The Economics of Marijuana Legalization in Canada

Hello again. I was given an assignment by my professor a few weeks ago to write a research essay on a topic of our choosing. Well, keeping with the theme of trying to change things causing ills to society, I chose to write it on a topic that is well-known to many on our UBC campus: marijuana, and specifically, the legalization of the substance. I researched my ass off because I knew, more than just getting a great mark, my number one motive was to write something that could have an impact on people’s perspectives and to accomplish that I knew I had to bring my A-game. Whether or not my A-game was brought is of course, up to the reader to decide. Without further ado, here is the essay in it’s entirety. (The conclusion was changed for the actual essay I handed in.)

The Canadian Case For Legalizing Cannabis

Although it is a policy that affects nearly every citizen in Canada, the debate over Canadian marijuana legalization is seldom spoken about in everyday conversation. Many citizens of Canada assume that prohibiting cannabis has been successful and beneficial for Canadians, although deeper analysis of the issue suggests otherwise. The prohibition of marijuana has been in effect since 1923, despite a 2003 report committed by the Senate of Canada which recommended the government legalize cannabis and have it taxed and regulated. Canadian Senator Pierre Nolin describes prohibition as a “patent failure” which is not only economically taxing but has extremely detrimental social costs (Nolin xv). These costs are what led Senator Nolin and the Senate in 2003 to suggest Parliament abolish the old system of criminalizing cannabis and instead recommended a responsible legalization of the plant. They recognized that if cannabis is taxed and regulated it can not only save us valuable law enforcement resources, but its sale can bring in funds for the government and the citizens of Canada. The money wasted on keeping cannabis outlawed can be applied more effectively in preventative and treatment efforts such as identifying and treating at-risk users, allowing young people greater access to genuine health information and allowing research which can lead to better understanding of the drug’s effects. Based on all this criteria, I will argue that legalization and regulation is the only viable solution to the glaring shortcomings of the failed marijuana prohibition in Canada.

Cannabis and marijuana are two interchangeable words that refer to the flowering buds of either the Cannabis Sativa or Cannabis Indica plant (Blackmore 332). Scientific findings attribute the first use of cannabis to China where the plant stalk was used for clothing and ropes over 10,000 years ago (Nolin, Kenny, Colin 56). Marijuana today is the most commonly consumed illicit drug in Canada and the world. A committee of the Canadian Senate reported on the prevalence of marijuana in Canadian society, estimating in 2003 that 100,000 Canadians over the age of 18 and 225,000 Canadians between 12 and 17 use cannabis on a daily basis (Nolin et al. 81). Marijuana remained legal to use for 12,000 years until the beginning of the 20th century when a “moral panic” perpetuated by the media helped contribute to the 1920 passing of the Opium and Narcotics Act (Nolin et al. 99, 49) Marijuana was added to this act abruptly and without question in 1923 and has remained illegal ever since. Laws prohibiting marijuana remain in Canada despite polls suggesting that two thirds of Canadians would like to see marijuana at least decriminalized (Nolin et al. 102). The drug today, however, is considered illegal due to an act passed in 1996 called the Controlled Drugs and Substances Act.

The Controlled Drugs and Substances Act was created by the Canadian government in 1996 and has received criticism for lacking a clear, rational purpose and failing to put any significant emphasis on either prevention or harm reduction strategies (Nolin et al. 7). In this act the federal government claims to spend nearly $450 million dollars yearly in their Canadian Anti-Drug Strategy to pay for harm-reduction and education strategies, although it was revealed in 2001 that 95% of that money is spent upholding the criminal law. (Nolin xv) This is despite the fact that it has been found that increasing the presence of law enforcement has negligible effects on stopping the drug trade while possibly increasing the rate of violence in the area (Rasmussen 106). Still, the Canadian Senate in 2003 estimated nearly $1 billion dollars was spent every year on drug enforcement (Nolin et al. 129).

The way the government fights the illegal flow of cannabis is by two means, disrupting the supply of cannabis by targeting the growers and dealers, and by reducing the demand by targeting consumers who want to purchase marijuana (Lynch 6). Disrupting the supply is done by increasing the penalties for those who grow and traffic marijuana. This is achieved by increasing jail time and other penalties for those who are caught possessing a large weight of marijuana. Ironically, basing the severity of penalties on weight has been the motivation for growers increasing the potency of marijuana (Lynch 83). It also raises the demand of the consumers for high potency marijuana, which combines for the reason there has been up to a 40 times increase in potency since 1974 (Lynch 84) This effect was also found in the United States’ prohibition of alcohol where low-potency beer was replaced with high alcoholic spirits (Rasmussen 87). In economic terms, the substitution effect is a phenomenon where consumers replace a product that has low availability for a product to a product that is more easily attainable. Studies observe this effect in marijuana where less availability induces substitutions of cannabis for much more lethal drugs including alcohol, cocaine and crystal methamphetamine (Rasmussen 74). Reducing demand is done by increasing the penalties and the likelihood of being arrested for possession of marijuana. This tactic can be seen in the number of arrests that are made for simple possession, which has been estimated at a staggering 21,000 people a year (Nolin et al. 131). This extremely high number raises doubt about the actual legitimacy of the whole prohibition, considering these individuals are nonviolent users who may live the rest of their life with a criminal record for using a virtually harmless substance. These examples illustrate how the effect of trying to prohibit marijuana often has unforeseen consequences that are graver than the actual use of the drug itself, which is an idea that was put forth by the Senate of Canada (Nolin et al. 194).

Even with the various efforts by law enforcement, the attempts are meagre when it comes to stopping the illegal cannabis market. It has been found globally that drug use is influenced less by enforcement policies and more by social and cultural factors, which is why it is thought that the “Pacific Coast Mentality” contributes to the entrenchment of marijuana in Vancouver’s culture (Nolin et al. 23). A Swedish study, when comparing major nations’ drug use rate and the amount spent on enforcing prohibitionist laws, found that drug policy laws and law enforcement made no significant impact on drug usage (Nolin et al. 171). This is reflected in the United States, where the country’s highly restrictive policies and billions of dollars spent on enforcing drug prohibition exist alongside the highest rates of marijuana use in the world (Nolin et al. 171). Canada is also one of the world’s highest ranked in terms of cannabis consumption (Nolin et al. 171), and use is steadily increasing (Nolin et al. 59). It is hard to imagine that cannabis prohibition is working effectively when 2.5 million Canadians actually use cannabis yearly (Nolin et al.186). Indeed, it would seem cannabis use is not leaving Canada anytime soon, regardless of any amount of money spent trying to prohibit it.

Each of the 21,000 times a year someone is charged for marijuana possession, valuable time is spent by law enforcement officers during the actual arrest, again while processing the charge and again during trial if a plea bargain is not struck. If it is accurately estimated that 30% of our justice system is spent dealing with cannabis cases (Nolin et al. 157), lowering the amount of arrests for marijuana possessions would take an enormous strain off of our courts and law enforcement officers. Enforcing the laws prohibiting marijuana cost an estimated $300 million dollars a year (Nolin et al.157). This, ultimately, is tax payers’ dollars which represents a policy which is no longer backed by the public’s wishes. A more appropriate use of this money would be funding efforts that work to minimize harm caused by marijuana use in society. Harm reductions techniques usually fall under two categories, prevention and treatment. Prevention efforts are programs that try to educate at-risk users of the potential dangers of marijuana abuse. Treatment methods are necessary for the rare occasion that someone develops dependency.. Investing in these options was highly recommended in the Senate’s 2003 appraisal of the drug war in Canada, yet very little action has been taken by the federal government in this respect.

Even without much attention being put towards prevention and treatment in Canada, the harm of illegal drugs and specifically cannabis are still dwarfed by the social ills caused by alcohol and tobacco. The cost associated with substance abuse of all illegal drugs, which include things such as health care costs and law enforcement, was pegged at $1.4 billion dollars based on a 1992 study. Ironically, the researchers found the second biggest cost of illegal drugs was in upholding the laws, which the study accounts for $400 million of the $1.4 billion figure. Comparatively, the costs incurred on Canadian citizens due to abuse of alcohol and tobacco products were $7.5 billion and $9.6 billion respectively (Nolin et al. 155). This is due largely to the fact health care costs are virtually zero in the case of marijuana, as oppose to alcohol and tobacco in whicH health care costs account for the majority of their combined $17.1 billion dollar debt to society . Though psychologal (as opposed to physical) addiction can occur in users of marijuana, studies have found smoking marijuana to be less addicting than nicotine, alcohol and even caffeine. There has not been a single documented death on Earth attributed to marijuana in its thousands of years of use (Arthur 12) and in 2003 it was concluded by the Senate of Canada that “cannabis poses very little danger to the user and to society as a whole” (Nolin et al. 192).

Most Canadians actually are against the cannabis drug laws, with 66% of Canadians wanting at least decriminalization and 47% wishing for tax and regulation based on polls collected in 2003. The percent of citizens supporting legalization had risen from only 31% in 1991; a 16% increase over 12 years (Nolin et al. 102). It has been found that British Columbians are particularly in favour of legalization and when polled believed that legalization would increase access to marijuana health information, increase effectiveness of law enforcement and reduce organized crime (Nolin et al. 104). Emphasizing policies that integrate drugs into social life and educating people about drugs is a perceived as a more effective public health policy than relying on the criminal justice system to deal with the problems of drug use (Vallance 25). Indeed, it brings into question the liberty of Canadians each time a non-violent citizen receives a life-altering criminal record for possession of marijuana, for which 21000 arrests are made yearly. This was the precise argument used in 2001 when an Ontario Court ruled that marijuana prohibition violated section 7 of the Canadian Charter of Rights and Freedoms. In July of that year the government, to appease the court finding, began regulating the use of cannabis for medicinal purposes only (Nolin et al. 24).

This proliferate use of cannabis in Canada is an extreme problem when viewed with the philosophy of prohibition, but it also harbours magnificent potential if the plant were to be legalized. Canada’s cannabis market is already prolific, with an estimated 2.5% of the world’s marijuana being grown within Canadian borders with only 4 hundreths a percent of the world’s population. The RCMP has estimated that 800 tonnes (1.6 million pounds) of marijuana are being produced in Canada each year with 500 tonnes coming from British Columbia (Nolin et al. 35). Cannabis production is a significant part of British Columbia’s economy, where with a market value of 6 billion dollars it is considered one of the province’s largest industries (Nolin et al. 37). Again we must be reminded that because of current prohibitionist laws this gigantic sum of money is funnelled directly to fund gang organizations who risk prison sentences and violent deaths in pursuit of immense profit.

Faced with the facts we are forced to realize that marijuana prohibition is flawed as a philosophy, has failed as a policy and will continue to indebt the Canadian people until political change sees it abandoned. Canada has much to gain by taking a responsible approach to cannabis use, an approach that emphasizes health and safety and discards the outdated thinking of targeting its own citizens with jail-times and criminal records. As a proud Canadian who believes in the rationality of his fellow citizens and my his country’s reputation as a leader in global initiatives , I naturally believe that if more information and genuine facts were portrayed to the public, then the already majority population of Canadians who would like to see change to the laws would only increase. Thus, it is our imperative duty as patriotic Canadians to realize our potential in changing the marijuana landscape, not only on a national but a global level. To not be afraid of open discussion and debate is the responsibility of a new generation of Canadians, ones who openly admit to smoking marijuana and stand steadfast in defense of their personal rights. I thereby personally challenge every Canadian to develop their stance on marijuana’s place in society through open-minded research and discussion. And if you come to the conclusion that I have, and you see can more readily see the strain that our laws put on our society, then I call on you as a patriotic citizen to voice your opinion and not sit idly by and let others make your choices for you. Afterall, democracy is based on the wishes of its people.

Thank you for your time
Anthony Mayfield, UBC

AFTERWORD:
While I was writing this, I attended the CAP conference put on by the students and professors at UBC. I was pleasantly surprised to see that there were not one, but two projects on the issue of marijuana use in Canada. One focusing on the current drug laws, and another focusing directly on policy reform. Based on those projects, and the sentiments I hear of all people who would like to see it legalized–those who use the plant and those who do not–I genuinely think that our generation, with our savvy for tracking down factual information, will be the ones who bring a change to the counter-productive drug laws in society.

Take care, fellow citizens
Anthony Mayfield

UPDATE: AN INTERESTING aside, Canadian Courts have deemed pot laws unconstitutional.. in 90 days there will be complete legalization of Cannabis. Of course, laws will probably be made before then in light of the new court finding, but it’s definitely a triumph.
Pot Laws Ruled Unconstitutional
UPDATE 2: Just got it back today, received an ‘A’ grade, a testament to the hours and hours I threw at this assignment to make it something pot-smokers could be proud of.

Works Cited
Benavie, Arthur. Drugs: America’s Holy War. New York: Routledge, 2009. Print.
Kenny, Colin, and Pierre Claude Nolin. Cannabis: Report of the Senate Special Committee on Illegal Drugs. Toronto: University of Toronto, 2003. Print.
Lynch, Timothy. After Prohibition: an Adult Approach to Drug Policies in the 21st Century. Washington (D.C.): CATO Institute, 2000. Print.
Rasmussen, David W., and Bruce L. Benson. The Economic Anatomy of a Drug War: Criminal Justice in the Commons. Lanham, Md..: Rowman and Littlefield, 1994. Print.
Vallance, Theodore R. Prohibition’s Second Failure: the Quest for a Rational and Humane Drug Policy. Westport, Conn.: Praeger, 1993. Print.
Erickson, Patricia Gordon. Cannabis Criminals: the Social Effects of Punishment on Drug Users. Toronto: Addiction Research Foundation, 1980. Print.
Hendin, Herbert. Living High: Daily Marijuana Use among Adults. New York, NY: Human Sciences, 1987. Print.
Blackmore, Susan J. Consciousness an Introduction. London: Hodder & Stoughton, 2004. Print.