Milton Friedman Urges Regulation

Boston University economist Jeffrey Miron has a new report on "The Budgetary Implications of Marijuana Prohibition" in which he estimates that "regulating marijuana would save $7.7 billion per year in government expenditure on enforcement of prohibition" and that "regulating marijuana would yield tax revenue of $2.4 billion annually if marijuana were taxed like other goods–and $6.2 billion annually if marijuana were taxed like alcohol and tobacco." The Marijuana Policy Project has released Miron's report along with an open letter to President Bush signed (so far) by 500 economists, including Milton Friedman. They call for "an open and honest debate about marijuana prohibition," adding, "We believe such a debate will favor a regime in which marijuana is legal but taxed and regulated like other goods."