Big Weed

Public pressure and the potential for increased tax revenue has pushed pot into legal territory.

In the 1920s in the United States, the federal government prohibited the sale and consumption of alcohol. Yet Prohibition was a disaster; the greater public flaunted the law at every turn and the government lost millions in tax revenue. The laws were eventually repealed.

Today, marijuana is America’s bathtub gin. While many law enforcement officials continue to demonize pot, public support for the decriminalization of marijuana has been steadily rising.  

Despite prolific warnings over the dangers of using drugs, it’s clear that the so-called war on drugs in America has been a failure. Not only have thousands of people been incarcerated for essentially non-violent crimes but also drug policies have destroyed families and lives.

Yet the benefits of a drug like marijuana are many. It can act as powerful medicine to ease the suffering of the chronically ill, for example. Proponents thus say pot should be made legally available to such groups. Why deny chemotherapy patients medicine that could ease their suffering?

Separately, politicians have started to understand just how much money can be made from legalizing the sale of marijuana.

In the few U.S. states where the drug is now legal, tax revenue is filling state coffers. In 2009 alone, Colorado, a western state that has led the charge for legalization, collected some $3 million in taxes, fees and associated costs.

Public pressure, combined with the backing of select politicians, has led to huge changes in marijuana policy. While many states have passed statutes allowing marijuana only for medical use, states like Colorado also have legalized pot for recreational purposes.

This more liberal attitude toward marijuana is sure to increase, giving rise to a “new world of marijuana.” Yet rather than being a business controlled by gangsters and drug cartels, it will be a normal industry with brands, business strategies and tax accountants.