Anyone who has ever read Milton Friedman's Free To Choose (a book everyone
interested in Economics should read at some point in their life) knows that
Friedman is a staunch supporter of the legalization of marijuana. Friedman
isn't alone in that regard, as he joined over 500 economists in signing An Open
Letter to the President, Congress, Governors, and State Legislatures on the
benefits of legalizing marijuana. Friedman isn't the only well known economist
to sign the letter, it was also signed by Nobel Laureate George Akerlof and
other notable economists including Daron Acemoglu of MIT, Howard Margolis of
the University of Chicago, and Walter Williams of George Mason University.
The letter reads as follows:
We, the undersigned, call your attention to the attached report by Professor
Jeffrey A. Miron, The Budgetary Implications of Marijuana Prohibition. The
report shows that marijuana legalization -- replacing prohibition with a system
of taxation and regulation -- would save $7.7 billion per year in state and
federal expenditures on prohibition enforcement and produce tax revenues of at
least $2.4 billion annually if marijuana were taxed like most consumer goods.
If, however, marijuana were taxed similarly to alcohol or tobacco, it might
generate as much as $6.2 billion annually.
The fact that marijuana prohibition has these budgetary impacts does not by
itself mean prohibition is bad policy. Existing evidence, however, suggests
prohibition has minimal benefits and may itself cause substantial harm.We
therefore urge the country to commence an open and honest debate about
marijuana prohibition. We believe such a debate will favor a regime in which
marijuana is legal but taxed and regulated like other goods. At a minimum, this
debate will force advocates of current policy to show that prohibition has
benefits sufficient to justify the cost to taxpayers, foregone tax revenues,
and numerous ancillary consequences that result from marijuana prohibition. I
highly recommend anyone interested in the topic to read Miron's report on
marijuana legalization, or at the very least see the executive summary. Given
the high number of people who are incarcerated each year for marijuana offences
and the high cost of housing prisoners, the $7.7
billion in expected savings seems like a reasonable figure, though I would
like to see estimates produced by other groups.
I'd love to hear your thoughts on the legalization of marijuana and on Miron's
report. You can contact me by using the feedback form.
Marijuana Legalization Links
Milton Friedman, 500+ Economists Call for Marijuana Regulation Debate
