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Milton Friedman, 500+ Economists Call for Marijuana Regulation Debate as New Report Estimates Savings
New Report Projects $10-14 Billion Annual Savings and Revenues
FOR IMMEDIATE RELEASE | commondreams.org June 2, 2005 9:27 AM

BOSTON -- June 2 --In a report released today, Dr. Jeffrey Miron, visiting professor of economics at Harvard University, estimates that replacing marijuana prohibition with a system of taxation and regulation similar to that used for alcoholic beverages would produce combined savings and tax revenues of between $10 billion and $14 billion per year. In response, a group of more than 500 distinguished economists -- led by Nobel Prize-winner Dr. Milton Friedman -- released an open letter to President Bush and other public officials calling for "an open and honest debate about marijuana prohibition," adding, "We believe such a debate will favor a regime in which marijuana is legal but taxed and regulated like other goods."

Using data from a variety of federal and state government sources, Miron's paper, "The Budgetary Implications of Marijuana Prohibition," concludes:

**Replacing marijuana prohibition with a system of legal regulation would save approximately $7.7 billion in government expenditures on prohibition enforcement-$2.4 billion at the federal level and $5.3 billion at the state and local levels.

**Revenue from taxation of marijuana sales would range from $2.4 billion per year if marijuana were taxed like ordinary consumer goods to $6.2 billion if it were taxed like alcohol or tobacco.

These estimates may be conservative. Because available data is incomplete, assumptions necessary to produce national estimates inevitably allow for some variation up or down. For example, Miron's report does not include estimates for certain potential savings -- such as the likelihood of fewer criminal justice referrals of marijuana offenders to drug treatment and reduced prison costs stemming from persons on parole or probation being reincarcerated after positive urine tests for marijuana. In addition, Miron based his figure for corrections costs stemming from marijuana prohibition on an estimate that one percent of state prisoners are imprisoned for marijuana- related offenses. A report released May 18 by the White House Office of National Drug Control Policy put the figure at 1.6 percent, acknowledging that tens of thousands of Americans are incarcerated in state or federal prisons for marijuana offenses.

While Miron notes that many factors beyond costs and tax revenues would need to be considered in evaluating possible changes in marijuana laws, he said, "These budgetary impacts should be included in any rational debate about marijuana policy."

Those impacts are considerable, according to officials of the Marijuana Policy Project in Washington, D.C. For example, $14 billion in annual combined annual savings and revenues would cover the securing of all "loose nukes" in the former Soviet Union (estimated by former Assistant Secretary of Defense Lawrence Korb at $30 billion) in less than three years. Just one year's savings would cover the full cost of anti-terrorism port security measures required by the Maritime Transportation Security Act of 2002. The Coast Guard has estimated these costs, covering 3,150 port facilities and 9,200 vessels, at $7.3 billion total.

"As Milton Friedman and over 500 economists have now said, it's time for a serious debate about whether marijuana prohibition makes any sense," said Rob Kampia, executive director of the Marijuana Policy Project in Washington, D.C. "We know that prohibition hasn't kept marijuana away from kids, since year after year 85% of high school seniors tell government survey-takers that marijuana is 'easy to get.' Conservatives, especially, are beginning to ask whether we're getting our money's worth or simply throwing away billions of tax dollars that might be used to protect America from real threats like those unsecured Soviet-era nukes."

Dr. Miron's full report, the open letter to public officials signed by more than 500 economists, and the full list of endorsers are available at http://www.prohibitioncosts.org.

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Cassius

Omg, some people in the world are coming to their senses! Actually defending something that is right despite the taboo against it!

Prohibition -- the third rail of American public opinion

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{ Cassius, Your Humble Narrator }
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Buzzby

Despite the total failure of prohibition to control drug usage and the disastrous economic and social effects it causes, being a prohibitionist is still political capital. Politicians tend to take up positions that will buy them votes or, at least, not lose them votes. Being pro-legalization is still seen by a major part of the electorate as being in favor of anti-social behavior and a degenerate, wasted way of life.

Despite the economic arguments, it's hard for me to imagine the conservative, fundamentalist-leaning electorate that put our current regime in power ever voting for politicians who are openly in favor of legalizing marijuana.

Until the majority is educated to understand that marijuana users are just like everybody else (but smarter ), this will remain the case. That's going to take a lot of advertising. That, in turn, is going to take a lot of money. The prohibitionists have the US government paying for their propaganda. We have only ourselves. To get the real story before the public eye, we need to financially support the organizations that are struggling to do so.

If we all spent 1% of what we spend on weed and accouterments funding these organizations they'd have half a billion dollars to work with every year instead of the measly six to eight million they have now.

National Organization for the Reform of Marijuana Laws (NORML)

Marijuana Policy Project (MPP)

Drug Policy Alliance (DPA)

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Lothar121

This is a powerful report that makes a case to fiscal conservatives around the United States and is a juicy plate to place in front of numerous states that are suffering from deficits including our Federal government. Let's face it, we are broke, and marijuana legalization and regulation would free up resources and bring in new funds. The argument is strong, but the financing is on the other side. We are a minority, but keep in mind a large minority.

We also have another report by Citizens Against Government Waste about inefficiencies within our drug policy found at http://www.cagw.org/site/PageServer?...e=reports_drug. It's a few weeks old but it's nice to see these fiscal reports coming out that could influence fiscal conservative policy makers. Keep in mind that the majority of Republicans in office are social conservatives, not fiscal, but it makes a compelling case nevertheless.

If you have not joined a reform organization, you need to because in order to achieve the freedom to use cannabis in the privacy of our homes, we need these organizations to have money to implement our strategy.

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Cassius

Cannabis... the savior of social security!

 

Higher Logic

Here's the complete report if anyone's interested. And if you look at all the endorsers, that's a lot of people in universities. Too bad they aren't from churches, Bush would pass this in a heart beat

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SkyTripper

What I find so disturbing about this news is that it HAS been known for such a very long time now that this entire "War on Drugs" has been a colossal WASTE of tax money for at least 35 years and NOW they finally release a report which could possibly influence the mainstream conservative part of America to finally consider marijuana legalization as a financial savior to a nation rapidly going broke.
If these idiots would not have been so stubborn for so long as to perpetuate their obvious lies and propaganda regarding marijuana alone.....BILLIONS....maybe close to a TRILLION dollars either could have been saved or generated for much better use in this country for a long time by now! In legalization though....or better yet...ENDING the "War on Drugs" completely....would surely result in a MAJOR reduction needed for police, corrections officers, probation officers, DEA, Border Patrol, etc....UNLESS they just SHIFTED their manpower and resources to the PROTECTION of America....its borders and ports, etc.
Marijuana DEFINITELY NEEDS COMPLETE LEGALIZATION at all levels of government in America....ASAP!!!!
These economic statistical savings or revenue forecasts are quite possibly far LESS of what could actually be more accurate if it were legal, regulated and taxed as alcohol and cigarettes are. If it ever were to happen though....I believe that NOBODY should have to pay close to what high quality buds are currently going for on the black market today as $250-$500 oz. IS RIDICULOUS! It only goes to show that people ARE willing to pay an awful lot for it though. If it were legal and sold in "pot stores" or whatever to a market for those 18 and older, heavily taxed as cigarettes are, I believe $75-$200 oz. is even fair for those who do not wish to grow their own and I believe business would still be booming. The revenue generated would certainly be close to 30-50 BILLION DOLLARS annually in pot sales alone in America, IMO. On top of the savings in law enforcement by ending the criminal penalties for marijuana....other than (minor in poss. or illegal transport, tax evasion, and possibly a few others which I'm sure they would come up with)....overall savings would account for BILLIONS more and easily contribute 75-150 BILLION extra dollars for this country annually!
The real question though is.....WOULD OR COULD all those who have supported prohibition EVER ACCEPT something so radical as what effectively would be the harsh realization of their folly and an admittance of DEFEAT at something they poured so much of our money into for so long.....just to finally "throw in the towel" for the sake of generating revenue or saving money.....NOW after all these years! They would be forced to acknowledge....that they FLUSHED close to a TRILLION DOLLARS down a toilet and CONTRIBUTED to millions of peoples' loss of potential in chances of employment because of criminal records, property seizures, drug testing, loss of freedom/civil liberties, spying on ourselves, incarceration, breaking up families , deaths, suicides, WIDESPREAD corruption and a plethora of many other issues facing society today as a DIRECT RESULT of the persecution they inflicted on their own because of this "War on Drugs!"
Oh yeah.......I'm sorry, it was OUR fault solely for being "addicted." Or was it because we just would NOT conform?
It was all just a war against FREEWILL!

Ending the drug war entirely......priceless.

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SkyTripper

Higher Logic

I don't think that's fair. I can practically get an ounce as it is for $200, so why would I still want to be even half of that if it were legal? An ounce should cost me about $5-10, that's a very reasonable amount for a simple ounce, especially considering a pack of cigarettes is darned close to an ounce.

SkyTripper

Yeah.....that $75- $200 oz. price range for "legal" weed IS way too high, but I guarantee you that IF it ever were legal....I seriously doubt it will sell for as little as $5-10 oz.
They are already very aware of what people are currently paying for it and they would truly WANT to make a LOT more money off of taxing the hell out of it as well as keep the prices somewhat high as a financial discouragement to using it at all.
Besides....they are already making a nice chunk of change as it remains today on the black market.....especially if there IS direct involvement with drug or (marijuana) sales and the US govt.
$5-10/ounce would be GREAT though but if that were the going rate.....most EVERYONE WOULD be smoking.... overnight! That would scare the crap out of a large portion of society. 80% of the population would be stoned more often than not, IMO.
I could be wrong though. But I do believe that many people just don't smoke at all....or nearly as much as they would....if weed was not nearly as expensive as it is these days. Most people just settle with the schwag because of the high cost of the really good stuff.....and that's just WRONG!

Higher Logic

They are already very aware of what people are currently paying for it and they would truly want to make a lot more money off of taxing the hell out of it as well as keep the prices somewhat high as a financial discouragement to using it at all.

Then people would just grow their own if the prices were too high, remember, we're not dealing with something like tobacco. Cannabis is relatively easy to grow, cure, and use.

$5-10/ounce would be great though but if that were the going rate most everyone would be smoking overnight!

I don't see why or how that would happen. My consumption wouldn't skyrocket because I can now buy an ounce for $10. I'm still going to smoke the same, if not less.

80% of the population would be stoned more often than not.

I don't think because it would be (a) legal and (b) cheap that everyone would start smoking. The people that did before it was made legal would continue to, and those that didn't would probably not start. A small percentage might, but that's like saying because the Dutch have legalized (basically) cannabis that everyone smokes it. Not true. The opposite is the case.