IN THE EARLY TO MID 1990S, SUDHIR VENKATESH UNVEILED FOUR (UNDISCLOSED) YEARS OF FINANCIAL DATA FROM THE CHICAGO CHAPTER OF THE “GANGSTER DISCIPLES.” THIS INFORMATION REVEALED EXACTLY HOW MUCH MEMBERS WERE PAID, IN ADDITION TO THE GANG’S MONTHLY EXPENSES. USING THIS DATA, IN ADDITION TO DRUG PRICING DATA FROM THE OFFICE OF NATIONAL DRUG CONTROL POLICY, WE HAVE ESTIMATED WHAT THE AVERAGE GANGSTER/CRACK DEALER MAKES TODAY.

AFTER AVERAGING FOUR YEARS OF GANG DATA, AND ADJUSTING THE NUMBERS FOR INFLATION, WE ALSO APPLIED A 3.14% DECREASE TO TAKE INTO ACCOUNT THE PRICE DROP FOR A GRAM OF CRACK COCAINE (THE PRIMARY PRODUCT) OVER THE YEARS.

MANY GANG ORGANIZATIONS ARE SET UP SIMILAR TO FRANCHISES WHERE THE LOCAL CHAPTERS PAY A “TRIBUTE” TO THE CENTRAL LEADERSHIP HIERARCHY. WE WANTED TO ESTIMATE HOW MUCH THIS ADDED UP TO IN PRESENT DAY TERMS.

THE CENTRAL LEADERSHIP SHOWN ABOVE IS MADE UP OF ROUGHLY 4 TO 6 “CHAIRMEN” WHO ARE RESPONSIBLE FOR STRATEGY AND MAINTAINING RELATIONSHIPS. UP TO ONE-THIRD OF THESE LEADERS ARE IMPRISONED AT ANY GIVEN MOMENT.

UNLESS YOU ARE IN THE UPPER PART OF THE HIERARCHY, THIS “JOB” HAS HORRENDOUS PAY, ESPECIALLY GIVEN THE HIGH RISK OF IMPRISONMENT OR DEATH. EVEN IF YOUR AVERAGE FOOT SOLDIER WORKED 40 HOURS A WEEK, AT A RATE $4.57 PER HOUR, HE OR SHE STILL WOULDN’T BREAK $1,000 A MONTH. EVEN WITH ZERO SKILLS AND EDUCATION, THERE ARE MUCH BETTER – AND SAFER – OPTIONS.

- “AN ECONOMIC ANALYSIS OF A DRUG-SELLING GANG’S FINANCES”
BY STEVEN LEVITT & SUDHIR VENKATESH
-THE OFFICE OF NATIONAL DRUG CONTROL POLICY