Quote Originally Posted by dragonrider
This cannabis abolition is causing the same kinds of social costs that alcohol abolition caused. It funnels money into an organized black market, and there is so much money involved at the higher levels that it fuels violence and corruption. I agree totally that if the government were to legalize it and tax it, they would free up police who now waste their time pursuing cannibis users, growers and dealers. And the revenues would be enormous --- we'd probably balance the budget in the first year. I don't know that it would bring about a new utopia, but it would be a step in the right direction!
i agree.

However, there is no incentive for legalization. Miami is a great example. Before smugglers discovered Miami and Florida, it was nothing but retirees. Since smugglers used it as a haven, the Miami economy was built up on drug profits. While many places suffered in the recession, Miami was recession-proof. It didn't matter if it was legal or not. Money was to be made.

Legalization would improve the social situation. There would not be violence, and they'd be oversight on distribution, but economically, it wouldn't make a difference. Revenue is revenue. Drug dealers have to spend their money somewhere and it goes back into the economy anyway. The government loses a windfall in taxes, but they have plenty of incentives to keep it illegal. The law enforcement industry is profitable, and they'd do anything not to lose any funding. The legalization of marijuana is dangerous to them, it'll cost them jobs.

If the government of the United States were truly free-market, they'd tear down the barrier of entry to the hemp and marijuana industries. It makes sense on so many levels, but the economic incentive is not great enough to do so. Money talks, bullshit walks.