When I was in 7th grade, candy was relatively cheap. Gone were the days of penny candy, but Bazooka Bubble Gum could be had for two cents, and three cents for an Atomic Fireball wasn't too much to ask. Not all places, however, sold candy. One of those places was school. At school, you had breakfast and lunch. Ice cream could be had after lunch, but at no other time could you buy anything other than the institutionally authorized choices.

One day, some entrepreneurial young fellow decided to invest a couple dollars into a little business venture. He showed up at school with a bag full of bubble gum, jawbreakers, peppermints, and what turned out to be his best selling item, Atomic Fireballs. He would charge a nickel for gum and most candy, but fireballs cost a dime. The markup was high, but he had the market to himself. As his stocks ran low, he found that demand was rising, and he could ask a quarter for his last remaining Atomic Fireballs and still sell them.

Within a week, the number of candy sellers at school had multiplied. Almost every classroom had at least one candy seller. Some specialized in the most popular item, the fireball. Others carried a variety. Bubble gum was a big seller, but those who expanded into candy bars found that the markup put the price out of the range of those kids who were spending the extra nickels from their lunch money.

In our own little microcosm, free market economics had taken hold. Some invested and some spent. Those who invested saw their money grow, while others would gladly hand over their extra money to receive the products that they wanted. Those who paid attention to the market sold all their wares each day, while others found themselves cutting prices or eating their profits. While demand outpaced supply, profits were high, but additional sellers entering the market caused a reduction in prices because of competition.

Unfortunately, this burgeouning economy didn't set well with the authorities in the public school system. Public schools are not places where the concepts of free markets, competition, and especially profit are welcome. Within a few weeks, a decree came from above that candy sales would no longer be allowed at school.

When a marketable item, subject to the laws of supply and demand, is outlawed by a controlling authority, the item does not cease to exist. The supply may be affected, but the demand rarely is. Since demands usually dictate the livelihood of a given market, the marketable item usually continues to be available. This viable market now has a new name, "the Black Market."

By declaring candy sales to be against the rules of the school, the school administration had created a black market for candy. This had the immediate effect of reducing the candy sellers, initially, from dozens to a handful. Those candy sellers could no longer arrive at school with grocery bags full of candy, but instead had to limit their product to smaller containers which could be more easily concealed. Smaller containers also gave rise to smaller selections of candies. The two that always stayed around were bubble gum and fireballs.

Following the immutable rules of supply and demand, these few remaining black market candy dealers had to take actions to limit their risk. They reduced the numbers of clients that they would sell to to those with whom they were close friends, or immediate deskmates in their classes. This reduced their immediate demand to manageable levels. They also raised the prices. That nickel bubble gum became a dime, and the fireball now cost a quarter all the time.

A side effect of this new candy black market began to appear. The atomic fireball was the most popular candy sold, but they had certain risks attached to them for the seller. The first was the size. Fireballs take up a certain amount of room. To make their sale worthwhile, you had to carry a certain number of them to school each day. The second risk was packaging. Atomic fireballs were, as they are today, wrapped in crinkly plastic. These wrappers were noisy, and a few dozen of them could make considerable noise when carried or when being removed for sale. This noise could attract the attention of the authorities, causing the dealer to risk capture and punishment.

An answer was found in a completely different product. Some kid discovered a means to provide more heat than could be found in an atomic fireball in a more potent, yet smaller package. The initial financial investment was higher, but the result was a more potent effect with a shorter duration, in a package that could allow dozens of sales each day with virtually no risk of being caught. Quite simply, this kid purchased a bottle of cinnamon oil from the grocery store and soaked toothpicks in it. The toothpicks could be sold for a nickel each, and kids clammored for them on the playground.

As demand rose, supplies did as well. Several kids took the idea and ran with it. Soon, there was a race to have the most cinnamon toothpicks available for sale. As supplies began to meet demand, potency became the issue. Overnight soaking of the toothpicks became a day, for more heat. We all knew who had the hottest toothpicks, or the best prices, and we chose our dealers accordingly.

Little did I know, back then, that I was living in an analogy of the drug war.