Marijuana is currently listed as a Schedule 1 drug by the U.S. Drug Enforcement Administration (DEA), which still defines cannabis as among the most illegal of substances, and it would require either a reclassification on the DEA’s part or by the Food and Drug Administration (FDA), or by an act of the U.S. Congress, for it to be legally bought, sold, possessed and consumed. Schedule 1 substances are defined as having no currently accepted medical use and a high potential for abuse. While numerous evidence-based studies have challenged the inclusion of cannabis on that list — along with LSD, peyote and other psychoactive substances — there are no plans to remove marijuana from Schedule 1 designation, although cannabidiol (CBD), a nonpsychoactive ingredient found in the hemp plant, has been reclassified to Schedule 5, defined as substances considered to be medication, containing minor, if any, narcotic quantities and relatively low potential for abuse.

While currently 23 American states have legalized the sale and possession of cannabis, with almost 20 more having decriminalized possession of small amounts, federal law enforcement can still serve warrants and arrest individuals who grow, sell or possess marijuana regardless of those individual states’ decision to legalize it. In addition, federal regulations drive banking policies that prohibit weed-based businesses from allowing customers to use credit and debit cards, nor can corporate credit accounts be used by the pot shops for purchasing the plant or cannabis-infused products, such as edibles, requiring these enterprises to deal in cash only. These are just a few of the practical obstacles faced in those states where marijuana has been legalized or decriminalized.

Some benefits and problems of legalized cannabis

There have been numerous benefits reported since Colorado and Washington became the first states to legalize recreational cannabis in 2012. Perhaps foremost among these is the dramatic
increase to the state coffers, with Washington earning over $200 million from taxes on cannabis products sold during the first year of legalization, and as of 2022, over $500 million. Colorado, which taxes marijuana products at a much lower percentage than Washington, earns over $2 million annually. Forbes magazine reports that all states that are currently collecting taxes on marijuana sales have far exceeded their expectations, with annual average intakes ranging from $40 to $400 million in tax revenues every year from both recreational and medicinal cannabis products.

In Colorado, total arrests for impaired driving have actually declined since pot was made legal, with 33% fewer incidents reported, and similar numbers from other states where weed has been legalized indicate that DUIs have decreased significantly there as well. To be clear, driving while high on cannabis (or other psychoactive substances) is not necessarily safer than driving drunk, and operating a vehicle under the influence of marijuana is illegal in every state, even where it’s lawful to purchase and possess.

Another financial benefit relates to the significant savings to law enforcement and the criminal justice system in states and communities that have legalized or decriminalized weed, where there is no longer a need to actively pursue small-time marijuana cases. Such savings for states could amount to hundreds of millions of dollars, and thousands of citizens will no longer be getting arrested, charged or convicted for the unlawful possession, saving unknown amounts in fines, penalties, lost wages and other related costs.

Less tangible but potentially significant benefits from legalization involve allowing unfettered exploration in developing promising therapeutic uses for cannabis, particularly in the treatment of PTSD, as some of the chemical compounds contained in the plant can help in bolstering the brain’s own healing abilities. In addition, serious academic research that has been stalled for years due to prohibitions on access to cannabis can now proceed, hopefully allowing scientists to discover other potential healing benefits heretofore unknown.

While many of the dangers and potential harms that were predicted prior to widespread legalization have not come to pass, such as increased use among children and teens, dramatically expanded black market sales and increased driving accidents, one unforeseen development has been the increase in the number of users consuming edible forms of cannabis, and the availability of highly potent strains and concentrated forms of the drug, which has led to a significant increase in emergency room visits from individuals who were unprepared for the powerful effects they experienced, leading to severe panic attacks, psychotic episodes and cardiac arrythmia. While these events are small in number, they do represent a potential downside worth noting.

Implications for the criminal justice system

As mentioned previously, for the most part, in the states that have legalized or decriminalized cannabis, some aspects of criminal justice budgets have generally experienced savings in the cost of doing business 

It is highly likely that fewer convictions may mean less profit for private correctional agencies, and so it is not surprising that the private prison industry, along with major pharmaceutical firms, have been lobbying intensely to rein in the legalization of marijuana. There are around one million drug possession arrests in the U.S. each year, representing over 20% of the prison population, with a disproportionate number being people of color and Latinos.

International relevance

Among the most dramatic effects resulting from the expanded acceptance of recreational cannabis is the reduction in black market activities in the states where it has been made legal. While thriving in states that still observe pot prohibitions, the DEA estimates that if it were made legal across the nation, the black market in cannabis, primarily run by dealers from Mexico, Jamaica and Colombia, would be almost worthless in about three years following total legalization.

While many results of America’s relaxation of cannabis prohibition are promising — in terms of crime and incarceration reduction, psychotherapeutic treatments and research, and other social benefits — arguably the international community has taken note of Portugal’s decision to decriminalize all psychoactive substances in 2001. Since then, Portugal has experienced extraordinary reductions in overdoses, addiction, HIV infection and drug-related crime. The heart of their approach emphasizes treatment, harm reduction and support services, rather than moral stigma, criminalization and judgmental attitudes. This development has likely had more impact on the international community than America’s states liberalizing their stand on marijuana. As of this writing, over 40 countries have legalized cannabis fully or partially for medical and/or adult consumption, not including several others that have decriminalized possession for small amounts of personal use.