Skip to Content

State budget crisis - time to kick the potheads out of prison?

More
Text SizeAAA

Filed under: Recession

I've been using my trial membership in Netflix to watch the Showtime series Weed, about a suburban housewife who starts dealing pot to keep her household afloat. As the economy tanks, this has caused me to wonder if changing our approach to marijuana could free up enough money to help offset our state budget shortfalls.

A study done in June of 2005 by Jeffrey Miron, a Visiting Professor of Economics at Harvard, investigated just this question. He concluded that the annual cost of enforcing current weed prohibition was around $7.7 billion, split about 2/3 to the states and 1/3 to the federal government. (The Office of National Drug Control Policy does not agree with Miron's conclusions.)

Miron further concluded that, if the drug were legalized, it could yield an annual tax revenue of $2.4 billion if the tax matched prevailing sales taxes, and $6.2 billion if it were taxed at the rate of alcohol or tobacco. I suspect that many farmers would also appreciate having another cash crop to bolster their income.

Adding the two figures together, Miron conjectures legalization could improve our nation's balance sheet by $14 billion annually.

Of course, arguments about the wisdom of legalization range far beyond dollars and sense. Some claim it is a gateway drug, which could be true, since users are forced to obtain their weed from the same drug underground that deals more addictive substances. Certainly, many narcotics users began by smoking marijuana-- but I'll bet 100% of them abused alcohol and tobacco even earlier. So why don't we prohibit them as gateway drugs?

With states in crisis, I'd rather let a pothead walk free than deny an elderly woman money to keep her furnace running through the winter. $14 billion could go a long way toward keeping our clinics open, our schools funded and our elderly fed and housed. And I'm not just blowing smoke.

Subscribe to Walletpop

Reader Comments (Page 1 of 1)

Readers' Choice Winners for Best in Winter Travel
Votes have been cast for Best Ski Hotel, Best International Ski Destination, Best Caribbean Cruise ...
Readers' Choice Awards for Best in Sweets
Is there a maker of fine chocolate candy that makes your mouth water just thinking about it? Who ...

Julia Scott
Julia Scott Filed under: Bargain Babe

Borders coupon for 33% off

Here is the latest coupon from Borders. Get 33% off any one regular-priced item today through Thursday, Feb. 11. Some exclusions. Online use coupon code BSL7210X. One per person. The coupon also ...
Tom Barlow
Tom Barlow Filed under: Food

No seed shortage for gardeners this spring, despite reports to the contrary

Thanks to the recession, more Americans are interested in growing their own vegetables. Bad timing, according to an Associated Press report that seeds for some popular veggies might be in short supply ...
Mitch Lipka
Mitch Lipka Filed under: Recalls, Consumer Ally

Deaths spark crib recall: CSPC says to stop using Generation 2 and ChildESIGNS cribs

The U.S. Consumer Product Safety Commission is issuing a crib recall and warning anyone with Generation 2 Worldwide or "ChildESIGNS" drop side cribs to stop using them following reports of the deaths ...
Zac Bissonnette
Zac Bissonnette Filed under: Real Estate

Survey says? Homeowners think real estate collapse is over

A Thomson Reuters/University of Michigan survey published last week suggests that most homeowners think the worst is over, and don't anticipate further declines in the value of their properties in ...

Headlines from WalletPop Partners