Wednesday, July 07, 2010

Legalizing Marijuana Would Cause Prices To Plummet

Lisa Leff, A new study says legalizing the recreational use of marijuana in California could sharply drive down prices for the drug and possibly undercut the tax windfall that supporters have touted.

The study published Wednesday by the RAND Drug Policy Research Center says "considerable uncertainty" surrounds the state ballot initiative. It would allow adults, 21 and over, to possess an ounce of marijuana and cities and counties to license and tax commercial pot sales.

The authors predict that retail marijuana prices could drop from $375 an ounce under the state's current medical marijuana law to as low as $38 per ounce.

According to the RAND analysis, consumers would pay more than that – about $91 an ounce – once taxes imposed by local governments are figured in.

LSB: Sure, some income to the state would be helpful, but the reduction in costs to adjudicate drug crimes and incarcerate petty criminals for offenses related to marijuana would be an even greater cost savings. Legalizing weed would free law enforcement to concentrate on more serious crimes, and let's not forget that consumers could be assured of purchasing weed without enhancements, making it a bit safer. Aren't we just going through the same societal angst that we went through with legalizing alcohol a century ago?

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