The Audacity of Dope
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The Audacity of Dope
Could legal marijuana save California’s economy?
By Jeff Segal
Posted Wednesday, February 11, 2009 - 10:36am
Olympic swimmer Michael Phelps has made marijuana a popular topic. He was photographed smoking from a bong, lost corporate sponsorships, and was suspended from the sport as a result. But celebrities aren't the only ones thinking about dope.
Some legislators in California have pot on their minds, too. That's because the government of the biggest economy in the United States is facing a massive budget deficit whose pain would be alleviated by decriminalizing marijuana.
California's current deficit stands at a whopping $15 billion and is expected to reach $42 billion next year. And the state run by Gov. Arnold Schwarzenegger has virtually run out of cash. It recently delayed $3.5 billion of payments to taxpayers and counties.
While nearly all U.S. states currently face budget shortfalls, California's deficit is more than one-third of its general fund. That's largely due to its dependence on income taxes, which slide during a recession. And the state can't easily borrow due to the government bond-market freeze. Moody's even warned it may downgrade the state's rating.
There's no easy fix to the problem, as any solution likely requires cutting benefits and social services—tough political choices for Schwarzenegger. But the state does have an abundant natural resource it may be able to draw on for help.
Marijuana is California's largest cash crop. It's valued at $14 billion annually, or nearly twice the value of the state's grape and vegetable crops combined, according to government statistics. Indeed, a recent report pegged marijuana as two-thirds of the economy of Mendocino County, a ganja hotbed north of San Francisco. That's not surprising—it costs $400 to grow a pound of pot that can sell for $6,000 on the street.
But the state doesn't receive any revenue from its cash cow. Instead, it spends billions of dollars enforcing laws pegged at shutting down the industry and inhibiting marijuana's adherents. Of course, there's a reason for that. Marijuana's social costs may include addiction and rehabilitation treatment and lost productivity. Yet these are minute compared with the extensive social costs of alcohol or tobacco.
Of course, just legalizing pot wouldn't automatically harvest revenues for the state. An organized system of regulating sales and collecting taxes would need implementing. And it's possible that general drug use could rise, though the debate that pot is a gateway drug to harder substances is inconclusive.
There's also the question of whether or not taxing marijuana would simply create a black market that would again skimp the state on taxes. The best corollaries here are cigarettes and alcohol. Rises in "sin taxes" on them have decreased consumption—a positive—but don't seem to have destabilized the legal market. Decriminalization could lead to some job losses in law enforcement, though the countervailing argument would see these forces put to work stopping harder crime.
So what are the numbers? A national legalization effort would save nearly $13 billion annually in enforcement costs and bring in $7 billion in yearly tax revenues, according to a study by Harvard University economist Jeffrey Miron. Since California represents 13 percent of the U.S. economy, those numbers suggest the state could save $1.7 billion in enforcement costs and nab up to $1 billion in revenues. That doesn't include any indirect revenues as, for example, rural farming communities grow or marijuana tourism, which has been lucrative for the Netherlands, takes off.
Put it all together, and California could potentially wipe some $3 billion off its budget deficit by letting its people puff and pay. That still leaves it with a gaping $39 billion hole to fill, so the state's problems go far beyond what a new cash crop can fix. But anything to help soothe the state's chronic fiscal pain—even if unpalatable to some—is worth considering.
Comments
Marijuize Legalana!
I think legalizing would help America out tremendously. As far as requiring more rehab for users, how often do you see marijuana users end up in rehab solely for marijuana? I personally have never heard of this. I have never seen a pot smoker so far out of control ie: "unproductive" or negligent...that they are a candidate for rehab.
The biggest concern of mine is where all of the current drug dealers would end up. That's a scary thought to me. So many people who are used to the "easy-life", dealing drugs, would be jobless with no income. I am being stereotypical here when I say that the majority of drug dealers are people who I wouldn't want jobless, roaming the streets.
With that said, legalizing would open up many job opportunities as well. Tending to the crops and packaging up the goods. Not to mention the HUNDREDS of other uses that marijuana provides. Not only would budget problems be reduced, but our energy crisis would benefit immensely.
legal pot
The fact that rehab isn't necessary for folks that choose to quit using weed is one reason to decrim it not only in Cali but also nationwide.
I believe revenues from taxing it would be minimal, lots of people would choose to grow their own.
The savings would come from laying off the huge number of government employees suckling at the tax payers teat enforcing pot laws. They have over 50 years to halt marijuana use using their high salares. They have not succeeded. This is a capitalist country, failures must not be funded by the public or the private sector.
What has come about from their efforts is loss of constitutional rights for all, a hideously expensive prison system, housing inmates in that system for weed infractions, & lots of pressure on our spendy judicial system.
Another issue is consumer protection for the millions of weed users. Even if they grown it they have no idea how potent the crop is until they smoke it unless they are chemists and can measure the thc content.
They can be assured that the weed hasn't been spiked with pcp or poison.
Those that have no way to grow and choose to buy on the street have no such assurance, and are unprotected consumers.
Other comments have opined that loss of government jobs would be a negative should pot be decrimmed.
Times are tough, there are far too many unproductive, even counterproductive government jobs and unproductive jobs need pruned, the private sector is aggressivly downsizing, government at all levels needs to do the same.
Legalize
If pot were legalized then the free 50 pounds of marijuans rule that the Feds use on smugglers from Mexico would stop the funding of illegals to the West.
If illegals didn;t arrive then the schools would be forced to close that were built for the children of illegals.
The Catholic Churches that were closing from lack of parishoners would have to close.
Not to mention all the revenue that the courts, the police agencies, the district attorneys offices, defense counsels, and politicians make penalizing and discussing penalties for marijuana.
Then again, the paper pulp tree market and the kerosene market would suffer because hemp fiber was paper and hemp oil was in the lamps before it was illegal.
you are all nuts!
I think this is a horrible idea! Any of you who are totally for it don't understand addiction and yes it is a GATEWAY drug, I have worked for rehabs and almost all the addicts who finally addmitted their addiction have said that pot is very much a gateway drug and oh yes the drugs are horrible for you. It can cause permant depression by ruining the reuptake abilities and many other things. Just because you can't handle life without drugs doesn't mean it should be legal and start taking over others lives.
missing the truth
You have work for rehabs befor and belive pot is a gateway drug. obviously you have lived a shelterd life. ignore what media preaches. The real gateway drugs are tobacco and alchol; how many of addicts are still using those products? it's great you help. But don't be mislead by the by the illusions created by those controling the media. leagalization of marijuana would create more positve then the negative.
legalize pot
It is time to come out of the dark ages and legalize marijuana.You want to ban truley dangerous drugs,just look to big pharmacutical companies that kill thousands of people a year for a profit. Stop cuting down trees and use hemp for paper.Put police to work stopping terrorism instead of jailing our sons and daughters.Ignore ignorant Christians that still believe the sun revolves around the earth. Grow up people. Pot is a miracle drug,a gift from the earth, and the answers to many of the problems the world faces today.
Reefer Madness
It is remarkable to me that there are still people who buy into the myths of marijuana as a destructive demon weed. Yes, it is dangerous to be significantly intoxicated and drive or do other risky activities. But, pot making you stupid or lazy? Then how is possible to get stoned each evening and study pre-med anatomy and physiology and have top score in every exam all semester in a class of 250 people. Second semester I traded high score with one person so at times I fell to second highest score. Or how about get stoned and run for a couple hours and be a top ten racer in the region? Yeah, lazy. I know many intelligent, productive, and very active people how enjoy pot. Like many things, it can be used unwisely. There are many people who are unproductive and not intelligent who smoke pot - I dare say, it is not the pot that is the key problem. Compare pot to alcohol and it is absurd to have one legal and the other is not. If you are willing to think about it, pot being illegal and alcohol legal is absurdly illogical. Pot is not lethal and is not addictive like alcohol is. It is really the marijuana laws that are madness.
bad reasons
First of all, I would like to address Mr. Gordon. There are several ways to make material for public use. Polyester, Nylon, Wool and Cotton for starters. IF hemp was to be legalized, those same industry people would jump all over this bandwagon if the cost was truly lower. Don't even doubt it. Noone is limited just because they grow cotton or manufacture nylon. This is called diversification and it happens all over the world. And this is just to address cloth products. No, most people would not press there own seeds for oil, however, someone would start a business to manufacture hemp oil, and on down the line. Someone would take up the challenge to market these products. Maybe just not you. Now on to my view of this development. First of all, and most important, stopgap measures are never the right way to do things. I personally would like to see Marijuana legalized, however, not just to fill up the kings coffers. Our legislature HAS to stop spending like drunken sailors. We have to stop the social programs that just add more to the social program spending. Financial responsibility must come first and foremost. I am not against a helping hand, I am against letting these people stagnate and not be allowed to fulfill their potential as human beings. Decriminalization of Marijuana is not the answer to the fiscal crisis that we are facing, Responsible spending is. And on to my third point. The state must get off of the peoples back. I am a Human being with rights, not a revenue source. I see nothing wrong with people inhaling the smoke of a plant if they have a mind to. No, they should not operate machinery if this affects their state of mind or get behind the wheel of a vehicle, just as if they have been drinking or have taken prescription medication that would inhibit their judgement and reflexes. That is what a taxi cab is for. For decades, the majority of people have wanted to see hemp and all of its products legalized, and have been stymied by the fear and doubt of the opposition. Wake up America! ! ! Stop being afraid and start being the leaders of the world we are and should be. Lets push open a few envelopes together. Ninth Servant
This would be a great time
This would be a great time for the state of California and the country at large to reevaluate their views on marijuana...This could provide a vital new cash crop for farmers, companies and consumers to take advantage of...Reducing the impact on our judicial system and prison facilities while also providing a much needed revenue boost...There are a great number of recreational marijuana users out there who are long-time consumers that are not the scourge of the earth that opponents like to paint them...These individuals come from all walks of life and contribute to the infrastructure of our communities...they are teachers, firemen, police officers, military personnel, doctors, nurses, construction workers, etc...Legalizing marijuana and taxing it as alcohol and cigarettes are, would create a huge windfall of profit for those involved...It is time for a calm consideration of the benefits that legalizing marijuana could have...
legalization
It's not just Cali that needs to legalize, it's the entire United States. THEN California's problems would be over. It's not that people would be growing their own, as it stands right now you can make 350 GALLONS of wine for personal use without running into trouble with the law. I'm sure that the vast majority would not be growing it. The Cali growers would have a commercial market for their weed. As to being a gateway drug that gate would be closed with legalization, the underground pipeline would shut off and I bet there'd be a major reduction in the usage of all the other drugs because the pipe is funded by weed and the network of illegal distribution would be shut down, only a fraction of other drugs would remain around with no way to distribute. Ending the war on pot smokers is a win/win for the US, maybe with Obama the country can pull it's head out of it's arse when it comes to antiquated and ill-informed laws, empty the jails and move ahead to a "higher" plain of enlightened laws.