$42 Billion Dollars a Year

[Einhander Sn0m4n]

The War on Pot: America's $42 Billion Annual Boondoggle

By Rob Kampia, AlterNet. Posted October 9, 2007.

What else could we spend $42 billion each year on? Health insurance for kids? Better paid teachers? It's our choice.



What would you buy if you had an extra $42 billion to spend every year? What might our government buy if it suddenly had that much money dropped onto its lap every year?

For one thing, it might pay for the entire $7 billion annual increase in the State Children's Health Insurance Program that President Bush is threatening to veto because of its cost -- and there'd still be $35 billion left over.

Or perhaps you'd hire 880,000 schoolteachers at the average U.S. teacher salary of $47,602 per year.

Or give every one of our current teachers a 30 percent raise (at a cost of $15 billion, according to the American Federation of Teachers) and use what's left to take a $27 billion whack out of the federal deficit.

Or use all $42 billion for a massive tax cut that would put an extra $140 in the pockets of every person in the country -- $560 for a family of four.

The mind reels at the ways such a massive sum of money could be put to use.

Why $42 billion? Because that's what our current marijuana laws cost American taxpayers each year, according to a new study by researcher Jon Gettman, Ph.D. -- $10.7 billion in direct law enforcement costs, and $31.1 billion in lost tax revenues. And that may be an underestimate, at least on the law enforcement side, since Gettman made his calculations before the FBI released its latest arrest statistics in late September. The new FBI stats show an all-time record 829,627 marijuana arrests in 2006, 43,000 more than in 2005.

That's like arresting every man, woman and child in the state of North Dakota plus every man, woman, and child in Des Moines, Iowa on marijuana charges ... every year. Arrests for marijuana possession -- not sales or trafficking, just possession -- totaled 738,916. By comparison, there were 611,523 arrests last year for all violent crimes combined.

Basing his calculations mainly on U.S. government statistics, Gettman concludes that marijuana in the U.S. is a $113 billion dollar business. That's a huge chunk of economic activity that is unregulated and untaxed because it's almost entirely off the books.

Of course, the cost of our marijuana laws goes far beyond lost tax revenues and money spent on law enforcement. By consigning a very popular product -- one that's been used by about 100 million Americans, according to government surveys -- to the criminal underground, we've effectively cut legitimate businesspeople out of the market and handed a monopoly to criminals and gangs.

Strangely, government officials love to warn us that some unsavory characters profit off of marijuana sales, while ignoring the obvious: Our prohibitionist laws handed them the marijuana business in the first place, effectively giving marijuana dealers a $113 billion free ride.

All this might make some sense if marijuana were so terribly dangerous that it needed to be banned at all costs, but science long ago came to precisely the opposite conclusion. Compared to alcohol, for example, marijuana is astonishingly safe. For one thing, marijuana is much less addictive than alcohol, with just nine percent of users becoming dependent, as opposed to 15 percent for booze. And marijuana is much less toxic. Heavy drinking is well-documented to damage the brain and liver, and to increase the risk of many types of cancer. Marijuana, on the other hand, has never caused a medically documented overdose death, and scientists are still debating whether even heavy marijuana use causes any permanent harm at all. And then there's violence. Again, the scientific findings are overwhelming: Booze incites violence and aggression; marijuana doesn't.

Despite all that, we now arrest one American every 38 seconds on marijuana charges. And we do so at a staggering cost in law enforcement expenses, lost tax revenues, and staggering profits for criminal gangs.

The alternative is clear: Regulate marijuana just as we do beer, wine, and liquor. The only thing lacking is the political will.

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[Hawkwings]

Wouldn't regulation cost money as well? Perhaps even most of the 42 billion? Granted, taxes and whatnot on it would make up some, but still, doing things costs money no matter whether it's putting people in jail or putting this stuff in stores.

And can someone point me to some studies on marijuana effects? Preferably comparisons to tobacco and alcohol as well?

[Uraniun235]

Wouldn't regulation cost money as well? Perhaps even most of the 42 billion?

How much does it cost to regulate the tobacco industry?

[Sriad]

The 42 gigadollar figure is the current cost of fighting marijuana. Even if it were legal and ONLY subjected to a 10% tax (instead of the far higher taxes on gasoline or cigarettes) it would generate a further $11 billion per year which could be used for regulation and hiring another 8,000 school teachers.