Quotulatiousness

July 11, 2014

The lawless hellhole that is post-legalization Colorado

Filed under: Business, Law, Liberty, USA — Tags: , , , — Nicholas @ 07:24

Just as sensible people were predicting, the once peaceful and scenic state of Colorado is now a smoking hole in the ground, infested with twitchy-eyed, machete-wielding savages. (Oh, wait, no … that’s Edmonton):

[Colorado Governor John] Hickenlooper sounds cautiously optimistic, and there are good reasons for that. Possession and consumption of cannabis have been legal in Colorado and Washington since the end of 2012. In Colorado, so has home cultivation of up to six plants and noncommercial transfers of up to an ounce at a time. Since the beginning of this year, anyone 21 or older has been able to walk into a store in Colorado and walk out with a bag of buds, a vape pen loaded with cannabis oil, or a marijuana-infused snack. And for years in Washington as well as Colorado, such products have been readily available to anyone with a doctor’s recommendation, which critics say is so easy to get that the system amounts to legalization in disguise. Despite all this pot tolerance, the sky has not fallen.

A study released yesterday by Colorado’s Marijuana Enforcement Division supports Hickenlooper’s impression that legalization has not had much of an effect on the prevalence of cannabis consumption. The authors, Miles Light and three other analysts at the Marijuana Policy Group, note that the percentages of Coloradans reporting past-month and past-year consumption of marijuana in the National Survey on Drug Use and Health (NSDUH) rose between 2002 and 2010, mirroring a national trend. But consumption fell a bit in Colorado after 2010 while continuing to rise in the rest of the country. That is striking because Colorado’s medical marijuana industry began to take off in the second half of 2009 after the legal standing of dispensaries became more secure.

Another surprising finding is that marijuana use during this period was less common in Colorado than in the country as a whole. Based on NSDUH data from 2010 and 2011, 12 percent of Coloradans 21 or older were past-year users, compared to a national figure of 16 percent. But among those past-year users, daily use was more common in Colorado: 23 percent of them reported consuming marijuana 26 to 31 times a month, compared to a national rate of 17 percent. It’s not clear to what extent Colorado’s medical marijuana system is responsible for this difference in patterns of use.

[…]

Hickenlooper did not mention crime rates, but some opponents of legalization warned that cash-heavy cannabusinesses would invite robberies, leading to an increase in violence. Instead the frequency of burglaries and robberies at dispensaries has declined since they began serving recreational consumers in January. FBI data indicate that the overall crime rate in Denver, the center of Colorado’s marijuana industry, was 10 percent lower in the first five months of this year than in the same period of 2013.

Although the prospect of more money for the government to spend has always struck me as a pretty weak argument for legalization, Hickenlooper is happy to have tax revenue from the newly legal marijuana industry. So far there has not been much: just $15.3 million from the recreational sector in the first five months of 2014 ($23.6 million if you include medical sales), although monthly revenue rose steadily during that period. The economic activity associated with the new industry, including not just marijuana sales but various ancillary goods and services, is bound to be much more significant than the tax revenue. And although Hickenlooper says he does not want Colorado to be known for its cannabis, legalization (along with abundant snow) may have something to do with the record numbers of tourists the state is seeing. It seems clear, in any case, that legalization has not hurt Colorado’s economy, which Hickenlooper accurately describes as “thriving.”

Another benefit of legalization that can be measured in money is law enforcement savings, which various sources put somewhere between $12 million and $60 million a year in Colorado. Those estimates do not include the human costs associated with treating people like criminals for growing, selling, and consuming an arbitrarily proscribed plant. Prior to legalization police in Colorado were arresting 10,000 pot smokers a year. Today those criminals are customers of legitimate businesses, which are replacing the “corrupt system of gangsters” decried by Hickenlooper.

2 Comments

  1. Can’t wait until they tax it like tobacco, into the ground. People will still pay through the nose though. And then there will be an underground demand for cheaper pot. Ah, capitalism ruined by taxation!

    Oh, I forgot, they need to treat them like smokers too, right? Ostracized and belittled for their habit? Nah, I bet they just roll with it as all the cool kids are doing it.

    Comment by Dwayne — July 11, 2014 @ 10:32

  2. Someone posted on that issue earlier this week (but I don’t remember where I saw it). It’s not a problem for Coloradans (Colorado-ians?), but out-of-state visitors are having problems: not in buying marijuana products, but in finding places to legally consume them.

    Comment by Nicholas — July 11, 2014 @ 10:37

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