Oregon just celebrated the third anniversary of cannabis legalization, and I think itโs safe to say itโs been a success. While itโs had a negative impact on the Oregon Medical Marijuana Program, and our stateโs nearly 30,000 licensed growers are currently struggling with a saturated market and depressed prices for their productโnot to mention our lack of social consumption spaces and events, which still boggles my mindโthe many benefits of our legal cannabis market still outweigh the negatives.
Connecticut, Michigan, and Ohio are expected to vote on similar legalization programs in November. Meanwhile, conversations about national legalization continue to get louder, and predictions for industry values continues to skyrocket. A recent report by BDS Analytics predicts a US cannabis market value of $23.4 billion by 2022, and a 22.3 percent annual compound growth rate.
In fact, itโs going so well, some people are even asking whether we should legalize, regulate, and tax all drugs. (โHell yeah, letโs do it! Letโs totally do it now, bro!โ hoarsely shouted the worst guy you went to college with.) Mexicoโs newly elected president even said he will give carte blanche to his future interior minister to explore legalization of all drugs to curtail Mexicoโs cartel-related violence, which has resulted in more than 200,000 murders since 2006.
A recent paper by a Harvard-based researcher and published by the Cato Institute gives insight to the financial picture: Legalizing all drugs would generate more than $100 billion in savings and taxes annually, benefitting federal, state, and local governments.
The author, Jeffrey Miron, published a prior paper in 2010 forecasting cannabis revenue if legalized, and recently said his predictions were vastly exceeded in Colorado, Oregon, and Washington. He told Marijuana Moment: โThis report estimates that $47.9 billion is spent annually on drug prohibition enforcement, whereas $58.8 billion could potentially be raised in tax revenue.โ
Miron breaks down, state by state, the federal, state, and local expenditures attributable to drug prohibition in 2016 by category: โmarijuana,โ โcocaine/heroin,โ โsynthetic,โ and โother,โ which I assume to mean mushrooms, peyote, and other plant-based hallucinogens.
In 2016, $375 million was spent in Oregon on the prohibition of all drugs: $57 million for cannabis, $177 million for cocaine/heroin, and $140 million on other drugs. Miron estimates that legalization and state taxation would result in nearly $246 million for Oregon, with $50 million from cannabis, $108 million from cocaine, $63 million from heroin, and $23 million from other drugs. If you add that figure to the money weโd be saving on prohibition, it adds up to nearly $625 million in increased revenue for Oregon.
But what about the social benefits? The current system for drug prohibition and enforcement is a massive, decades-long failure, with blatantly racist punishment for people of color. Treatment services are grossly underfunded, and drug-based criminal convictions severely limit people trying to reintegrate into the work force after incarceration.
Itโs true that the system is broken. Criminalizing drug useโthe way weโre doing itโisnโt working, and there are public health benefits to having legal access to drugs that have undergone rigorous screenings for purity and safety. Yet selling drugs with no discernable benefits, and high risks such as death, is a flawed solution.
Cocaine and heroin arenโt difficult to find in most US cities. But to purchase personal amounts of those drugs at a cannabis dispensary isnโt acceptable for most people I know. They view cannabis as having tremendous healing propertiesโmany of which weโre only just beginning to learn aboutโwhile having few detrimental effects as a relaxant compared to prescription pills or alcohol.
Some of these same people enjoy psychedelic mushrooms, and would be down to micro (or macro) dose if they had access to peyoteโwith the belief that these plants have beneficial uses for physiological conditions such as depression, PTSD, and others.
But I donโt hear anyone singing the praises of the healing properties of a bump of coke or a syringe of heroin. When used in controlled medical settings, both have remarkable pain-killing properties. When consumed recreationally, often the intent is to kill a different type of pain. (Barring Nazi pilots, meth has never done anyone who used it any favors.)
So, instead of thinking about profit, perhaps we should start listening to drug users about the pain theyโre working to numb, and begin putting sufficient resources into offering comprehensive treatments and alternatives.

Portugal decriminalized all drugs In 2001 and they have the lowest rate of drug-related deaths in Europe and way lower than here. HIV deaths from injection of drugs has also dropped significantly. All the alcoholics writing our drug laws need to realize that our war on drugs is a waste of money, time and lives.
A relatively early report on Portugal’s drug policy & its success can be found at Portugal’s Drug Decriminalization: Lessons for Creating Fair and Successful Drug Policies
http://www.cato.org/publications/white-paper/drug-decriminalization-portugal-lessons-creating-fair-successful-drug-policies
By Glenn Greenwald
April 2, 2009