hemp. One reason for doubts about those claims is that the new decorticators did not perform fully satisfactorily in commercial production.

Technological developments decreased the labor required but not sufficiently to eliminate this disadvantage. On October 27, , Congress passed the Comprehensive Drug Abuse Prevention and Control Act of , which, among other things, categorized controlled substances based on their medicinal use and potential for addiction.

servicemen in Vietnam; ten to fifteen percent of the servicemen were addicted to heroin, and President Nixon declared drug abuse to be "public enemy number one". Although Nixon declared "drug abuse" to be public enemy number one in , [45] [43] [46] the policies that his administration implemented as part of the Comprehensive Drug Abuse Prevention and Control Act of were a continuation of drug prohibition policies in the U.

The motives behind Nixon's campaign against drugs are disputed. The Nixon campaign in , and the Nixon White House after that, had two enemies: the antiwar left and black people. You understand what I'm saying? We knew we couldn't make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities.

We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course we did. The veracity of the quote has been questioned by Ehrlichman's family, while Vox senior correspondent German Lopez has suggested that Ehrlichman was either wrong or lying.

According to Lopez:. But Ehrlichman's claim is likely an oversimplification, according to historians who have studied the period and Nixon's drug policies in particular. There's no doubt Nixon was racist, and historians told me that race could have played one role in Nixon's drug war. But there are also signs that Nixon wasn't solely motivated by politics or race: For one, he personally despised drugs — to the point that it's not surprising he would want to rid the world of them.

And there's evidence that Ehrlichman felt bitter and betrayed by Nixon after he spent time in prison over the Watergate scandal, so he may have lied. More importantly, Nixon's drug policies did not focus on the kind of criminalization that Ehrlichman described. Instead, Nixon's drug war was largely a public health crusade — one that would be reshaped into the modern, punitive drug war we know today by later administrations, particularly President Ronald Reagan In , the Drug Enforcement Administration was created to replace the Bureau of Narcotics and Dangerous Drugs.

The Nixon Administration also repealed the federal 2 to year mandatory minimum sentences for possession of marijuana and started federal demand reduction programs and drug-treatment programs.

Robert DuPont , the "drug czar" in the Nixon Administration, stated it would be more accurate to say that Nixon ended, rather than launched, the "war on drugs". DuPont also argued that it was the proponents of drug legalization that popularized the term "war on drugs".

The presidency of Ronald Reagan saw an expansion in the federal focus of preventing drug abuse and for prosecuting offenders. In the first term of the presidency, Ronald Reagan signed the Comprehensive Crime Control Act of , which expanded penalties towards possession of cannabis, established a federal system of mandatory minimum sentences , and established procedures for civil asset forfeiture. According to Hinton, Democrats supported his legislation as they had since the Johnson administration , [56] though Reagan was a Republican.

In , Vice President George H. Bush and his aides began pushing for the involvement of the CIA and U. military in drug interdiction efforts. The Office of National Drug Control Policy ONDCP was originally established by the National Narcotics Leadership Act of , [58] [59] which mandated a national anti-drug media campaign for youth, which would later become the National Youth Anti-Drug Media Campaign. Bush, [61] and raised to cabinet-level status by Bill Clinton in In the early 21st century, the war on drugs began being referred to as "the new Jim Crow ".

At the turn of the century, incarceration rates in the United States disproportionately consisted of African-American men, according to an article from the American Civil Liberties Union ACLU.

In , "the number of black men in prison , [had] already equaled the number of men enslaved in With the current momentum of the drug war fueling an ever expanding prison-industrial complex, if current trends continue, only 15 years remain before the United States incarcerates as many African-American men as were forced into chattel bondage at slavery's peak, in ".

During his time in office, Barack Obama implemented a "tough but smart" approach to the war on drugs. While he claimed that his methodology differed from those of previous presidents, in reality, his practices were very similar. He promoted a universal drug issue, but his binary "tough but smart" solution maintained the mentality of criminalizing drug offenders.

An international group called the Global Commission on Drug Policy composed of former heads of state and government released a report on June 2, , stating that "The global war on drugs has failed. Surgeon General Regina Benjamin also released the first-ever National Prevention Strategy, a framework towards preventing drug abuse and promoting healthy, active lifestyles.

On May 21, , the U. Government published an updated version of its drug policy. At the same meeting was a declaration signed by the representatives of Italy, the Russian Federation, Sweden, the United Kingdom and the United States in line with this: "Our approach must be a balanced one, combining effective enforcement to restrict the supply of drugs, with efforts to reduce demand and build recovery; supporting people to live a life free of addiction.

A ACLU report declared the anti-marijuana crusade a "war on people of color". The report found that "African Americans [were] 3. On one hand, nonwhite drug offenders received less excessive criminal sanctions, but on the other, by examining criminals as strictly violent or nonviolent, mass incarceration persisted.

In March the International Narcotics Control Board stated that the International Drug Control treaties do not mandate a "war on drugs". According to articles from the ACLU and The New York Times , Republicans and Democrats agreed that the time has come to end the war on drugs. While on the presidential campaign trail , Joe Biden claimed that he would take the necessary steps to alleviate the war on drugs and end the opioid epidemic.

On December 4, , the United States House of Representatives passed a marijuana reform bill, the Marijuana Opportunity Reinvestment and Expungement Act also known as the MORE Act , which decriminalized marijuana. Additionally, according to the ACLU, it "expunges past convictions and arrests, and taxes marijuana to reinvest in communities targeted by the war on drugs".

Over time, states in the US have approached the matter of drug liberalization at various paces. For example, as of December [update] , Oregon became the first U. state to decriminalize all drugs. The state government's response has shifted from a criminal approach to a public health approach.

Based on ideology from modern political scientists and economic theorists, some contend the war on drugs has persisted as a way to facilitate the deregulation of free economic markets through its methods of mass incarceration. According to Human Rights Watch , the War on Drugs caused soaring arrest rates that disproportionately targeted African Americans due to various factors.

The present state of incarceration in the U. as a result of the war on drugs arrived in several stages. By , different steps on drugs had been implemented for more than 50 years since , , etc. with only a very small increase of inmates per , citizens. During the first nine years after Nixon coined the expression "War on Drugs", statistics showed only a minor increase in the total number of imprisoned. After , the situation began to change. In , the New England Journal of Medicine reported that the "War on Drugs" resulted in the incarceration of one million Americans each year.

Federal and state policies also impose collateral consequences on those convicted of drug offenses, separate from fines and prison time, that are not applicable to other types of crime. In , the U. Congress passed laws that created a to 1 sentencing disparity for the trafficking or possession of crack when compared to penalties for trafficking of powder cocaine , [93] [94] [95] [96] which had been widely criticized as discriminatory against minorities, mostly blacks, who were more likely to use crack than powder cocaine.

On the other hand, possession of grams of powder cocaine carries the same sentence. According to Human Rights Watch , crime statistics show that—in the United States in —compared to non-minorities, African Americans were far more likely to be arrested for drug crimes, and received much stiffer penalties and sentences.

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Consumers Have Felt Supply Chain Problems". Archived PDF from the original on April 16, Monitoring the Future. Leiden University. September 5, FARC — Revolutionary Armed forces of Colombia" Archived May 27, , at the Wayback Machine The New York Times. While there was an industry impression that the SCO Group was far more focused on lawsuits than bringing forward new and improved products, [] [] throughout this period, the large majority of SCO employees were not involved with the legal battle but rather were working on software products.

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