Harvard Professor Says Legalizing Drugs Worth $88 Billion Dollars for US Economy

Harvard Economics Professor Jeffrey Miron estimates in a report he wrote for the Cato Institute that legalizing all forms of recreational drugs would be worth roughly $88 billion dollars for the United States economy.

By legalizing drugs Miron believes that state and local governments would save some $25.7 billion dollars a year from no longer having to enforce the current drug laws. Savings would come from reduced law enforcement needs as well as reduced court and jail costs. The federal government would save another $15.6 billion from reduced costs for an overall savings of $41.3 billion dollars.

Professor Miron also estimates that legalizing recreational drugs and taxing them like alcohol and tobacco are taxed today would yield $46.7 billion dollars in total revenue for state governments and the federal government.

Combining the savings from no longer having to enforce the current drug laws with the tax revenue that would be gained by legalizing the drugs yields a total gain of $88 billion dollars for the United States economy.

At a time when all forms of government - state, local and federal are having budgetary problems the savings and tax revenue that could be gained from legalizing drugs could go a long way towards easing budget cuts and calls for higher taxes.

In November residents of California will vote on whether or not to legalize marijuana in the state. California has huge budget problems at just about every level of government today and it will be interesting to see if these budget problems and a possible monetary solution to part of the budget problems will be enacted by California residents by legalizing marijuana in the state.

If that happens Professor Miron believes it could be the start of a nationwide movement towards legalizing recreational drugs.

Sources:Just Say "Yes!" Legalizing Drugs is Good for Society . . . and the Economy, Harvard Prof. Says