Blunt Realities of Weed Economics: The National Patchwork of Legalization
By Daniel A. Sumner | Robin S. Goldstein
Under US federal law, weed, also known as “marijuana” or “cannabis,” remains a Schedule I illegal narcotic, in the same category as cocaine and heroin. Production and sale of weed are federal felonies punishable by severe prison terms.
Individual US states, in conflict with federal law, began legalizing medical weed in 1996. However, in the past decade, the US Department of Justice has agreed not to enforce federal criminal weed laws against anyone who is following state laws.
As of 2022, 33 percent of all Americans live in states with legal recreational sales of weed, 41 percent live in states with medical legalization but no legal recreational sale, and 26 percent live in states with total weed prohibitions.
In its early years, legally produced and sold weed has struggled to capture market share. In most places where the sale and use of weed are now legal, illegal weed—unlicensed, unregulated, and untaxed—still has a dominant market share and shows no signs of fading away.
Washington, DC: American Enterprise Institute, 2022. 7p.