Wednesday, April 1

"Cannabis stimulus"

Via Andrew, Mark Kleiman:
Legal cannabis, even taxed, would presumably be way cheaper than the current illicit product. Other things equal, that would mean that the legal cannabis industry would have lower revenues than the current illicit industry. That wouldn't stimulate the economy: just the reverse.

wtf? Cheaper legal cannabis means no resources being spent on the culture of illicit cannabis, which means less money in the hands of cartels and drug dealers, with some going to local governments via taxes and the rest staying in the pockets of cannabis users, all to be spent as they see fit.

I would never call re-legalization a short-term stimulus. It's the elimination of a long-term drag on the economy with very harmful effects.

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