Innovative ways to stimulate the economy: Legalize marijuana for cost savings, tax revenue
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As anyone who's ever attended an event hosted by NORML (National Organization for the Reform of Marijuana Laws) will attest, marijuana advocates are sometimes a bit excessive in their defense of cannabis sativa.
Promoting it as a solution for all problems, from soil and water conservation to gas prices, they occasionally give the impression that the weed has almost messianic properties, and its decriminalization is the only thing standing in the way of a perfect utopian world.
While this perspective is obviously unrealistic, there is a strong economic argument to be made in favor of marijuana legalization. Although many economists have explored the effect of legalization, the most compelling is probably Dr. Jeffrey Miron, a visiting professor of Economics at Harvard University. In 2005, he authored a paper in which he argued that marijuana legalization would effectively generate more than $10 billion per year. Miron's report has since been endorsed by scores of prominent economists.
Dr. Miron estimated that every year the United States spends approximately $7.7 billion to enforce marijuana laws. A repeal of these laws would immediately save state and local governments $5.3 billion and would save the federal government a further $2.4 billion.
Enforcement expenditures, while impressive, are merely the beginning. If marijuana were taxed at the same rate as other consumer goods, Miron estimates that it would generate approximately $2.4 billion per year. If it were taxed at the same level as tobacco or alcohol, the revenues would jump to $6.2 billion per year.
On a secondary level, marijuana legalization would probably result in a significant spike in agricultural, manufacturing, and white-collar jobs, as farming, processing, and marketing the drug would require new hirings in all three areas. Moreover, regulation of the marijuana industry would seem likely to at least partially offset the employment drop-off caused by the cut in marijuana-related crimes. If farms could be shifted from tobacco production to cannabis production, it could even take a bite out of the significant federal agricultural subsidies that currently drain the federal treasury.
It is also worth noting that marijuana legalization could, conceivably, result in a significant drop in prescription drug expenditures. One drug, Marinol, is directly distilled from the plant, and scientists have found that marijuana is helpful in treating an almost endless list of illnesses, including epilepsy, migraine, and numerous mood disorders. If it were offered as a low-cost alternative to prescription drugs, it might assist in the development of a workable universal health care plan.
Perhaps the strongest traditional critique of marijuana lies in the commonly-held belief that it transforms hard-working, ambitious young people into lazy slackers. However, it is worth noting that America's past three presidents all admitted (with varying degrees of openness) to recreational marijuana usage.
For that matter, America's most highly-decorated Olympian was recently photographed partaking of the demon weed. Taken as a pair, Michael Phelps and Barack Obama would seem to constitute a stunning rebuttal to the argument that marijuana causes sloth. More to the point, if some of the country's most prominent figures have admitted to smoking marijuana, one must wonder how much of a stigma the drug still retains.
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Reader Comments (Page 1 of 10)
4-04-2009 @ 3:47PM
Peppie said...
I agree 100%. Marijuana is a huge cash crop.
However, the politicians and government officials want to keep marijuana illegal for the same reason the Mexican cartel leaders want to keep it illegal: Greed
The government hands out huge cash bonuses to government agencies to combat marijuana, even if that government agency is something like The Department of Energy. This agency wants to have a little more beef in its budget so "let's keep marijuana illegal"
The cartels make a killing off the sale of marijuana. I read a statistic that around 75% of a cartel's funding comes from the sale of marijuana. Apparently, this generates billions of dollars in revenue, money that a "Reefer Madness" government refuses to capitalize on.
Reply
4-25-2009 @ 11:56AM
Anthony said...
If thats the case then why does Amsterdam do so well, I mean we shouldn't do everything they do, but their economy is a lot better then ours right now
4-25-2009 @ 1:21PM
(: said...
weed is good. everyone should do it. :D
4-25-2009 @ 1:29PM
laura :D said...
People need to just losen up and smoke a blunt :D
it's not even bad.
4-25-2009 @ 4:33PM
Tony. said...
I have to say,If pot was legalized it would be better for America. I'm going to be honest,Through my whole high school career I smoked pot.I was a "pot head" But,I still managed to get A's and B's so,I'm not sure what the problem is? It's a seed grown plant,It was put here by our creator and not made by man. Legalize it.
4-25-2009 @ 5:17PM
Cal said...
This article is severely flawed and biased. Propaganda statements such as, "marijuana advocates are sometimes a bit excessive in their defense of cannabis sativa. Promoting it as a solution for all problems, from soil and water conservation to gas prices, ... While this perspective is obviously unrealistic..."
No, it's not unrealistic if you understand that marijuana is the female Hemp plant known as Cannabis, and Hemp is the male portion of the plant. People need to understand that there are two different plants with two completely different uses.
Cannabis Sativa and Cannabis Indica will not save the world - HEMP WILL. Look up Jack Herer's books. Hemp is the single most versatile BIODEGRADABLE resource this planet has to offer, and it takes less energy to produce it in all its forms than any other fuel or fiber.
We've got idiots injecting spider silk into goats to extract the silk from their milk in a long, expensive drawn out process when they could be using hemp virtually for free.
What's wrong with this country? I'll tell you. We've all been dumbed down to not think for ourselves, and go with the flow and listen to the boob tube and do what the Globalists tell us to do. No one knows what Hemp is anymore. You know how they made hemp illegal? Shenanigans. If the congressmen were not duped and tricked, hemp would still be legal. You can read more about my thoughts on www.cannabischronicles.info
But to the author of this post, if you want to be a journalist, do your research before you make such asinine un-researched flawed statements. You can't write an article on something you know nothing about!
4-04-2009 @ 7:17PM
Christian said...
Isn't the "war on drugs" really "war on Americans?"
I don't know how the politicians, the police and DEA agents, etc... sleep at night! I can't imagine having to send people to prison, taken the property, and removing them from their children as being part of my job! How they stand there in the pictures showing their recent bust, it makes me sad, angry and confused!
They create the problems they say they are trying to prevent. Growing up I couldn't get a bottle of beer without investing hours standing outside a store asking someone to buy it for me, if anyone would, this didn’t work most of the time, but I could get pot in about 30 minutes most days. Criminals sell drugs to kids, but businesses don't tend to do such things, not even employees.
They have us in a pickle, you can't stand up for what you know is right, and what should be your choice, because of the possible consequences.
I think if everyone that believes it should be legal donated just $10 to one of the groups trying to legalize cannabis, such as MPP or Normal, it would be legal in a very short period of time.
I don't want my kids smoking while they are kids, if they ever do, but as my oldest is almost in high school, I know that he can find pot easier than I can. What a messed up system we have going here in America! The land of the free, free to lose everything, and spend years in prison if your caught with a plant, or a bag, or conspiring to purchase, etc...
I can't wait for the day, when everybody says, "enough is enough", no longer will we allow so many of our fellow Americans to be arrested, for something we know isn't as bad as drinking!
Reply
4-24-2009 @ 7:43AM
tim tozer said...
Why don't we all chip in and sew the government for failing to keep drugs out of the hands of our children even after waring with our society for 50+ years. We as a nation of adults should monitor the drug like alcohol & tobacco, not law enforcement alone. You don't see alcohol or tobacco dealers. Your right, the Government loves this War on America. I wish we could vote them out all at once. Let the people vote and be heard.
4-24-2009 @ 9:31AM
jeango said...
You shouldn't have to worry about those things with your children, especially if you have taught them right from wrong. I myself have 4 kids and I am not worried about the bad influences that come from school, beleive it or not but children send more time at home than in school. My oldest child is 8 now and in 2nd grade and tutors kindergarten. So, come 5th, grade I beleive when someone of the influence inters my child's life, I am assured by teaching my children right from wrong at home, they will carry their knowledge through life. You need to be sure of your teachings at home and a lot more will follow along accordingly!
4-25-2009 @ 2:32PM
Sharon said...
I completely agree with you. I remember the times my friends would leave parties to go to the liquor store - they were usually gone for at least 2 hours for a 2 minute trip waiting for someone of age to buy the booze for them. On the other hand, I've never had to wait more than half an hour to get weed... and I've never needed a fake ID. There's got to be something wrong with that picture. Everyone knows how harmful alcohol is for you, but nobody wants to repeat the prohibition efforts of the 1920s because it was a complete failure. Why can't the government realize that the prohibition of marijuana is also a failure, and will continue to be so? The legalization of marijuana would help everyone - politicians who need a quick solution, the economy, and even parents. If it was legal people wouldn't have to worry about the pot they buy being laced with cocaine or worse.
A note on parenting - if you talk to your children when they are in high school about these topics and encourage them to be open with you, I'm sure that you will have a lot less to worry about. Kids are only silent because they're scared of getting in trouble. I personally believe that it is better to be involved in your child's life, even if they are into "illegal substances" than to not know anything and give them the opportunity to walk into a dangerous situation.
4-25-2009 @ 2:37PM
Dave said...
As a former pothead, I can take the stand and can confess to both the negative and positive aspects of smoking weed. Honestly speaking, the worst thing that weed does to the human being is that it leads them to believe that everything is all good, all cool, going to be alright. In as messed up a world as we live in, this is becomes repressive to our ambitious nature, which as we know is the driving force behind our capitalistic economy. However, the effect is only momentarily. The effects of weed wears off in less than two hours. In comparison to other American vices, weed is the safest (you drive high and safely, but cannot drive drunk and safely, the condition doesn't exist. Forget the commercials stating otherwise; i have been a passenger numerous times to high drivers and have never been involved in an accident). Weed is a time-out from the tyranny of our lives. As long as one completes the work at hand, than whose to say a time-out is wrong. I say legalize it and tax it.
P.S. this article should be read by everyone who can read.
4-04-2009 @ 11:05PM
Sarah said...
Taking any drug for recreation is disgusting. It shows a lack of ability to entertain yourself or anyone else, and an inability to find humor naturally. But mainly I think people think they're "cool" to use them, and I think they cite any one they admire for using them, as being someone to emulate. I've yet to meet a fan of a famous musician who after emulating their drug habits went on to write great music, nor receive their incomes. As a former reader of autobiographies, much of these drugs started out as a job requirement forced on certain musicians to keep them up all night, and any one who realizes their influence and cares about others would advice against drug use, like an adult. I think people should respect their body more then to use drugs, and whose to say what the real damage has been so far from such massive use. Another concern is what could possibly be mixed in there, it's not clean.
But if it helps people with massive pain, such as in a migraine headache, and quickly, and if it's regulated and clean, they want whatever works if it's not addictive. Any migraine sufferer would have a pack around if this claim is true. But they should get a prescription, so it won't be abused by liars.
I do know that while recuperating from a migraine, even after it's been reduced greatly through the safest drug, or not, that a latte really helps alot. However straight coffee makes it worse.
Reply
4-05-2009 @ 12:16PM
John said...
Don't you think coffee (caffeine) is a drug? Many people cannot even start the day without a coffee fix and continue using it throughout the day to maintain that high (alertness). My wife is a coffee drinker and if she does not have coffee in the morning she develops a headache from caffeine withdrawal. Do you drink alcohol? Alcohol is used to escape reality and causes more deaths and unhappiness than marijuana ever would. I do not use caffeine, alcohol, or marijuana however, when I look at the legal drugs and mood enhancers available, their effects and consequences it is ludicrous to exclude marijuana from this mix of legal substances.
4-05-2009 @ 12:20PM
DON said...
WHAT?!!!
4-05-2009 @ 12:23PM
DON said...
Sa.rah; If you belive caffien is not a drug , you are not only ignorant , but a hippocrit
4-05-2009 @ 1:54PM
Bo said...
Sarah...what planet are you from ? In the old days days Hemp was used for everything under the sun....it only became a "hidious" drug when the government sought to advertise it that way....it became very popular during prohibition when liquor was outlawed....the "Hippies and Beatniks" in the 60's made it the drug of choice when "flower power" emerged....in my 60 years here on the rock I have never heard of anyone being killed by smoking pot....it is not a "gateway drug" as some might want you to believe, but merely a mild form of relaxation....it wears off fast and leaves no hangover....you should try it !!!!.....you are probably so tight you squeak when you walk....I don't condone its use by minors, but see it in the grade schools all over....time for the moral hiporcritical majority to get off their butts and smell the coffee....it ain't going away anytime soon ,so you better figure out how to make a buck on it....isn't that tha American way ?
4-06-2009 @ 11:23AM
Greg said...
"Taking any drug for recreation is disgusting." I agree with John's response; caffine--and it's relations in tea and cocoa bean products, nicotine and alcohol are widely used recreational mood and mind altering substances. They need to be controlled, not banned. Disgusting, while a valid personal viewpoint, is only a personal view point and should not be the basis for public legislation.
4-08-2009 @ 1:51PM
BILL said...
POT AS IT IS NOW IS DIRTY AS YOU DON'T KNOW WHAT IS MIXED IN WITH IT ! MORE REASON TO MAKE IT LEGAL AND REGULATED BY THE GOVERENMENT. THAT WOULD CREATE MORE JOBS TAXES AS WOULD BE PROVEN WOULD BE INCREASED,, THE COST OF JAILS/PRISONS WOULD GO DOWN NOT TO MENTION THE OVERCROWDING THAT ALREADY IS THERE. THE USE OF STRONGER DRUG USE WOULD GO DOWN BECAUSE YOU ARE NOT GOING TO A DRUG DEALER TO BY IT AND BEING SOLD MORE ALONG WITH IT ,, SO HOSPITAL COST AN OVERCROWDING WOULD GO DOWN .
THE BENIFIT OF USEING POT IS IT HELPS MANY ILLNESS SUCH AS EPILIPSY, CANCER DURING TREATMENT, PAIN CONTROL.MANY MANY MORE.
DOES IT CAUSE LAZINESS ? NOT UNLESS THEY ARE LAZY ALREADY!!! SMOKIN AT WORK IS ALREADY BANNED, SMOKIN IN THE HOSPITAL IS BANNED, RESTERANTS ,, ECT ECT
THERE ARE MANY THAT CAN PROVE THIS THROUGH TESTING OR THAT ALREADY KNOW..SMOKING POT GIVES YOU A DIFFERANT OUTLOOK ON LIFE AND WE NEED THAT BECAUSE WHAT WE HAVE NOW IS NOT WORKING!!
JUST MY THOUGHTS BW
4-08-2009 @ 2:21PM
Geno said...
Sarah, It is clear you have no idea what the effects of marijuana are. It sounds like you are talking about coke or meth. As a person who has insomnia can tell you, pot will not keep you up at night. Also, the product that would be out, when legalized, would have fewer addatives than cigarettes and would be far less addictive.
4-24-2009 @ 6:47AM
xbplaya1122 said...
have you ever talked to any marijuana smokers???? or done research on the subject???? 10 million+ marijuana smokers cant be wrong