The ad below debuted in Times Square, New York City, March 2010:
In Times Square no less! And earlier this month, a major television network debuted a 1-hour special on the Marijuana Industry in the United States. This macro level view is causing a lot of micro level conversations between regular people in their homes, at their colleges and on their jobs. For decades, the use of this Level 1 drug has been banned in one of the world's most economically progressive countries, while in others, it is accepted and profitable for both the state and the people. The occurrence of the television special itself - much less the content - is evident of changing normative opinions here on the home front.
A bit of history for the buffs: Marijuana is a close relative to industrial hemp; both strains are of the Cannabis genus which is believed to have originated in central Asia. For millenia, mankind has harvested this plant for medicinal, recreational, practical, and ritualistic use. Tribesmen in Africa employ herb to commemorate life's seminal events. Inhalation and ingestion results in a more holistic and vivid appreciation of the natural world and a change in one's level of consciousness. Yet no one person has ever overdosed or died from its use**. Past Presidents George Washington and Thomas Jefferson cultivated and profited from hemp during the dawn of our great country's birth. While marijuana for recreational use is regulated but permissible in countries such as Holland, Portugal and Spain, it was first decriminalized by Oregon (for non-medicinal use) in 1973, right here in the good ol' U. S. of A.!
The 1937 Marihuana Act imposed a nominal $1 tax on all shipments of the plant and a lot of bearucratic red tape on all market participants*. This era also witnessed the effect of the media on societal attitudes. Mogul William Randolph Hearst used his holdings in the publishing industry to further his personal opposition to the "Killer Drug," alongside Federal Bureau of Narcotics agent Harry Anslinger. The movie poster above is from the 1936 film of the same name. From 1937 until 1970, marijuana was technically legal, (though taxed) but America outlawed the "burning weed" at last, forty years ago. Data from the shadow economy reveals that consumption of the distinct leaf has proliferated during this time, to no wonder. Prohibition has a funny way of increasing the propensity to acquire the banned good.
The MSNBC documentary follows restaurateurs and chefs who specialize in edible pot recipes; a necessity for those who seek the herb's medicinal properties but can't or won't inhale. The myriad practical uses for the ubiquitous plant has placed it squarely on the radar of economists worldwide.
We first encountered Harvard economist Jeffery Miron on this blog last year. Since then, Dr. Miron has become a foremost voice on the practical, economic benefits of legalization. He often looks to the success of regulation in other nation's as well as the tumultuous history here that led to it's current banishment. He rationalizes - using economic theory and quantitative forecasting - that the savings the nation would retain from reducing law enforcement come out to about $7.7 billion annually. Similarly, he adds that proper taxation would add amounts of up to $6.2 billion to the budget coffers. You can read more on Miron's research here.
ECONtreprenuers nationwide have been and continue to capitalize off of cannabis. Much like the Gold Rush of the 1840s or the Internet Boom of the 1990s, independent dealers and businesspeople are making a dash to claim their stake in this wildfire (pun intended) market. While official sources of the size, composition and smoking habits of the American consumer base are scarce, a noteworthy reference is PriceofWeed.com. Let us step back and stress that The Delasol Group does not endorse the manufacture or sell of illegal drugs. But we do admire efficient economic ideals, and this website is just that.
Anonymous users can submit their location and the most recent price paid/weight received for (presumably) recreational quantities of the drug. An accompanying blog goes into some detail on the statistical adjustments to the data to cull out pranksters and others who would put in false values. Nonetheless, it gives the casual browser (another pun!) a chance to compare costs from city to city across the U.S.
We here at delasol would be interested in more social metrics from the hardworking people at priceofweed.com. What about a (anon.) user survey on usage, experiences (positive/negative), budget, networking, customer service and general etiquette on navigating the perilous corners of the shadow economy?? We specialize in survey design and implementation, as well as market research, so an economic partnership may be in the makings!
cheers,
delasol
* Obtained from this site.
**courtesy of the Centers for Disease Control This is a .pdf and the CDC data is on the last page.
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