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Time is called on Oregon’s decriminalisation experiment

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Florists are usually cheerful places. But Gifford’s Flowers, in downtown Portland, has been going through it of late. It’s been broken into three times and employees have been attacked and even bitten, says Jim Gifford, who has been running the store for half a century. Mr Gifford blames Oregon’s decriminalisation of the possession of drugs, which, he says, has led to more “people in drug episodes” coming to his shop. “A blue city in a blue state should be leading,” the lifelong progressive Democrat says. “But also not forgetting about the people that work hard and play by the rules.”

In 2020 Oregonians voted to decriminalise the possession of small amounts of hard drugs, including fentanyl, methamphetamine and heroin. It was the first (and so far only) state in the country to do so. The change was a massive experiment in treating addiction as a public-health problem. But the state has now concluded that the experiment failed. This month, in the face of ever-increasing overdose rates and public complaints such as Mr Gifford’s, the Democratic-controlled legislature overwhelmingly passed a measure recriminalising the possession of drugs. The governor, Tina Kotek, has said she will sign it.

Overdose deaths have spiked in Oregon, increasing by 42% in the year to September 2023 (compared with a national increase of 2%). Researchers disagree on how much decriminalisation versus the spread in fentanyl is to blame, but none thinks that the state’s experiment managed to decrease deaths. Oregonians are frustrated. Open-air drug use has become particularly blatant.

The replacement law makes the possession of a small amount of drugs a misdemeanour crime punishable by up to 180 days in jail. It does provide paths to addiction care, by offering drug offenders the chance to go directly to detox facilities instead of jail (and to try it again if the first time doesn’t work). “It’s time to reset our guardrails,” Andy Mendenhall, the head of Central City Concern, an addiction-services provider in Portland, told lawmakers. He pointed to people who found choosing between prison and treatment to be a “powerful part of their pathway of recovery”.

Praising the bill, Paige Clarkson, the district attorney in Marion County, believes that the new provisions will allow prosecutors to focus on drug dealers while prioritising treatment for addicts. “Police, sheriff’s deputies, district attorneys, we don’t want to criminalise addiction,” she says. “We want to use the criminal laws to motivate those individuals to get healthy.” Oregon’s new regime would still be quite enlightened.

But its drug experiment is likely to become a cautionary tale anyway, says Floyd Prozanski, the state senator who led the charge in enacting it. Although he still believes in the mission, Mr Prozanski recognises that advocates are going to “have to rebuild the confidence of people not only in Oregon, but around the country. And realise that when we implemented it, we did it wrong.”

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Economics

A protest against America’s TikTok ban is mired in contradiction

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Home insurance costs soar as climate events surge, Treasury Dept. says

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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Economics

How bad will the smoke be for Angelenos’ health?

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Where there is fire, there is smoke. For the people of Los Angeles, this will add to the misery. Some are already suffering from burning throats and irritated eyes. Many miles from the wildfires, people are wearing masks; shops are running out. The fires may also cause long-term problems.

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