How Legalizing Marijuana Could Reduce The Federal Deficit

WASHINGTON -- The federal government could save as much $13.7 billion annually if it were to legalize marijuana, according to a paper by Harvard economist Jeffrey Miron.

More than half of the savings, $7.7 billion, would come from not having to enforce the current prohibitions against the drug, while an additional $6 billion per year would come from taxing marijuana at rates similar to tobacco and alcohol. Since the paper was first published in 2005, more than 300 economists, including three Nobel laureates, have signed a petition to call attention to the work and initiate a debate among people on both sides of the issue.

"At a minimum, this debate will force advocates of current policy to show that prohibition has benefits sufficient to justify the cost to taxpayers, foregone tax revenues, and numerous ancillary consequences that result from marijuana prohibition," the petition says.

While the savings are still minimal when compared to a $1.3 trillion federal deficit, many public officials have used an economic argument to promote pot legalization, including Democratic State Assemblyman Tom Ammiano from California, who in 2009 argued that legalization would provide billions of dollars in much-needed revenue to the state. Known as Proposition 19, the ballot proposition ultimately went down to defeat in 2010.

Miron, for his part, says the savings are the least of the arguments for legalization, since the government has no clear reason to want to reduce marijuana consumption in the first place. "If you take that as a given," he told HuffPost, "that they're spending money to accomplish something you shouldn't have wanted to accomplish in the first place -- then that's pretty idiotic.

"I think the discussion should mainly be about why should marijuana be illegal," he added. "Are there good reasons to treat marijuana differently from alcohol or tobacco? Why not let people who want to smoke marijuana smoke marijuana? We let people do all sorts of crazy things legally, from bungee jumping to downhill skiing to driving on the freeway to eating quarts of Ben & Jerry's and everything else. Why is marijuana different? I don't think it is."

Infographic by Chris Spurlock

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Comments

[chey0]

11:18 PM on 12/08/2012

the picture in the article isn't of a pot leaf, that's a maple leaf or something. a pot leaf has at least one more set of leaves. oops

[aadamcycle]

05:39 PM on 11/11/2012

You underestimate the benefit cannabis will do to the economy. Cannabis is not only a recreational drug but can be used for 1000's of products from clothing, oil, fuel, methanol fuel, food, feed, medicine, plastic, paper, and almost anything you can think of. Not only can it supply those products but is a CO2 gas storage in certain products like hempcrete a play on concrete. 1 acre of hemp can replace 4 acres of trees, oh but wait that hemp can be grown every year vs a tree once every 25 or more? Its criminal to keep it illegal its stupid and economically unsustainable. If we were able to legalize cannabis today and cut wasteful government spending I would expect us to be out of this recession and on to a growth unseen in the past 50 yrs. I hope legalization happens before we crash but if we crash it will happen then. Its inevitable we need it now. The ones who dont want it legal are pharma, tobacco, alcohol, oil, paper, textiles, and any other products that will be adversely affected.

[Michael Snarky Kirk]

05:21 PM on 08/13/2012

Can anyone tell me why the Federal government blindly persists in demonizing Cannabis? It has been demonstrated by scholars, clerics, politicians, doctors and law enforcement officers that it is not harmful and certainly not as addictive and deadly as is certain prescription drugs, nicotine and alcohol. On the contrary, medical marijuana is now helping thousands of AIDS and cancer victims to live comfortable lives without pain and suffering and yet the Federal government chooses to treat them as criminals, penalizes them, incarcerates them and destroys the lives of thousands of their families. What kind of heartless creatures enforces these unjust laws upon their fellow Americans ? I believe that if someone is in pain and the legally prescribed drugs they are taking either do not relieve or inflict seriously debilitating side effects, they have the moral right to ignore such arcane laws.....The only people who benefit from these laws are the Pharmaceutical, tobacco and alcohol companies and the drug cartels. A long time ago St. Thomas Aquinas (1225–1274) defended the natural-law view that unjust laws did not bind the citizen in conscience. His words still ring true today. How many more innocent people have to suffer and die before government accepts the fact that once again prohibition is unethical and morally wrong and is inflicting far more harm than good ?

Read more: Civil Disobedience - The History Of The Concept - Laws, Law, Thoreau, and Practice - JRank Articles http://science.jrank.org/pages/8660/Civil-Disobedience-History-Concept.html#ixzz23SgvBm1q

[Tom Hn]

10:53 AM on 05/02/2012

The country is broke, but it should never give up its principals and the future of the children for a short term money gain from pot.

[average dude]

11:34 AM on 05/07/2012

So, this countries principles are centered around repression and laws that dont reflect the will of the people? I guess it is also centered around rascism and unequal treatment under the law? I dont think so tom.

[njndirish2k6]

12:03 AM on 06/08/2012

Why would we want to get rid of principals, who will run the schools?

[rcmdr7]

06:23 AM on 04/28/2012

How can the Federal Government condem pot when Washington D.C. has medical marijuna laws passed? Doesnt congress or something make the laws for D.C.?

[hanime3]

12:23 AM on 07/10/2012

The way our government works is by having a local government then a state government then a federal government. Congress or something at the federal level does not make the laws for DC. That's done at a local level.

[rcmdr7]

08:44 PM on 07/10/2012

D,C has a mayor and a 13 seat city counsel, but all laws have to go thru congress before they are ratified... so yeah, Congress had to ok the Medical marijuana program for District of Columbia.

[DMT8665]

02:16 PM on 04/24/2012

Change will come from the will of the people not Washington D.C.
The change in public perception is changing slowly, like with all cultural shifts in thinking.

The baby boomers smoked it in the 60's and 70's and now vote against it.
The next generation might think differently

[canoebum]

09:25 PM on 05/05/2012

As a Boomer, I object. I have never had an opportunity to vote for marijuana legalization. If the question came up, I'd definitely vote YES for legalization. Also, I avoid, wherever possible, voting for for candidates who declare opposition to legal pot.

Please don't stereotype. It's ugly and unfair.

[DMT8665]

09:37 PM on 05/06/2012

Yes stereo typing is wrong. But many boomers smoked in the 60's and 70's and now vote against it. Why? Cause they got married and had kids? Just wondering.
It seems likes there might be a big change in Federal Law. Connecticut just became the 17 state. But who knows? they said that in the 70's too.

[Trapper50cal]

10:34 PM on 04/23/2012

Let's not look at it as a solution to the deficit (it isn't) but it COULD provide jobs, provide a domestic industry, help pay for universal healthcare, pay for drug counseling, ease overpopulation in jails, lower the tax burden created by incarcerating offenders, and de-incentivise drug cartels bringing it in from Mexico thereby easing border issues by taking the money out of the criminal enterprise out it. (and removing much of the violence associated with it's illegal trade)

[writersbloc]

07:46 PM on 04/23/2012

I'm tired of hearing about the positive health, and fiscal benefits that can and will follow marijuana decriminalization and regulation. I think the American people get it. I think they understand that an army of doped-up zombies will not lay waste our amber waves of grain, nor wipe clean god's grace. There's some other reason, maybe the same affective experience that a friend labelled an "ick" factor. At worst, maybe legalization will have to wait for the older "ick" centered generation to die off, or fade into non-voting senility. Who knows? But the facts seem to favor legalization.

[JohnThomas]

11:01 PM on 04/23/2012

To any objective observer, alcohol would carry an exponentialy larger "ick" factor since it is addictive and FAR more harmful than marijuana. Yet, responsible alcohol consumption is largely accepted in society - even celebrated, as in wine and beer festivals.

The public is getting it. That's why polls show support for ending marijuana prohibition has passed 50 percent, nationwide - with around 60 percent in the Western states.

We just need the "leaders" to get out of the way.

[writersbloc]

05:06 PM on 04/24/2012

Agreed. On this issue our elected leaders would do more good by stepping aside.

[JohnThomas]

02:57 PM on 04/23/2012

Every major government commission on marijuana concluded it is less "addictive" than coffee and FAR less harmful than alcohol. That includes Nixon's 1972 Shafer Commision. The findings of all these major commissions can be read here:

http://www.druglibrary.org/SCHAFFER/Library/studies/studies.htm

The DEA's own administrative law judge, Francis Young, concluded after an exhaustive review of the evidence: "Marijuana, in its natural state, is one of the safest therapeutically active substances known to man."

Alcohol directly kills more than 50,000 Americans every year. It kills many thousands more in highway deaths and from alcohol-induced violence. The preponderance of the research shows marijuana consumption is neither a signficant cause of auto accidents, nor violence.

NO ONE has ever died from ingesting marijuana - in all of recorded history. - That makes it safer than aspirin, coffee and peanuts!

[freeg823]

08:22 AM on 04/23/2012

The federal government does not want it legal. They want to keep prisons full, there is proof by the alarming rate that prisons are being built and schools are closing. The government realizes they can control an angry nation much easier than a happy free thinking one. If any one really believes it is illegal to protect you because it is bad for you, wake up. There are no deaths reported due to the use of pot. Alcohol, tobacco, fast food, and our favorite sports have killed many people. Marijuana is so beneficial in so many ways. It can reduce deforestation, provide green fuel, medicate people with several ailments, including some mental disorders and the list goes on. It is only illegal because that benefits the government and the corporations they are in bed with.

[gregory57]

02:52 AM on 04/23/2012

Who will they use to fill the private prisons? How will they justify law enforcement budgets? How do they keep the DEA in business?

Prohibition serves a purpose.

[Trapper50cal]

10:36 PM on 04/23/2012

By focusing on harder drugs...Blow, H, Meth, XTC, etc.

[gregory57]

12:12 AM on 04/24/2012

You're talking about some serious, desperate criminals now. They prefer to go after the nice peaceful stoners. Its easier and safer.

[FlyingTooLow]

11:27 AM on 05/12/2012

I spent 5 years in Federal Prison for a marijuana offense.
I watched bank robbers come and go...and come back. Most of those lads stayed about 20 months for their indiscretions.

Meanwhile, I stayed for 5 very long years.
When I went to the parole board after 3 years behind the wall, I pointed this out to the panel members. Their response: "You must understand. Yours was a very serious offense."

I was dumbstruck! How do your respond to that mentality?

I wrote about my escapades over a 14 year period (all fictitious, of course.)

Shoulda Robbed a Bank

That's my contribution to helping point out just how ludicrous our pot laws truly are.
amazon.com, barnesandnoble.com, smashwords.com

[gregory57]

12:56 PM on 05/12/2012

Jury Nullification is the only answer.  Americans have to take responsibility for these unjust laws.Jurybox.org

[Nicon]

01:51 AM on 04/23/2012

The numbers your using don't account for a few things.
1. The cost to keep Marijuana offenders in jail or prison.
2. The other benefits and taxes produced by Marijuana legalization. (Side or parallel business such as packaging, shipping, processing, marketing, insurance, State and Local Sales taxes ect.
3. Marijuana is the least harmful intoxicant humans use, meaning we get to keep more of those new taxes because were not spending it on sick pot smokers like we do with booze and tobacco.
4. If you read Dr Miron's whole book the numbers get close to 46 Billion in savings/taxes per year. Every freakin year.

Talk about filling the hole.

[GerryS]

11:44 PM on 04/22/2012

EXACTLY!

legalize it and tax it like cigarettes, or higher taxes than cigarettes-----------

that would take the criminal element out of it and add $$$ to the tax coffers----------

[Snafu]

06:46 PM on 05/10/2012

Taxes on an easily grown plant won't be as much as you think, most of the savings will come from not jailing smokers and expanding businesses associated with it's consumption. Also, alcohol consumption,DUI arrests and deaths have dropped in areas that have already passed medical marijuana laws. Money that once flew over the border to drug lords would stay in our economy if it were legal.

Nevermind the obvious reason that jailing people for smoking this harmless plant is just plain evil.

[RevRayGreen]

09:14 PM on 04/22/2012

http://www.dmlive.tv/press/420-stand-up-speak-out-iowa-2012-wgreen-central-station-the-libra-lounge/

Reporting from Des Moines Iowa, 420 Stand Up Speak Out Iowa 2012 w/Green Central Station & the Libra Lounge...more video & pics to follow when edited. Some was also broadcasted live via DMLive.tv….. Big thanks to all who showed in support……..

[rockymtnleather]

02:57 PM on 04/22/2012

Like this is some kind of surprise???