"Beginning with the Iran-Contra Affair, some politicians and journalists began arguing that the CIA contributed to the rise of the epidemic. Allegations ranged from the presence of drug ties to the Contra rebels, to possible direct involvement in drug trafficking by the Contras and even members of the CIA. The exact degree of awareness and involvement on the part of the CIA itself continues to be disputed. However, on April 17, 1986, the Reagan Administration released a three page report admitting that there were some Contra-cocaine connections in 1984 and 1985, arguing that these connections occurred at a time when the rebels were "particularly hard pressed for financial support" because U.S. aid had been cut off." wiki
"The crack epidemic is correlated with a sharp increase in crime on an unprecedented scale, especially violent crime. Research by two prominent economists from the University of Chicago, Steven Levitt (co-author of Freakonomics and winner of the 2003 John Bates Clark Medal) and Kevin Murphy (winner of the 1997 John Bates Clark Medal) suggest that crack was the most prominent factor contributing to the rise and fall of social ills in the African American and Latino communities between 1980 and 2000.
Between 1984 and 1994, the homicide rate for black males aged 14 to 17 more than doubled, and the homicide rate for black males aged 18 to 24 increased nearly as much. During this period, the black community also experienced an increase in fetal death rates, low birth-weight babies, weapons arrests, and the number of children in foster care. In 1996, approximately 60% of inmates incarcerated in the US were sentenced on drug charges. The United States remains the largest overall consumer of narcotics in the world today. [not in citation given]
The reasons for these increases in crime was due mostly to the fact that distribution for the drug occurred mainly in low-income inner city neighborhoods. This gave many inner city residents the opportunity to move up the "economic ladder" in a drug market that allowed dealers to charge a low minimum price. The basic reason for the rise of crack was economic." wiki