Backlash against Kellogg's: would legalizing marijuana be good for the economy?
Filed under: Banks, Budgets, Debt, Entrepreneurship, Food, Tax, Recession, Investing
Kellogg's is experiencing backlash for dumping Phelps over his bong smoking photo that appeared in last Sunday's British tabloid, News of the World.
The cereal and snack manufacturer says Phelps' behavior was "not consistent with the image of [Kellogg's]." (Seth Meyers of SNL would beg to differ, watch the video below). Phelps' image already appears on boxes of Kellogg's Frosted Flakes and Corn Flakes, which are selling on ebay. (No recall yet).
Many Deals of Michael Phelps
Kellogg's is experiencing backlash for dumping its sponsorship deal with Michael Phelps due to a British newspaper publishing photos of him smoking marijuana from a bong.
Kellogg Co. / AP
Visa Inc. has had a long-standing relationship with Michael Phelps, and made the champion swimmer the focus of its current "Go World" campaign. When Phelps won his fourth gold medal in Beijing -- giving him a record all-time total of 10 golds -- and his eighth Beijing gold on Saturday, the credit card processor aired spots the very next commercial breaks cheering the milestones.
Visa Inc. / AP
With a recent lap around the Hilton Beijing pool, Phelps closed out the Hilton "Swim to Beijing" Relay, a multi-city charity event to raise funds for the USA Swimming Foundation to support swim education programs across the United States. Hilton Hotels & Resorts is also an official sponsor of the U.S. Olympic Team.
Getty Images / AP
AT&T, the U.S. Olympic Team's official telecommunications sponsor, featured Phelps and other Olympic athletes and aspirants in a number of spots, as well as provided products and services in support of the U.S. Olympic Team.
Gregg DeGuire, WireImage
Swimsuit maker Speedo, which outfitted the U.S. team along with many other nations' swimmers, boasts that 23 out of the 25 swimming world records set at the Beijing Games were set by Phelps and other athletes wearing Speedo's LZR RACER suits.
Mike Stobe, Getty Images
As CNBC's Sports Biz columnist Darren Rovell points out, an organization called Marijuana Policy Project, a Washington, DC-based lobbying group with 26,000 members, is leading a boycott against Kellogg's, calling their treatment of Phelps "hypocritical and disgusting."
Rob Kampia, the executive director of MPP, told CNBC, "Kellogg's had no problem signing Phelps when he had a conviction for drunk driving (DUI in 2004), an illegal act that could actually have killed someone. To drop him for choosing to relax with a substance that's safer than beer is an outrage, and it sends a dangerous message to young people."
A Facebook page has already sprung up with over 6,000 members lashing out at Kellogg's for "criminalizing" Phelps. Seth Meyers on SNL also gave the brand, popular among kids, a good ribbing and offered some advice to moms and dads, "Parents, if your kid says 'Michael Phelps smokes pot why can't I?' Just say, 'You can, right after you win twelve gold medals for your country.''"
The Phelps phenomenon could get swept up into another one buzzing through the blogosphere: legalizing marijuana to bring in tax revenue and to create jobs. If there's ever a time pot had a chance of becoming legal, it's right now. With jobs and businesses disappearing at an astonishing rate, why not legalize something that's already popular and widely used? (How do I know it's popular? How else would Seth Rogen have a career.)
After digging around, and thinking back to my sociology classes in college, here are some pretty enticing reasons to legalize marijuana:
- It's estimated by a team of 500 economists, including Nobel laureate Milton Friedman who advised Nixon and Reagan, that taxing marijuana like alcohol and cigarettes could bring in $6.2 billion annually.
- Job creation: farming, packaging, distribution, and of course, marketing--it's going to be a crowded playing field.
- According to those 500 economists, in an open letter to 'the President, Congress, Governors, and State Legislatures', legalizing marijuana would save $7.7 billion in state and federal spending a year.
- The criminals who sell drugs can be caught for not paying their taxes. (It's how they finally nabbed Al Capone).
- Legalizing it would create government jobs in the F.D.A. to ensure quality.
- According to a report by ABC News two years ago, marijuana is a cash crop in the U.S. valued at $35.8 billion annually compared to $23.3 billion for corn and $7.5 billion for wheat. ( ABC News) The government and private business might as well cash-in.
- If you legalize it, there's a chance it won't be cool anymore. The Netherlands, where small amounts of marijuana are sold in coffee shops, have a lower rate of drug use for every kind of drug compared to the U.S.
Reader Comments (Page 1 of 24)
2-10-2009 @ 2:58PM
Dorna said...
Really Kellogg?!?
Love it!
Reply
2-11-2009 @ 11:29AM
James said...
It's not O.K. Why do we have double standards in this country. He had a DUI, wasn't he driving the car...now smoking pot, wasn't he the one with the bong in his hand sucking face with the bong? Where does it stop, when he's doing crack or dead. He choose this life and this is the cost. So now he will be remembered as the idot who won more gold metals in a single game and the most gold medalist ever who was stupid enough to get caught smoking pot....so when does he take resposibility for his actions. He was a role model for my kids, but not now.
2-11-2009 @ 9:20AM
Jon Boy said...
They should legalize it! I just read that
Marijuana Compound May Stop Breast Cancer From Spreading.
http://tinyurl.com/cqbp46
2-11-2009 @ 11:41AM
Ernie said...
Well, maybe they'll legalize marijuana if we sink into a depression. They repealed that stupid prohibition during the first depression, maybe this is pot's chance.
2-11-2009 @ 11:59AM
journo said...
o.k. let's look at this from a bigger perspective...a guy was at a party and someone took his photo and shopped it to the highest sleazy media buyer. it isn't a little odd that this didn't appear in the US first? And that this party happened nearly 3 months ago? hello??
3-04-2009 @ 4:01PM
AntBoog15 said...
James..why do you look for professional athletes to be role models for your children? Yes, it was dumb for him to be photographed but the man is a 12 gold medal Olympic winner. Let him celebrate his accomplishments. Parents need to stop looking for athletes, actors, and singers to be role models for their children. Spend some real time with your kids so they won't have to compensate with tv to show them right from wrong. HELLO!!! (Seems like common sense to me!)=P
2-10-2009 @ 4:25PM
Brenda said...
I m glad that kellog pulled out. Phelps whether he wants it or not...whether he was ready for it or not...is a role model. I hope that other sponsors pull out as well.
Reply
2-10-2009 @ 8:16PM
Gerry said...
Brenda, you are right! Kudos to Kellogs!
2-10-2009 @ 11:47PM
Andrea said...
To all Parents out there, such as yourself, who believe that athletes are or should be "ROLE MODELS", they owe you or your child nothing!! Role Models should begin at home with the child's father or mother period. Athletes or anyone else for that matters' only obligation in this world is, TO THEMSELVES, and to live the best life the way they chose to live it..... Phelps is not your babies father....Talk to your husband about being a Role Model!! And I am sure Phelps will get more endorsements in the future!! Most of the executives at Kelloggs probably do much worst than smoke pot themselves....
2-11-2009 @ 7:58AM
sfcat said...
That's ridiculous! Kellog's didn't care about his DUI and that was MUCH more serious and dangerous to others. Legalize marijuana, save us all a chunk of cash, and let the DEA concentrate on the highly addictive, easily fatal dangerous drugs.
2-11-2009 @ 8:41AM
Jason said...
your dad shoulda pulled out
2-11-2009 @ 9:36AM
Sieben said...
I pray that kellogg doesn't yield to these pot heads if pot is so wonderful you why don't you let your Children (10- - 15 ) smoke it ??? Where is america headed ?????
2-11-2009 @ 9:22AM
Jon Boy said...
Anyone Curious How Marijuana Works? I thought it was interesting...
http://www.curiousread.com/2008/08/how-marijuana-works-curious.html
2-11-2009 @ 10:11AM
joel goodman said...
i guess kelloggs is doing the right thing by pushing all of that sugar and salt on our children....obesity is also a major health hazard in our young...another reason to boycott kelloggs.
2-11-2009 @ 10:18AM
Ivan said...
Brenda,
Apparently you have never done anything wrong in your life. Get off you pulpit!!! It is easy to hide behind a screen name and cast stones from atop your high and mighty throne. I would love all our public officials to take a drug test and see how that comes out! Oh by the way, I hope you didn't vote for Obama??? He admitted to smoking dope and he holds the highest office in the Nation. Apparently taking drugs is not that big of a character flaw for say the 50 million plus Americans who voted for OBAMA!!!
2-11-2009 @ 11:16AM
Imaklutz said...
I agree. I don't really care if he chooses to smoke or not. Just do it in PRIVATE. I wouldn't want my child to see his hero smoking dope....
2-11-2009 @ 11:20AM
robert reed said...
So, you'd rather them condone the use of alcohol(which kills) rather than something that makes one go to sleep? I know, my grandfather, and a cousin both have died from ALCOHOL. I have NEVER heard of anyone dying from POT. YOU CAN'T, IT IS IMPOSSIBLE TO DIE FROM OVERDOSING ON POT. What a bunch of moranic inbisiles some of you can be.
2-11-2009 @ 12:16PM
right on! said...
good for kelloggs! to legalize or not to isn't the issure here.pheps a positive role models is .We need poeple youth can look at that ,leading by example the right way to grow and suceed , not just another pot head. Maybe Michael has a few more lessons dealing with fame and its responsility..
2-11-2009 @ 1:18PM
Joyce said...
I agree with Brenda. Phelps is supposed to be a role model to children. This action of his send a wrong message at a time where the moral and ethical decay in the US is at a all time low. Kids should know that this is not someone to look up to but to look down on. Maybe he spent too much time underwater.
2-11-2009 @ 1:17PM
Kim said...
Roll models start at home !!!!
I think there blowing this way out and I think they should just make marijuana legal and tax it. It helped my mother when she was going through chemo.
The news media needs to get a life and same with the county that is investigating this issue and work on more important issue out there NOT THIS !!!