Because if the police won't deter violence for you, you gotta deter it for yourself, and so we ended up in a kind of intimidation arms race that is, frankly, stable but costs a lot more lives---and facilitates a lot more petty crime---than the state monopoly on violence system.
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And then on top of that, we had a massive---CIA-assisted!---infusion of capital into black inner cities in the form of cocaine. The---again, CIA-assisted!---glut of cocaine in the market led to the popularization of the more addictive "crack" form of the drug.
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