The Gang as a Criminal Enterprise
Of the many issues that gangs of the 90's have addressed, in their own
fashion, the one that has, and will continue to have, the most impact
on the American Community, is the expansion of gang enterprise. Not only
is gang enterprise an increasingly acceptable means of illegal income,
it is also another profound statement of counter-rejection by young people
to the larger society.
According to national statistics, about 95% of hard core gang members are
high school drop-outs. It is said by these gang members that school cannot
prepare them to survive in this society. Many of the schools they attend
have a "0" academic level. They know that four years of high school will
not prepare them for college, which means that the job market will not be
open to them on a competitive level. In essence, they have created a system
of education and a system of employment that is much more responsive to
their needs.
While much attention has been given to the association of street gangs
with drugs, there has been little public discussion of the economics of
this association. In the past, those street gangs that depended upon crime
as a source of income were limited to the traditional methods of extortion,
robbery and burglary as a means of providing that income. Because of the
opportunistic nature of such crimes, coupled with the risk of personal
injury and/or being sent to jail, many of the gang members could be lured
away from the gang by positive alternatives such as: a chance to learn a
skill and obtain gainful employment.
The availability of cocaine and the ease with which it can be converted
to "crack" has changed the route through which the gang obtains its income
and as a direct result, the nature of the gangs response of offers of
positive alternatives. By way of illustration, consider the following:
On an initial investment of $2,500.00 worth of cocaine and using two readily
available household chemicals, $10,000.00 worth of "crack" can be produced.
In areas of high demand it is not unusual for a gang to "turn over"
(increase the profit on) its initial investment by a factor of four.
Therefore, the $10,000.00 worth of crack becomes $40,000.00 by the
end of the day.
Typically the gang will employ one person to collect the money for the drugs,
one person to deliver the drug to the buyer and two look outs/security men.
Their pay can be as low as $50.00 per day each. Often a percentage is offered
to the team for sales over a certain amount per day.
If the $200.00 per day cost of the team is deducted, the profit for the day
would be $29,800.00. That's tax free money and continues seven days a week,
three hundred and sixty five days a year.
In light of these facts, it becomes clearer why gangs resort to violence
in disputes over the best sales areas and why the mere offer of a job at
minimum wage does not readily deter a youth from this profitable enterprise.
Gang enterprise, justified through the gang system of values, incorporated
into the gang structure, and embraced by the gang as an acceptable economic
foundation for the gang society, will prove to be a monumental challenge
for communities determined to eliminate the gang phenomenon.