By Daniel A. Sumner | Robin S. Goldstein

Key Points

• Cannabis containing more than 0.3 percent tetrahydrocannabinol (THC), which the US government still calls “marijuana” but here we call “weed,” has been legalized by many state governments but is still illegal at the federal level.

• If a major goal of federal legalization is to help legal weed replace illegal weed, the best step forward for federal policy is simply to step out of the way. This would involve removing weed from the schedule of illegal narcotics, permitting states to implement cannabis policy as they see fit, and allowing cannabis to move among jurisdictions where it is legal.

• Forms of federal legalization that include more regulations and taxes on cannabis—including House and Senate bills that have been recently publicized—would almost surely do more harm than good, given the state and local policies already in place.

Washington, DC: American Enterprise Institute, 2022. 5p.

By Howard Husock

• The legalization of cannabis, rather than sidelining the black market, has fueled it, providing cover to illicit cannabis enterprises that often undercut the legal market on price and accessibility.

• State policies, such as high or complex cannabis taxes, scant issuance of licenses for legal operation, and widespread local “opt-outs,” play a key role in keeping the legal market from outcompeting illegal alternatives.

• The treatment of alcohol and cigarettes may be better models: States should allow legal retail to proliferate to minimize the advantages illicit operators now enjoy.

• At the same time, as with tobacco, public health authorities should mount education campaigns to minimize marijuana use, in light of its demonstrated dangers.

Washington, DC: American Enterprise Institute, 2024. 1113p.