This report presents estimates on the amount and retail sales value of cocaine, heroin, marijuana, and other illegal drugs consumed in 1988, 1989, and 1990.
Two approaches were used in the estimate. The number of drug users was multiplied by estimates of the average amount of drugs consumed. The supply of drugs available for consumption was determined by estimating the amount of drugs that enters the United States and escapes seizure. Prevailing retail prices were used in both approaches to convert drug amounts to dollar value when sold to final users. This study estimates that Americans spent approximately $18 billion on cocaine, $12 billion on heroin, $9 billion on marijuana, and $2 billion on other illegal drugs in 1990. These estimates are expressed in dollars, but may not have been payments in cash. Retail sales of both cocaine and marijuana apparently have fallen by about 24 percent from 1988 to 1990. Retail sales of heroin during the same period apparently have fallen slightly less, approximately 22 percent. The study was unable to compute trends for expenditures on other illegal drugs. One table summarizes estimates for the retail sales values of all drugs, and another table indicates estimates for the production and distribution of cocaine. The report advises that the social costs from drug consumption greatly exceed the $40 billion to $50 billion spent on the consumption of illicit drugs. 6 figures, 7 tables, and 66 footnotes