Economists Call Current Pot Laws Dopey

By George Anderson
The Nobel Prize winning economist and a founding father of Reagonomics doesn’t smoke marijuana so there’s no question as to whether he inhales or not, but he does think it’s high time (sorry, pun intended) to end laws that make its sale and use illegal.
Prof. Milton Friedman is among 500 economists who have publicly endorsed a Harvard University report, The Budgetary Implications of Marijuana Prohibition, that says legalizing it would save states and the federal government $7.7 billion a year while bringing in between $2.4 billion and $6.2 billion in additional tax revenues annually, depending on the rate of the levy.
“There is no logical basis for the prohibition of marijuana,” the economist told Forbes, “$7.7 billion is a lot of money, but that is one of the lesser evils. Our failure to successfully enforce these laws is responsible for the deaths of thousands of people in Colombia. I haven’t even included the harm to young people. It’s absolutely disgraceful to think of picking up a 22-year-old for smoking pot. More disgraceful is the denial of marijuana for medical purposes.”
“I’ve long been in favor of legalizing all drugs,” he said. “Look at the factual consequences: The harm done and the corruption created by these laws…the costs are one of the lesser evils.”
Prof. Friedman doesn’t believe that legalizing marijuana or any other illicit drug would have any impact on the current federal budget deficit. “Deficits are the only thing that keeps this Congress from spending more” he said. “Republicans are no different from Democrats. Spending is the easiest way to buy votes.”
Moderator’s Comment: Should the retail industry support the legalization of marijuana? If it were legalized, how would the transition be made from the
current black market system to one where product was sold, presumably, in retail stores? –
George Anderson – Moderator
- Milton Friedman: Legalize It! – Forbes.com
- The Budgetary Implications of Marijuana Prohibition – Marijuana Policy Project
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14 Comments on "Economists Call Current Pot Laws Dopey"
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I am reminded of my first visits to Georgia in the early 70’s when there were still (and may yet be) many dry counties. The locals laughed at the scene when liquor laws were up for vote. They had to put up with the conservative Baptists and moonshine producers marching arm in arm to protest the potential liberalization of the liquor laws.
I agree with everyone’s observations, but sometime soon I hope the “silent majority” will be heard and people will be allowed to conduct their lives as they wish as long as it doesn’t hurt others. Then again, this is probably just a “pipe” dream because the term “silent majority” has been around for quite a while. It is not just recently that the majority have not been heard.
Why not? Friedman et al make strong arguments for legalization from a variety of platforms. The obvious way to start the process is to put it in with the BATF, set some guidelines, sell it like you sell alcohol and cigarettes. My sense is that, if it were legalized, there would be fewer traffic fatalities but we might have to support the new snacking tax because of the munchies! I think the positives really outweigh the negatives.
I have no idea whether the retail industry should support the legalization of marijuana or not, but it doesn’t matter, as there is less chance of this happening than a return to prohibition. We’re in an extremely conservative social climate at the moment and political conservatives and evangelicals are not going to support this as it goes against their core beliefs. Not going to happen and I don’t think it will happen in my lifetime.
I agree with Al that this is a purely rhetorical question. I have long thought we should legalize all drugs for all the reasons mentioned. People are going to use drugs regardless, but if we controlled the pipeline, then we would save millions of lives as well as billions of dollars in jail, court and law enforcement time. Besides, we could tax the heck out of them and generate revenue. We would avoid deaths due to contamination or bad drugs. All around it makes a lot of sense. But it is, as it were, a pipe dream.
To answer the question, I would put it in the hands of the BATF and the IRS – the IRS being the tougher of the two entities.
Al’s right, of course, but he’s still young, so it may yet happen in his lifetime. I have a hard time not laughing out loud when I think of what Bush’s reaction to this would be. Would he go totally apoplectic? Would he pronounce “marijuana” “Marra-jew-wanna?” If the time does come, say, 20 or 30 years hence, we should look to the countries where it is legal and learn from them. When I was in Amsterdam a few years ago, I was told that in some stores the stuff was actually in packages with UPC codes. That, as they say, blew my mind, but I was never able to prove it. For the record, I did inhale in the ’60s, and therefore have no plans to ever run for president.
Al, no doubt you’re right about this being taken seriously in the near term, but the political/social pendulum swings quickly and who knows what the next decade will bring? Also consider that religious conservatives and fiscal conservatives often inhabit the same bodies. What could possibly be the rationale for spending tax dollars on incarcerating young people for smoking pot? At some point, I believe this will become less of a partisan issue as practical demands win out.
I won’t bother touching on whether marijuana possession and use should be legalized. However, I will disagree with one of the study’s conclusions, in that few will bother to grow their own should it be made legal to do so. Distilling whiskey in the home is difficult–growing cannabis is easy. I recall hearing that the Chairman of the Bureau of Narcotics originally resisted the idea of criminalizing marijuana back in the 1930’s because the plant grows wild in all 50 states. There already exists a counterculture retail market in equipment that allows indoor cultivation. This market is large enough today that police in some areas have resorted to using thermal imaging to identify houses where grow lights are in operation. Certainly, many people who would use cannabis would not bother to grow their own, but viewing the potential percentages as being analogous to home whiskey distillers is off the mark.
Should we legalize pot or shouldn’t we? This study has raised questions on and off for some years and it only remains a question. Studies on Pot will not address the deeper social and economic implications that retailers would face, based on their position of the question. I believe this issue is too hot for mainstream retailers, but a small regional retailer, with liberal demographics, may be able to bring national attention to the question. Attention is all the question will enjoy for now.
Speaking hypothetically, marijuana might prove to be a profitable line for retailers. And it seems righteous to stop incarcerating young people for simple possession at a high cost to taxpayers. But I wouldn’t advocate that retailers take an active pro-pot stance. Most have been backing away from tobacco sales due mainly to health concerns. Pot risks are similar. And considering the present quality of the retail workforce – what kind of labor pool would chain retailers have to draw from if pot were actually legal?
“What kind of labor pool would chain retailers have to draw from if pot were actually legal?” Exactly the same one they have now. No more people are going to go out behind the dumpster on their break than already do. Companies have rules about drinking on the job; they can have rules about inhaling on the job.
I agree that there is zero chance of this happening in the current social climate, but let’s use facts rather than emotions in this discussion.
Never say never. Who would have ever thought they would repeal the national 55 MPH speed limit?