Why do drug dealers still live with their moms?

In chapter 3 of Freakonomics the authors discuss the business of dealing crack cocaine.  They review data and evidence collected by a student who spent years living with, studying, and researching a gang of drug dealers in Chicago.  The title of the chapter asks the question, "why do drug dealers still live with their moms?" Most people assume that those who deal drugs would make enough money to live on their own, especially those who deal with a large gang such as the Black Gangster Disciple Nation that the authors discuss in the chapter.  The authors argue that contrary to popular belief, most drug dealers do not make very much money and, as a result, live with their parents out of necessity.  They find that only those at the very top of the gang make a substantial living selling drugs.  Those who are doing all the leg work and actual selling of the drugs, barely make any money doing so.  The authors make the argument that dealing drugs, within a gang at least, is only a lucrative business if you are close to the top and in charge. If you are not an authority figure, then you likely will still live at home with your mother. 

Though much of the chapter consists of anecdotal and factual evidence to tell the story of what life of a drug dealer is like, the authors do point to some of the spreadsheets that they acquired directly from the gang to show their levels of income.  Four statistics that they provide are:
p. 102 how much a leader of a gang makes on a monthly basis, p. 103 how much workers under the leader make on a monthly basis, p. 102 the number of members in that specific gang, p. 105 statistics on the area in Chicago in which the gang members resided.

On page 102, the authors state that the leader, J.T. had a monthly net income of $8,500 which translates to a $102,000 a year salary, tax-free.  The authors use this statistic as a way of illustrating their point that those at the upper levels of a gang do make a lot of money and can earn enough to live very comfortably.  This statistic is presented before all other income levels of gang members are presented as a way of leading the reader on to further wonder why do drug dealers live with their moms if they're making this much money. However, the authors then reveal on the next page that the officers who work for J.T. make $7 an hour and the foot soldiers make $3.30 and hour which is less than minimum wage.  This brings the authors point to light that most drug dealers do not make much money which forces them to live with their mothers.  A wage of $3.30 an hour is well below minimum wage and is not a livable wage whatsoever which is why many of the drug dealers still live at home.

The authors also show the statistic of how many people are actually in the gang.  Again, on page 102 they state that there are 120 bosses whom are paid very well and 5,300 people working under them.  This statistic is used to show the huge number of people that are affiliated with the gang and why it is not possible to pay that much people such high "salaries".  The authors then compared the game of drug dealing to that of professional sports, acting, and artists.  There's a large number of people competing but only a very small number, 2.2% in this case, make it big.  The authors compare the low level drug dealers who are earning very little to a high school athlete aspiring to reach the pros.  So, this statistic is used to show both how little most drug dealers are paid and how many drug dealers there are out there which makes it easy to see why so many of them would be living at home rather than lavish lifestyles.  By presenting this statistic first and then comparing it to professional sports it makes it easier to realize the situation of many drug dealers that are competing to try and make it to the top.

Lastly, the authors present many statistics on page 105 of the circumstances in which the people from J.T.'s area live in.  They say that 56% of children live below the poverty line, compared to the national average of 18%; 78% are from single-parent households; and the median income for the neighborhood is $15, 000 a year which is well less than half that of the national average.  By presenting this statistic last, the authors make it clear why anyone would ever choose to sell drugs and only make $3.30 an hour.  Since the economic conditions in the neighborhood are so terrible, being a drug dealer, though it doesn't pay well, has a certain stigma attached to it.  For kids growing up in this area, drug dealing is a cool thing to do and provides hopes of making a lot of money - though most barely make any.  So, from these statistics we see why someone would choose to work a job with such little pay.  Not only may it be one of the only opportunities available to them, but it also attaches to them a label of being in a gang which is something that people in that neighborhood value very highly.

The authors use these and other statistics to illustrate their point that though there are many drug dealers that make a lot of money, the vast majority barely make any and are forced to live with their parents and get other jobs to make ends meet.  I found this chapter very interesting.  I was actually fascinated to learn that gangs were so organized especially with respects to keeping track of their finances.  It is interesting to know that even those drug dealers who are affiliated with and sell for a gang are still relatively low-level dealers who do not profit very much from their activity.