The Economics Behind Marijuana and Its Illegality

By Joe Dimeck, published Mar 14, 2007
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Marijuana is one of the most commonly used illicit substances in the United States. However, the history of the drug is ripe with controversy ranging from its use to its illegalization. To truly understand the situation regarding marijuana it is only proper to look at the root of the controversy surrounding it.

Once the 1930s rolled around, and the prohibition of alcohol had failed tremendously, there was a feeling of failure in most prohibitionists' minds. One of the jaded prohibitionists, Harry J. Anslinger, soon found himself at the forefront of yet another prohibition movement in the United States. During the latter years of alcohol prohibition many Southwestern states were pushing for a law against marijuana as a means to persecute the Mexican immigrants who offered cheap labor during the Depression.

In response to the public's outcry for action, the Federal Bureau of Narcotics (FBN) was founded in 1930 as an agency of the United States Department of Treasury. Secretary of the Treasury, Andrew Mellon, felt his nephew-in-law, Harry J. Anslinger, was the perfect candidate for the job of FBN commissioner. While Anslinger was upset over the failure of the prohibition of alcohol, the cries for action against marijuana enabled Anslinger to focus his attention on a new scapegoat substance.

For the first 4 years of the FBN, Anslinger never felt cannabis to be a real threat, but he eventually changed his mind and began one of the most heinous campaigns of propaganda in the history of the United States. At the time the campaign began, accurate scientific studies of marijuana had not been conducted; in fact, marijuana was not properly studied until the 1950s, long after the Marihuana Tax Act of 1937 was passed. Most of the evidence used to lead the Supreme Court in their decision to pass the Marihuana Tax Act was created and distributed by the FBN.

 
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Pretty good article, Joe. However, I was expecting a little more as it related to economics. You actually presented more of a history (legal and social) with some possible reasons as to who was involved in the decision making. You might want to look up some of the working papers and articles published by professors of economics that are researching drugs in general. You completely left out the marijuana gateway effect - the idea that marijuana leads to harder drug use which is another argument law makers use. Professor Jeffrey DeSimone has written two papers on the marijuana gateway effect. He's also written papers on cocaine, one of which I was able to see him present. I haven't kept up with him until recently this article reminded me of Dr. DeSimone, he is working on alcohol and high school performance. In addition, check out some of the drug related research dome by Steven Levitt, author of Freakonomics. I can't say enough positive things about Steven Levitt. At any rate

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Posted on 04/09/2007 at 10:04:00 AM

 
What a well written article. As someone who has been smoking for 30 years, who comes from the UK, who has enjoyed many a stroll through the streets of London with a spliff/joint in hand, with not an eye being batted, I say to those who think they know the meaning of freedom - think again!

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Posted on 04/06/2007 at 10:04:00 PM

 
Good article, but the Supreme Court does not "pass law". You might want to rephrase that.

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Posted on 04/01/2007 at 8:04:00 PM

 
personally I think that though marijuana should be legalized- the concept that it is "not harmful" is ridiculous, the fact of the matter is that it obviously leads to impairment of the reflexes and smoking it long term leads to lung disease, as well the slow release from fat stores can have very unpredictable behavioral swings in the long term situationally. I do though think that these things are not significant enough to warrant an "illicit" drug status and there are many benefits that could be gained from the crop, even if we had a non thc producing breed to use for industrial and energy consumption purposes.

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Posted on 04/01/2007 at 6:04:00 PM

 
why is this entitled "the economics of marijuana" there is nothing whatsoever about economics except the cost of a year of incarceration it's like this was written by a stoned high school sophomore. very little specific information, what is stated is already widely known, covers too much information in not enough detail

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Posted on 04/01/2007 at 4:04:00 PM

 
the only people who read this article and find it interesting, are marijuana users, like me. The problems are that we are a minority, we dont have poltical power, economic power, or media power enough to change the current illegal state of marijuana comsumption. The majority doesnt care, or are indifferent. To decriminalize comsumption, is don't done by point at the "facts", but find other ways of dealing with the illegalization of marijuana.

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Posted on 04/01/2007 at 5:04:00 AM

 
Fantastic article! Your writing is clear, concise and packed with great information. I really hope more people start to figure out how harmless marijuana is. It would be good for this country to approach the issue from a more educated and informed standpoint. I will forward this to everyone I know. Great job!

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Posted on 03/20/2007 at 11:03:00 AM

 
You should read this excellent book called Diary of Hasheesh Eater, by Fitz Hugh Ludlow. It is from the 19th century when Cannabis was legal. He consumed it through a medicine that had a really high percentage of THC in it and had psychedelic experiences and described them. I wrote about it in an article about drug-inspired books for AC.

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Posted on 03/19/2007 at 8:03:00 AM

 
Maybe in 50yrs they will just make everything legal. Why doesnt the gov't make it legal then sell it. Beats taxing the general public more than they already do. Or use the money made from those substances to fight cancer even though that might be an odd choice since smoking would cause it but then again tobacco companies already do that.

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Posted on 03/18/2007 at 2:03:00 PM

 
...endorphins flowing. Some folks develop physical dependency on MJ, but they are in minority. You didn't address the "gateway drug" myth, often cited as reason for keeping MJ illegal The REAL gateway drug is tobacco. MJ is in legal classification I with Heroine, because there were no medical uses known at the time. That has changed, but the classification has not. Good article! Thanks for the read.

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Posted on 03/18/2007 at 7:03:00 AM

 
I once wanted to be a drug abuse counselor and took some related college classes, but later changed my major. This article concurs with information we were given in class about the history of illegalization of Marijuana. One of the reasons MJ is so prevalent among our young is the restrictions on alcohol use. While in Norway no alcohol can be purchased before 5pm, most European countries have no such restrictions and legal drinking age is usually low and scarcely enforced. Hence, less need for alternative intoxicants. Drinking and driving, however is rigorously enforced in most European countries. As to the addictive properties of MJ: they do exist, although they are predominantly phsycological, rather than physical. Psychological addictions are sometimes more difficult to break, but people are psychologically addicted to lots of stuff: porn, video games, internet, exercise, dieting, sugar, and the most destructive one - gambling. Let's face it, we'll go for anything that gets the

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Posted on 03/18/2007 at 7:03:00 AM

 
(sorry, ran out of room) side effects, some much more serious. It has many medical benefits. Marijuana is also a potent aphrodisiac and could well be beneficial to many people in that area as well. Wonderful and insightful article!

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Posted on 03/17/2007 at 10:03:00 PM

 
Okay, I decided to go ahead and give my opinion on such a controversial issue. I grew up at a time when almost everyone smoked marijuana to some degree, even if they pretended they didn't. That was a long time ago for me, but marijuana is not addictive physically. I had not the slightest withdrawals, ever. Nicotine is another story, I fought that battle my entire adult life and quit just over 2 yrs. ago. Alcohol should be illegal. Sadly, someone is probably being killed by a drunk driver as I write this. I have seen people die from cigarettes and alcohol addiction, I've never seen anyone die from marijuana. The old myth that marijuana leads to "other" addictive drugs is nonsense. If someone is going to use other drugs, they will do it with or without marijuana being available to them. It does have medical benefits and I do know someone who does need the medical benefits derived from marijuana and it's sad she has to purchase it illegally, when legal prescription drugs have risks and si

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Posted on 03/17/2007 at 10:03:00 PM

 
leagalize it

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Posted on 03/17/2007 at 5:03:00 PM

 
I am publishing this anonymously for my own protection with future employers and what not... (which is ridiculous in and of itself), but I just want to commend you on a very good article! I have read too many "legalize marijuana" articles that are not well written or properly research. This article rocks!

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Posted on 03/17/2007 at 4:03:00 PM

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