At the beginning of this year, employees of the large equipment manufacturer Caterpillar were able to walk into Walgreen’s or Walmart pharmacies and get many generic drugs for free instead of paying a $15 co-payment. Many big companies like Caterpillar normally employ a prescription benefit manager (PBM) to handle and negotiate discount deals with drug manufacturers. The PBM then tacks on a percentage which it charges to its client. By negotiating directly with Walmart and Walgreen’s, Caterpillar will save 30 – 35% on many common drugs. It is a win-win-win for the employees, Caterpillar, and Walmart and Walgreen’s.

If I were the head of a large network of illegal drug distribution in the U.S., I would want a political and legal environment that promoted my business.

I would donate to the campaigns of conservative politicians who would vote to continue to keep those drugs illegal. Better that the profits go in my pocket than to state and Federal treasuries in the form of taxes.

I would donate to the campaigns of politicians of a moderately liberal bent who would vote to lessen penalties for small time users. When my customers are in jail, they don’t buy my product. I shun the more liberal politicans who want to legalize any of these drugs and eat into my profits.

I would donate to politicians who favor stricter, but not too strict, security measures at the border because this will make it more difficult for my less sophisticated competitors to get product into the U.S. I would prefer more moderate conservatives for this task.

In short, the political and legal environment in the U.S. is pretty close to optimal for a well run illegal drug distribution network.