The Financial Crisis Just Might Lead to Legal Pot

NEW YORK -- In 1977, President Jimmy Carter asked Congress to decriminalize marijuana possession (it never did). The next year, the Ladies Home Journal described a summer jazz festival on the White House's South Lawn where "a haze of marijuana smoke hung heavy under the low-bending branches of a magnolia tree."

The late 1970's may have been the high-water mark for permissiveness regarding marijuana. But advocates of decriminalized pot believe a confluence of factors, especially the country's economic malaise, are leading to another countrywide reappraisal of the drug.

"There is momentum of the sort I haven't seen since I've been involved in this," says Ethan Nadelmann, executive director of the New York-based Drug Policy Alliance, which supports easing marijuana laws.

He says incidents like then-candidate Barack Obama's early admission of pot use or the flap over Olympic swimmer Michael Phelps's bong-smoking may lead to initial public hand-wringing, but in the end they tend to legitimize pot use. So does the growing recognition of medical marijuana.

But, he adds, "the economic crisis is the single most important factor" in this new shift in perceptions.

That's because the ailing economy is triggering a scramble for new government savings or sources of revenue. Nadelmann compares today's marijuana laws to alcohol prohibition, approved during prosperous times in 1920 only to become unpopular during the Great Depression. Prohibition was finally repealed in 1933, in part due to the cost of reining in illegal booze and the need to recoup lost tax revenue in tough economic times.

As he signed a law easing prohibition, President Franklin Roosevelt reportedly quipped, "I think this would be a good time for a beer."

Is our recession-plagued present a good time for a joint? Legalizing, taxing and regulating marijuana, would pull the rug out from under pot dealers in urban America, and create a crisis for them, but it would likely prove a boon for state budgets. In an oft-cited 2006 report on U.S. marijuana production, expert Jon Gettman used "conservative price estimates" to peg the value of the annual crop at $36 billion--more valuable than corn and wheat combined.

Three national polls this year showed a surprising number of Americans think marijuana should be legal. Zogby, CBS News and Rasmussen all recorded support for legalization hovering at around 40 percent. Nadelmann of the DPA believes support would have been higher if the question was whether or not marijuana should be taxed and regulated.

California Assemblyman Tom Ammiano has proposed a bill to tax and regulate legal marijuana, which he says would generate $1 billion in revenue for the Golden State's anemic budget. Ammiano, who represents areas of San Francisco, says his proposal, unveiled last month, is "simply common sense," considering the unprecedented economic emergency. The measure would also save California an estimated $150 million in enforcement costs.

Rising support for decriminalization has also come from drug war-ravaged Latin America. Former presidents of Colombia, Mexico and Brazil headed the 17-person Latin American Commission on Drugs, which included intellectuals and statesmen. It issued a report last month calling the drug war failed. It called, among other changes, for the personal use of marijuana to be decriminalized.

Currently, marijuana is already decriminalized in some form in 13 U.S. states, including California and New York, according to the National Organization for the Reform of Marijuana Laws (NORML). Typically in these states, marijuana possession in small amounts is reduced to a minor offense punishable by a low fine. Alaska has a particularly liberal law, allowing possession of up to an ounce of pot at home without penalty.

Some eight additional state legislatures are currently considering decriminalization, or the expansion of already existing allowances, according to NORML.

No other state has gone as far as the sweeping "tax and regulate" plan Ammiano proposed for California, but all this talk of legalizing pot has Eric Voth, M.D., deeply worried. Voth, chairman of the Institute on Global Drug Policy, believes advocates of legal marijuana are exploiting the country's economic insecurities to advance their agenda, despite evident risks.

Pointing to alcohol and tobacco, which are taxed, he argues the resulting revenue hardly compensates for the social and public health damage wreaked by both substances, including spillover use among youth. In the 1970s, when marijuana use was at its peak, some 11 percent of high school seniors used marijuana daily, whereas today only between two and three percent do so. If marijuana were legal, more kids would smoke it and face health, addiction and learning problems, says Voth, who advised the White House under Republican and Democratic administrations. "I'm not a prohibitionist, I'm a physician and I've seen those problems face-to-face in the trenches."

But, as Voth himself admits, the lobby to decriminalize marijuana is increasingly organized, with a strong presence in state capitols and Washington, D.C. When Ammiano announced his California plan, he enlisted the DPA and the Marijuana Policy Project to back him up. "High Times," the popular pot enthusiasts' magazine, has spearheaded its own "420 campaign" for marijuana legalization. Libertarian organizations, like the Cato Institute, tend to be skeptical of pot prohibition, too.

But there are legal questions over states' efforts to decriminalize. Lenient state laws (not to mention Ammiano's legalization plan) clash with separate federal laws on marijuana, which are strict, calling for up to a year imprisonment and a $1,000 fine for possession of any amount, even if it's a first offense.

Last year, U.S. Rep. Barney Frank (D-Mass.), sponsored legislation to decriminalize marijuana federally, earning a handful of co-sponsors, but the bill quickly stalled in committee.

Ammiano says his plan isn't radical, since pot would simply be taxed just as tobacco and alcohol are now. But for his opponents that comparison sets off alarm bells.

Both industries have a bad record of facing up to the adverse health effects of their products and its availability to underage users. A legally sanctioned marijuana industry, opponents say, would open the door to another powerful, cynical, corporate dispenser of legal drugs.