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Blaise Zerega

Blaise Zerega

Posted: April 1, 2010 10:54 AM

California's Marijuana Economics

What's Your Reaction:

It's often said that California leads the nation. If the saying is true, then soon there could be more states considering recreational marijuana use. And as more people light up, these cash-strapped states would generate revenue from sales taxes on cannabis.

Californians head to the polls this November to consider the legalization of pot and, by extension, whether the state and local governments should receive income by taxing it.

The typical argument for legalization: pot is harmless, tax money spent on fighting it can be used better elsewhere, taxing sales of pot can generate money for needed social programs.

The standard claims against legalization: pot is not harmless and will increase public healthcare costs, pot is a 'gateway' to hard drugs, it fosters criminal activity.

While both sides have merit, when emotion is stripped from the debate, it becomes a simple economic issue. Watch as marijuana advocates and law enforcement spar over the "costs and revs" of legalization:

Watch the full program on FORA.tv.

 

Follow Blaise Zerega on Twitter: www.twitter.com/BeeZee

It's often said that California leads the nation. If the saying is true, then soon there could be more states considering recreational marijuana use. And as more people light up, these cash-strapped s...
It's often said that California leads the nation. If the saying is true, then soon there could be more states considering recreational marijuana use. And as more people light up, these cash-strapped s...
 
 
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11:24 PM on 04/10/2010
This is non-sense. MJ cost this country and state far more money in tax money in just incarceration because of the illegality of the substance. By making it illegal brings up a black market which is what we currently. All the most notorious mobsters / gangsters flourished during the prohibition period because they only had themselves to rely on if someone else broke an agreement or they wanted to take over another illegal enterprise. If they make MJ legal, it means we will put the black-market for MJ out of business and give them nothing to fight over because selling it won't be illegal anymore. As taxes start to come into play, people who sell their product will come into the fold and become legitimate businesses. If they want to stop growing their weed, that is their prerogative.
12:22 AM on 04/10/2010
Saying that legalizing marijuana is irresponsible because it "fosters criminal activity" is kind of silly - the activity is criminal BECAUSE it's illegal in the first place. Also, can we end this "gateway drug" nonsense? Nobody outside of Nancy Reagan supporters bought it anyway, and nobody buys it now.
09:32 PM on 04/09/2010
My prediction for an "October surprise" from the prohibitionists: They pay some dude to go on a shooting rampage, then he tells everyone it was because he was stoned. This is the only way they could possibly justify pot as being a dangerous drug.
After imprisoning millions of innocent people for many years, this desperate tactic wouldn't surprise me one bit!
09:10 PM on 04/09/2010
It's so simple: Our lawmakers don't want to legalize marijuana because much of their "income" comes from the tobacco, pharmaceutical, and alcohol industries.
01:34 PM on 04/02/2010
Great article on the legalization of marijuana:
http://www.miller-mccune.com/business-economics/marijuana-dark-horse-savior-of-california-agriculture-11863/

It should be legal and its a shame cigarettes are legal, far worse with there 600 chemicals, than pot. Another thing, cigarettes and alcohol are legal and yet kill a ridiculous amount of people each and every day, marijuana does not.

The way I see it, we can have a beer when we get off work right? Why not a blunt? Legalize the plant!!!!
09:15 AM on 04/02/2010
As the party of individual liberty and responsibility, I hope we as Republicans will put an end to this wasteful, police-state approach to marijuana. It's time to let ordinary Americans grow a little marijuana in their own back yards.

Hopefully Californians will be prepared for the "October Surprise" that the prohibitionists will pull out of the hat as November approaches. They will no doubt try some late-breaking scare tactics and continue to ignore the harm caused by putting our young people in prison, the loss of tax revenue, the waste of tax money, the huge cost of enforcement, and all of the other evils of prohibition.

Parents, let’s watch out for the "October Surprise" and let’s stop putting our own kids in jail!

Citzens of California can register to vote at w w w . sos.ca.gov/elections/elections_vr.htm Just complete the online form and mail it to the address on the form.
04:50 AM on 04/02/2010
"Underlying most arguments against the free market is a lack of belief in freedom itself"

-Milton Friedman on ending marijuana prohibition
HUFFPOST COMMUNITY MODERATOR
propitiousmoment
the journey is the destination....
11:25 PM on 04/01/2010
I will gladly, even joyfully, pay taxes on legal marijuana!
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HUFFPOST SUPER USER
Carl Caroli
Give peace a chance
05:27 PM on 04/01/2010
Government has no business controlling an herb.
batguano
As Long As Grass Grow, Wind Blow & The Sky Is Blue
04:52 PM on 04/01/2010
This really boils down to the same old false arguments in favor of continuing prohibition and enforcement, and who makes the profit, or gains from continuing illegality. The pharmaceutical industry sells numerous dangerous drugs that kill many thousands annually, and make billions; Cannabis is effective as a remedy/cure for many conditions/diseases with no known side effects. The law-enforcement community gets lots of jobs and toys, and makes money busting otherwise innocent people in various ways, including stealing their stuff. The prison-industrial complex makes money incarcerating all those pot-heads, and our society wastes billions. One American is arrested for pot every 38 seconds!

The sanity of legalization of recreational and medicinal Cannabis, and Industrial Hemp (IH), may be too much for those interests to allow, or the brainwashed to support (in most of those cases a light rinse would be more than sufficient) including our cowardly co-opted representatives. We must fight and lobby for, the right to possess and grow cannabis for personal adult recreational/medicinal use, and to legalize IH to help save our economy.

Our economy could create hundreds of new enterprises and hundreds of thousands of new jobs by legalizing IH, too bad our prez doesn’t have the vision or stones.

Work to end the madness!

http://www.njweedman.com/100,000.html
http://www.projectcensored.org/top-stories/articles/20-marijuana-arrests-set-new-record/
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04:46 PM on 04/01/2010
Legalize pot now. It's been long overdue. There are harms, i will grant that. But the benefits far outweigh the negatives. Plus you cant die from a pot overdose.

How's that from a GOPer? I cant believe i agree with the hippies here.
04:24 PM on 04/01/2010
I stopped drinking when I "discovered herb" and my lifelong bout with ibs has been totally put in check. Three of my drinking buddies; one has throat cancer , one has stomach cancer and the other pancreatic cancer. The one with pancreatic cancer is tobacco free.They all have at least one dwi and were truly putting families lives in jeopardy by being that impaired. My grandfather died of stomach cancer from drinking. Now which drug is hazardous... you know that's rhetorical.
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HUFFPOST COMMUNITY MODERATOR
Niasia
Tryin to make it in the Nation's Capital
01:37 PM on 04/01/2010
Alcohol and ciggies kill more people yearly than pot ever will yet they are sold just about everywhere. I really don't get why it is illegal and in the same category as caine and heroin. That is just beyond me.
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HUFFPOST COMMUNITY MODERATOR
tmf945
12:22 PM on 04/01/2010
"Pot will lead to harder drugs..."
Let me ask this...Did the person that gave you your first drink make you an alcoholic?"...didn't think so
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HUFFPOST SUPER USER
Paulite
12:59 PM on 04/01/2010
Pot is only a gateway drug because of the government's policy towards it. They tell us as children that if we smoke pot we'll amount to nothing, we'll get brain damage, and our lives will be ruined. The tell ficticious horror stories about pot. Then one day they meet someone who smokes pot and realizes that their not doing that bad, then they try it themselves, and find themselves living pretty much the same life they were before they smoked. These youths also see our leaders admitting drug use in the past, they see the same with gold medal winning olympians. They then realize that all the horror stories about pot were not true- they were lied to. That young person then decides to find out for themselves the real truth about drugs. And there you have it pot has became their gateway drug. If government were honest in the first place we would probably be much better off.
12:13 PM on 04/01/2010
There are two fallacies in the argument that cannabis legalization would lead to increased social cost by introducing an additional potentially dangerous substance:

1. Many potential cannabis users are already using it. The legal status of cannabis has only a minor effect on usage rates.

2. To the extent that more people use cannabis because it is legal, they will tend to SUBSTITUTE it for alcohol rather than combine its use with alcohol. Since cannabis is relatively safer than alcohol, this will result in a net decrease in social cost.

Reference: Steve Fox, Paul Armentano, Mason Tvert (2009), "Marijuana Is Safer So Why Are We Driving People to Drink?"