If Marijuana was Legalized, Prices Would 'Dramatically Drop,' Finds Report

[Ganjarden]

One ounce of marijuana today is $375. If Californians vote for Prop 19 or if the state legislature and Governor approve AB 2254, the price could drop to $38 per ounce, says the RAND Corporation in a study released today. Called Altered State? Assessing How Marijuana Legalization in California Could Influence Marijuana Consumption and Public Budgets, the report examines the likely increase in usage, how much tax revenue could be generated and other issues.

One issue especially may be highly debated over the coming months. It's often said that legalizing marijuana will free the state from enforcing the drug. But RAND "estimates that the cost of enforcing the current laws probably totals less than $300 million." Whether that's true or not, it could become a focal point of the opposition.

Other findings incude the increase of usage, which could be 50 to 100% more than now, matching the 1970s. Despite that increase, researchers feel tax revenues will not blow away the charts.

"A fixed excise tax per ounce may give producers and users an incentive to shift to smaller quantities of higher-potency forms of marijuana," said study co-author Jonathan P. Caulkins of Carnegie Mellon University. He said that kind of shift would be one factor that could lower revenues collected from marijuana taxes.

Even at current estimates, legalizing and taxing marijuana would not fix the state budget. That sort of notion is "offensively false" to Mark Kleiman, a UCLA Professor of Public Policy who said that on KPCC's Air Talk on Monday. Marijuana would bring in $1.4 billion to the state, according to a state analysis. That amount helps, but wouldn't fix the nearly $20 billion budget gap the state currently faces.

But one thing studies haven't addressed yet is the effect of tourism. How much of the country would flock to California to enjoy a legal smoke?


NewsHawk: Ganjarden: 420 MAGAZINE
Source: LAist
Author: Zach Behrens
Copyright: 2010 Gothamist LLC

* Thanks to MedicalNeed for submitting this article

 

[TorturedSoul]

One issue especially may be highly debated over the coming months. It's often said that legalizing marijuana will free the state from enforcing the drug. But RAND "estimates that the cost of enforcing the current laws probably totals less than $300 million." Whether that's true or not, it could become a focal point of the opposition.

So, near $300M? And how much has one of the opposition's projects freed up from the California budget lately? Let them bring it up first.

Other findings incude the increase of usage, which could be 50 to 100% more than now, matching the 1970s. Despite that increase, researchers feel tax revenues will not blow away the charts.

Odd that in many countries where this or another drug has been at least decriminalized, usage either did not rise significantly or it actually went down.

I suggest that it is more likely that your mild-mannered neighbor will admit to consuming in the future, where now he keeps it secret.

And where is the study that found out how many of the projected users of cannabis will be people that currently use alcohol now, but will either switch completely or reduce their drinking?

Even at current estimates, legalizing and taxing marijuana would not fix the state budget. That sort of notion is "offensively false" to Mark Kleiman, a UCLA Professor of Public Policy who said that on KPCC's Air Talk on Monday. Marijuana would bring in $1.4 billion to the state, according to a state analysis. That amount helps, but wouldn't fix the nearly $20 billion budget gap the state currently faces.

It's offensive to me, come to think of it. They can't expect us heads to fix ALL of their problems. The only thing that will fix California's budget problem is a drastic reorganization of that budget, streamlining the bureaucracy, and putting a modicum of intelligence into deciding what will actually be funded.

But the money won't hurt.

 

[corners]

"estimates that the cost of enforcing the current laws probably totals less than $300 million."

I dont think this number takes into consideration the $35,000 + or more it costs to incarcerate someone for a year in prison.

People have been saying for decades the war on drugs fuels the prices thus the profit motive for selling illegal drugs. You would think all the capitalist and their anti drug czars would understand this since every day they spew the benefits of a free market.

 

[corners]

Question tho, is the RAND Corporation connected at all to any of the dispensaries currently running in Cali? Been hearing stories some of the big money behind the dispensaries dont want to see legalization because they wont be making the big bucks they make now

 

[SnowBender]

I can buy a bottle of wine for 2$ or 200$. A car for 10k or 500k. And RAND thinks there will be only one quality and price point for recreational weed?

Have you seen the price difference between flying first class and coach lately?

Did RAND just hand over the study to a 6th grade statistics class, and publish what ever they came up with?

 

[G-Dog]

What you will see if legalized is a huge raise in use.

What you will also see is pot tourism.

What you will also see is a demand in seeds.

What you will also see is a huge range in quality.

What you will also see is the police scrambling to justify their existence in cracking down on more dangerous drugs, like meth.

It is win/win for all of us. No Brainer. And I can go to the streets of Arcata right now and get some great weed (as a stranger) for $240 an oz.

 

[free2blaze]

I can buy a bottle of wine for 2$ or 200$. A car for 10k or 500k. And RAND thinks there will be only one quality and price point for recreational weed?

Have you seen the price difference between flying first class and coach lately?

Did RAND just hand over the study to a 6th grade statistics class, and publish what ever they came up with?

very good point, snowbender.