Wednesday, December 12, 2012

Holding Our Breath

Imagine a world without alcohol. Or a world where alcohol can only be obtained by dealing with clandestine and sometimes sketchy homebrewers and illicit moonshine operators (sort of like Prohibition but not quite, since alcohol was legal before Prohibition was passed and many of the economic and "infrastructure" elements contributing to alcohol's consumption were already in place, like bars, breweries, taxes, etc.).

Now imagine this highly sought after drug suddenly being legalized, in effect creating a new and lucrative commodity out of thin air. That's pretty much how normalization of existing marijuana policy might affect our economy and society.

By now most Americans are aware of recent voter initiatives in Colorado and Washington state that legalize the use, production and commercial distribution of marijuana. Over the next year or so each state will be tasked with determining how best to proceed in developing a system for regulating, taxing, monitoring and distributing both the drug and its expected revenues. However, nearly everyone is holding their collective breath (for those that did inhale) as the federal government decides what to do. Under federal law marijuana is still classified as a Schedule I drug under the Controlled Substances Act. So, all or parts of each state's laws could be invalidated unless federal law is changed, or the entire matter gets lobbed over to the courts and packaged as a state's rights issue. So far, the Obama administration has given little indication of what it intends to do -- and for good reason, the effects of federal acquiescence on this issue are likely to be both far reaching and profound.

To begin with, the states of Colorado and Washington will probably enjoy an immediate and "value added" advantage within their respective economies by being able to grow, market, dispense and 'export' high quality commercial marijuana products more efficiently than anyone else (including drug dealers) -- exports being defined here as sales to out of state residents as the product is transported across borders to various regions of the country (which, as Amsterdam can attest, includes another benefit, pot-centric tourism). There will also be massive new revenues to allocate. But, if the situation gets to that point it will only be because the federal government and courts have allowed it to do so, and most other states are likely to pass initiatives of their own very quickly, given the immense revenue potential to be gained. So any advantage for early adopters might be short-lived.

Continuing with the 'new' commodity analogy, what will then be needed to bring marijuana fully into the mainstream?

Let's start with the producers: Who gets to plant it? How are they licensed and regulated? Who oversees monitoring, quality assurance, product health and safety, and other things like production quotas, and crop subsidies, etc. that "normal" agricultural products require? What about hemp as a commodity for other industries? What is hemp, and what is pot? Basically, the whole gamut of bureaucracy that now manages any other food commodity on the market will need to be revised.

Then there are the distributors: What are the requirements for licensing and reporting? How do you deal with interstate (and international) transport of a some times/some places illegal drug? What are all the various products that might need regulating (brownies, candies, pills, etc.). What tax schemes should be developed, and how should the the tax code be written to encourage or discourage growth of the industry? What restrictions do you place on marketing (or not)? Who manages and enforces all of this? (It makes my head ache just thinking about all the new forms that will need to be designed and printed).

Finally, there are the users: What's an acceptable inebriation level? Where do you go to buy your pot (state dispensaries, liquor stores, bars, the internet)? Will use be banned in certain places like public parks and other venues (as alcohol currently is)? What penalties need to be codified in law to address various use infractions?

Those are just some of the economic and institutional problems, I'm sure there are many more.

But there are societal issues as well, which may be even more complex: Should legal marijuana be part of a more comprehensive drug policy involving things like cocaine, psylocybin, ecstasy, etc. since nearly everyone agrees our so-called "war on drugs" has pretty much failed on all levels? Where alcohol has been responsible for many tragic deaths, broken relationships, lost dreams and more is marijuana a better drug for what ails the human condition? And, if so, are we ameliorating an existing problem or making it worse? Is it even possible to imagine all the issues that could arise if use of the substance explodes and becomes more mainstream?

Finally, there is Washington D.C. Given the issues both large and small that they've been unable to deal with do you think dropping an economic and societal bomb like legalized drug use in the middle of an entrenched bureaucracy and polarized Congress will ever go over very well? How do you think corporate institutions will respond either for or against legalized marijuana based upon their own vested interests?

All I can say is, I'm not holding my breath.

For a more detailed examination of these and other issues see: 'Marijuana Legalization: What Everyone Needs To Know'

Also, this excellent historical review by Lewis Lapham on our basic human need to seek out altered states: Raiding Consciousness. Why the War on Drugs Is a War on Human Nature ]

by markk
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