The Case For Cannabis: Prohibition Funds Crime

Other articles here have mentioned that cannabis prohibition doesn’t mean the cannabis market goes away: it just means that it goes onto the black market. There are several deleterious aspects to this, each worthy of separate discussion. This article will look at the role cannabis prohibition plays in funding crime.

The logic is that, by prohibiting cannabis and by attacking cannabis users through the justice system, it becomes possible to prevent cannabis profits from steadily flowing into the hands of criminals, which would prevent them from being able to fund further enterprises. So criminal activity, and thereby the suffering of the citizenry, can be pre-empted by attacking cannabis users and growers.

As we saw with alcohol, the attempt to prohibit a substance just makes everything about it worse. Alcohol prohibition infamously led to the rise of an entire class of gangsters and bootleggers, the most well-known being Al Capone. Because the substance couldn’t be sold lawfully, it was sold on the black market, and the criminal enterprises who made the profits were happy to use that money to find other ventures.

In Capone’s time, much of that black market money was used to buy firearms, which were then used in the commission of robberies and contract killings. Alcohol prohibition ensured a constant flow of money into the coffers of criminal gangs, and this financed further ventures. Consequently, those criminal enterprises flourished.

We don’t have alcohol prohibition any more, but cannabis prohibition has done a fine job of filling that gap.

The New Zealand Drug Harm Index 2016 stated that “Over $70 million in funding for other criminal activities is provided each year from drug trafficking. The majority of this (nearly 90%) is generated from the sale of cannabinoids.” Another way to write this is to say: Cannabis prohibition puts $60 million into the pockets of criminal gangs in every single year, in New Zealand alone.

This money then finances all the murders, robberies and methamphetamine production that the rest of us have to suffer from. The Police are not wrong when they say that illegal cannabis sales fund further crime – they’re just wrong when they say that the solution is to crack down on it. It’s the cracking down on cannabis that makes it valuable, and this attracts the desperate, greedy and short-sighted.

If a criminal wants to fund the purchase of a large amount of precursors to methamphetamine, they might find themselves in need of a few thousand dollars. This is a similar amount of money to what they could make in one cannabis grow under a 600 watt light, after about three months of growing. Because anyone with a real criminal network knows someone with cannabis clones (or at least seeds), just about anyone inclined to set up a meth operation can also get a cannabis grow started.

Moreover, cannabis prohibition makes it possible to cut up a pound of cannabis into $50 bags and sell them piecemeal. They can do it themselves, or they can get gang underlings to do it – after all, $50 is within the reach of even high schoolers. This makes it possible for criminal enterprises to draw more and more people in.

Under a regime of legal cannabis, such things would not be possible, or would at least be strongly disincentivised. For one thing, cannabis prices are much lower in places where it is legal, and this removes most of the incentive to get involved in selling it. A second factor is that the vast majority of people prefer not to deal with criminals if they can get the same goods from a white market vendor.

So cannabis prohibition makes it possible for a variety of criminal enterprises to get funding, whereas they may not have been able to get off the ground without their backers’ ability to sell cannabis on the black market. A lot of this criminal activity only exists because the law makes it possible. Wherever you have an economic niche, white market or black, someone will step into it.

The common counter-argument that, if cannabis was made legal, gangs would just sell hard drugs, turns out to be the opposite of the truth. The scenario we’re given is that criminals will sell drugs anyway, so it’s better for them to sell cannabis to our children than methamphetamine. The assumption seems to be that criminals choose to sell cannabis in preference to methamphetamine etc. out of kindness.

Leaving aside all the other ways in which this argument is wrong, it takes a certain amount of start-up capital to be able to get in on the market for hard drugs, because it’s necessary to deal with major players. Cooking up a batch of meth takes start-up capital, and even buying precursors usually requires a five-figure sum of cash on account of that people dealing in such are disinclined to make petty deals. Cannabis law reform would make those five figures harder for criminals to come by.

Cannabis prohibition should be repealed so as to take a major source of funding away from criminal gangs. Without black market cannabis, a number of criminal enterprises and schemes would not be able to get off the ground, which would keep our communities safer than cannabis prohibition can.

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This article is an excerpt from The Case For Cannabis Law Reform, compiled by Vince McLeod and due for release by VJM Publishing in the summer of 2018/19.

The Case For Cannabis: There Is No Moral Argument Against Cannabis

Some cannabis prohibitionists contend that cannabis should remain illegal because its use is immoral. This immorality is such that it’s fair to use the criminal justice system to prevent it from happening. As this article will examine, not only is there no moral argument against cannabis, but the moral equation suggests that it should be legal.

The sort of person making this argument is usually some kind of wowser. This is the reason why this argument is becoming less common – proponents of it are dying off.

Usually, the argument takes some form of slippery slope argument. The usual patterns is that smoking cannabis is claimed to lead, by stepwise degeneracy, into the total abandonment of all healthy human values, until the user deteriorates into a wretched shell of the person they once were. Here the spectre of Reefer Madness can be seen once again.

The idea that cannabis use is inherently immoral harkens back to the religious fundamentalist idea that all pleasure is inherently sinful, on account of that it induces a person to worship the material world instead of God. It’s essentially a religious idea, and fundamentalist in the sense that the suffering caused by this admonition is ignored.

In reality, human beings have a need for recreational activity or they will become mentally ill. This is apparent from observing anywhere in history where those activities have been restricted. Pleasure is not inherently immoral, and it’s not immoral to enjoy one’s life, provided that one’s duties are still met and one’s responsibilities still discharged.

To the contrary – there is a moral imperative to enjoy one’s life, for if one does not do so, then bitterness, anger, frustration and depression are the consequences. These emotions invariably take themselves out on other people. Therefore, a person has a moral imperative to keep themselves happy enough that they can have a positive effect on other people. If using cannabis helps achieve this, so be it.

Morally speaking, the correct course of action to take at any given time is the one that minimises the suffering of conscious beings. It isn’t to blindly follow the law, and neither is it to blindly follow some crude ascetic concept of religious purity by banning and avoiding all recreational substances. If such a thing could be summarised, we might say that it’s closer to taking the correct decision in every situation, despite the pressures and temptations to take the wrong one.

Some might argue that people have more important things to do than to use cannabis. That’s all well and good, but it isn’t a sufficient argument to make cannabis illegal. It’s entirely possible that some people use cannabis when they could have been doing something more edifying or productive. This would still not constitute a moral demand to attack these people through the criminal justice system.

Others might argue that the moral imperative lies not with the prospective cannabis user, but with society, who ought to act to make cannabis less widely available. But this, too, is an example of putting abstract rules ahead of a sober calculation of which legal arrangement leads to the least suffering. Punishing cannabis suppliers and users cannot be the way forward.

It can hardly be argued that setting the Police and the criminal justice system onto someone for growing or using cannabis is the morally correct thing to do. The effect of being arrested and potentially dragged through court is more suffering than could ever possibly be prevented by breaking a cannabis habit. If moral considerations are important, then we need to look for a less brutal solution.

The most morally sophisticated way of dealing with cannabis is to make it legal, and to use some of the money freed up by this to fix any problem that might arise. It is estimated that legalising cannabis could save even a small country like New Zealand up to $500 million per year. This would provide ample funding to every drug counselling service in the whole country.

If this was coupled with a cultural change that saw cannabis dependency treated like dependency for legal drugs, instead of a moral failure for which one must be punished, it might be possible to encourage people who were dependent to get help instead of intending to force them away from cannabis by using the Police and prisons. If there is a moral argument around cannabis, that is surely the solution.

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This article is an excerpt from The Case For Cannabis Law Reform, compiled by Vince McLeod and due for release by VJM Publishing in the summer of 2018/19.

The Case For Cannabis: The Market Needs to Be Regulated

One of the strongest arguments for cannabis law reform is the appeal to regulate the market. The idea that a government can make cannabis illegal and then it just “goes away” is childish, and the historical example has borne this out. As this article will examine, legal cannabis is the only realistic way to regulate the market.

Many people envision that the world before cannabis prohibition was one of chaos. Shady dealers set up outside high schools to sell to pupils, pharmacists pushed untested and unresearched cannabis products on a naive public and criminal enterprises got fat with the income from cannabis bootlegging. The reality is closer to the reverse of this.

When a substance such as cannabis becomes illegal by act of law, what that means in practice is that the manufacture and supply of that good becomes completely unregulated. Making something illegal is not a way of regulating it – it’s a way of putting it into the “too hard” basket. It shifts control from the regulators to the black market.

The black market doesn’t attract nice people. It generally attracts people with no better options – desperados. Because there is currently no opportunity to legally profit from cannabis in New Zealand, the only people who deal with the subject matter are black marketeers. There is no guarantee that such individuals will adhere to what has been established overseas as professional industry standards for manufacture and supply of cannabis products.

Regarding the manufacture of goods on the black market, it’s apparent that there are little in the way of health and safety considerations. This is a relatively minor concern in the case of cannabis, but it’s still possible that any bud manufactured by a criminal enterprise has used unwanted chemicals in the growing process. They might have used chemical fertilisers that leave side-products that people don’t want in their bodies, or treated the bud with something to make it appear danker.

When it comes to supply, the situation is even worse. A normal business primarily competes with others through advertising, whether word-of-mouth or commercial. They don’t compete through intimidation. The manager of the local Countdown would never send an underling to take out Fresh Choice workers for selling on the wrong turf. Black marketeers selling illicit drugs happily take their competitors out such ways though.

The vast majority of the criminal activity associated with cannabis comes about because of prohibition. It’s isn’t natural to cannabis. With no regulatory oversight, there’s nothing stopping the black market selling to 13-year olds or wiping their competitors out in turf wars. Cannabis is already illegal, so it’s not like the victims could go to the Police. Black market actors have free rein until they are arrested.

Practically speaking, there is going to be a cannabis market whether we like it or not, so we might as well make sure that it’s on the level.

Regulation would solve the problem of tainted product, because growers will need to be able to account for their grow methodology and process. End consumers will be prevented from becoming ill because the possibility of dangerous chemicals being used at some point in the process will be minimised. If anyone does become sick, responsibility can be placed on the correct party and appropriate measures taken.

Moreover, a regulated cannabis supplier or dealer is much more likely to comply with public requests for decency than the black market is. Regulation will inevitably mean that cannabis dealers will need to become licensed, which means that they are strongly incentivised to adhere to laws regarding not supplying to minors, not supplying to intoxicated people etc. They also can’t shoot their competitors and expect that this will lead to a greater market share.

A final benefit is that regulation will mean that cannabis suppliers cannot deal with other products as well. As mentioned elsewhere, the gateway drug effect can only occur when people seeking cannabis are exposed to hard drugs. A professional cannabis retailer will not have an incentive to offer their customers methamphetamine, unlike a gang member. In practice, they are unlikely to even be allowed to sell alcohol or tobacco.

All this means that regulation will have the effect of almost taking cannabis away from the black market entirely. Those who are allowed to compete on the legal market for cannabis will have to meet quality standards that ensure that safety of the users (to such a degree that this is possible when people take psychoactive drugs). This will have the overall effect of reducing harm.

Cannabis should be legal because regulation of cannabis causes less suffering than criminalising it. We need to abandon the childish idea that making something illegal makes it go away, and employ a sophisticated and intelligent approach to dealing with the issues caused by cannabis. The only realistic way to do this is through regulation.

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This article is an excerpt from The Case For Cannabis Law Reform, compiled by Vince McLeod and due for release by VJM Publishing in the summer of 2018/19.

The Case For Cannabis: It Doesn’t Matter That People Have to Pay For Cannabis Users’ Healthcare

One argument that is often made by people in response to proposals for cannabis law reform is that they don’t want to pay for cannabis users’ healthcare. The logic goes that cannabis law reform is unfair on the general populace, because they have to fork out for the inevitable increased healthcare burden through general taxation. As this article will examine, such an attitude is mistaken.

Like many of the false arguments against cannabis law reform, this one relies on another bogeyman. In this case, it’s the supposedly heavy burden that the health system would suffer under if cannabis were to be made legal. This burden would have to be borne by everyone, and it isn’t fair to expect them to do so.

As with many examples of false logic, this argument depends on seeing the situation incorrectly.

For one thing, it’s possible that, if cannabis were to become legal, some of the adverse consequences of its use would become more widespread. But it’s foolish to think that, in such a case, cannabis use would go up while the rates of all other recreational drugs would stay the same.

In reality, recreational cannabis is a competing good to alcohol. A lot of people use it because they find the ritual of rolling up and smoking a joint as relaxing and enjoyable as drinking a beer, and at least as social. Everywhere that cannabis is legal, at least some of the population have decided that they prefer to socialise over some weed than over some booze.

So the supposed “extra” healthcare burden that would be caused by increased cannabis use is balanced, perhaps even several times over, by the savings that accrue from health problems that were prevented by the reduced use of other recreational drugs.

Alcohol abuse is believed to cost the country $4.9 billion per year. The total cost of cannabis use on our health system right now is, even if one uses the ultra-conservative Drug Harm Index, $431 million. This latter figure is not merely the cost of cannabis use to the healthcare system but also ancillary costs, so the true figure is much lower (this latter figure also includes $126 million of costs due to premature death caused by cannabis use and is therefore somewhat fantastical).

So even if legal cannabis doubled the total harm that the Drug Harm Index says that cannabis does to society, this would be more than compensated for if it reduced the total harm done by alcohol by 10% or more.

A second factor to consider is that the cost of cannabis damage is small compared to the cost of old people just clinging onto life for a few more years.

New Zealand’s total healthcare expenditure was $16.8 billion last year, and people aged over 65 used over 42% of that – and that percentage is increasing. So people over 65 use roughly $8 billion dollars’ worth of taxpayers’ money on health costs every year, much of which is wasted on futile attempts to delay a terminal illness.

Even if we ignore that cannabis use is not higher in jurisdictions where it is legal, and even if we ignore that legal cannabis would mean users could use much less harmful routes of administration, and even if we assume that the total healthcare damage would be double under legalisation than what it is now, it still wouldn’t be a great amount of money compared to what is already spent.

The third argument is, of course, that it simply doesn’t matter if cannabis users’ healthcare has to be paid for out of general taxation. As mentioned above, alcohol abuse costs the country almost five billion dollars a year, which amounts to close to $1,600 per taxpayer. If such a high bar is acceptable for alcohol, then its acceptable for cannabis as well.

Cannabis users are, or should be, part of our society the same way as anyone else is. So in the same way that we’re happy to pay for the healthcare costs of cigarette smokers, alcohol drinkers, Olanzapine takers (the side-effects of many psychiatric medicines are bad for the physical health), rugby players, horse riders and mountain climbers, so too should we be happy to pay for the healthcare costs of cannabis users.

Legal cannabis would make it easier to minimise healthcare costs anyway, because doctors would be able to encourage cannabis users to avoid joints and dabs in favour of edibles and vapourisers. So if healthcare costs really are a concern, legal cannabis is better for more than one reason.

In summary, it’s not fair to object to cannabis law reform on the basis that the general taxpayer would have to pay for a sudden massive healthcare burden. A repeal of cannabis prohibition would not lead to such a burden – in fact, a sober look at the experience suggests the overall healthcare cost of recreational drug use would fall if cannabis became legal.

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This article is an excerpt from The Case For Cannabis Law Reform, compiled by Vince McLeod and due for release by VJM Publishing in the summer of 2018/19.