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Legalizing Marijuana Would End Black Market, Says Israeli Study

Israel, like Canada and many states in the US, has one big reason to legalize marijuana: Money. Canada launches legal medical marijuana. Colorado and Washington have legalized it. Is Israel next?
Legalizing marijuana in Israel would wipe out the black market and generate huge tax revenues, according to a a new study.

Legalizing marijuana in Israel would wipe out the black market and generate huge tax revenues, according to a a new study.

Legalizing marijuana would generate more than $450 million annually for the Israeli economy, according to  a new study released by the Jerusalem Institute for Market Studies.

The black market for cannabis in Israel currently is worth $707 million annually, and legalizing the sale of grass, if taxed like cigarettes, would blow $268 million into the government’s money pot. In addition, it would save law enforcement agencies $198 million since they would not have to spend money to smokers of weed.

The study found that approximately 275,000 Israelis, 4 percent of the population, used marijuana in the past year, only 26 percent of Israelis support legalization of marijuana, while 64 percent opposes it.

In the United States, slightly more than half go those surveyed support legalizing grass. Marijuana is illegal under federal law, but 20 states to allow the use of medical marijuana. However, the Obama administration last week gave the green light for Colorado and Washington to carry  out their laws to permit recreational use of marijuana.

The Justice Department said it would bring charges on marijuana only in certain cases, such as distributing it to minors.

The announcement “demonstrates the sort of political vision and foresight from the White House we’ve been seeking for a long time,” said Ethan Nadelmann, executive director of the Drug Policy Alliance, an advocacy group.

The Justice Department added that it is watching Colorado and Washington closely to see  if they can properly control marijuana use.

President Barack Obama has said he smoked grass when he was young, and a federal survey has found that 42 percent of Americans age 12 and older have smoked marijuana at some point in their lives.

The financial gains for states – and Israel is not being ignored,

“Recognizing the enormous financial gains that would come from legalization demands that the government take a serious look at the proposal to legalize cannabis use under specific guidelines,” said Yarden Gazit, who co-authored the study in Israel.  “There is no disputing that if the public is able to get past the wholly negative misperceptions associated with marijuana usage and appreciate the potential benefits with limited social or healthcare costs, this is an idea that needs open-minded and serious re-examination at this time.”

News of the survey coincided with Canada’s launch of controlled medical marijuana, an industry that is expected to be worth more than $1 billion in the next 10 years. Medical marijuana has been legal in Canada for years but has been highly regulated. Now it is available by mail-order with a doctor’s approval.

Besides all of the arguments  over whether marijuana is a drug that can lead to addiction, the underlying desire for governments to legalize it is money.

“We’re fairly confident that we’ll have a healthy commercial industry in time,” Sophie Galarneau, a senior Health Canada official told the Canadian Press.  

The Green Leaf party in Israel has been trying to get into the Knesset for years to push its agenda to legalize pot. In early pre-election polls, it usually receives support that puts it on the brink of winning the minimum number of votes to win Knesset seats, but when the real ballots are counted, it always loses out.

The pro-marijuana campaigns in the United States may generate new enthusiasm to legalize marijuana in Israel, where liberal leaders  almost always turn to American for cultural guidance.

Portland, Maine media reported Wednesday that supports of legalizing recreation marijuana will start promoting their agenda on city buses, with a message that grass is a better and safer alternative to alcohol.

Critics have complained that the campaign should not be on buses because children ride them to school.

Portland’s voter will go the ballot box in November to decide on a proposal to legalize marijuana by 2016. I

The Washington, D.C.-based Marijuana Policy Project has targeted Maine and nine other states in its campaign to legalize grass within three years.

The JTA contributed to this report.

About the Author: Tzvi Ben Gedalyahu is a graduate in journalism and economics from The George Washington University. He has worked as a cub reporter in rural Virginia and as senior copy editor for major Canadian metropolitan dailies. Tzvi wrote for Arutz Sheva for several years before joining the Jewish Press.


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26 Responses to “Legalizing Marijuana Would End Black Market, Says Israeli Study”

  1. That’s why governments are against legalization. Money from both marketeers “cartels” and enforcement’s money to arrest as well people living off the enforcement business, bribed politicians from all sides would lose big.

  2. Shemayah Shiloh Phillips says:

    That’s why governments are against legalization. Money from both marketeers “cartels” and enforcement’s money to arrest as well people living off the enforcement business, bribed politicians from all sides would lose big.

  3. Legalizing Marijuana should have been done a long time ago… such nonsense.. Big cartels and prisons and business interests and IGNORANCE prevents it.

  4. Charna Carole Ball says:

    Legalizing Marijuana should have been done a long time ago… such nonsense.. Big cartels and prisons and business interests and IGNORANCE prevents it.

  5. Dave Lobell says:

    It would work out very well so long The Israeli government does not follow the State of Arizona's lead which has priced itself out of the legal market by charging $350.00 for an Ounce of product or $20.00 for one joint. Leave it to the Boneheads(pun intented) in government to ruin a much needed revision of the law.

  6. Dave Lobell says:

    It would work out very well so long The Israeli government does not follow the State of Arizona's lead which has priced itself out of the legal market by charging $350.00 for an Ounce of product or $20.00 for one joint. Leave it to the Boneheads(pun intented) in government to ruin a much needed revision of the law.

  7. Anonymous says:

    YEEEEES

  8. HOOVILLE47 says:

    weedbay420 Legal Marijuana $$$450 Million Annually For Israel

  9. Anonymous says:

    "Legalizing marijuana would end black market." That is a statement that is logically true, in and of itself, by definition of what a "black market" is. But so what? So would legalizing prostitution. Does that make it the right thing to do? No! Another nail in the coffin of keeping Eretz Yisrael the Holy Land!

  10. John Thomas says:

    Marijuana prohibition was a fraud from its beginning in 1937, when perpetrated by soon-to-be-out-of-work alcohol prohibition bureaucrat, Harry Anslinger. He desperately needed a new empire and no lie was too big to tell to get it.

    In all it's miserable, counter-productive 76 years, marijuana prohibition has never accomplished one positive thing. It has ONLY caused vast amounts of crime, violence, corruption, death and the severe diminishment of everyone's freedom.

    Thank goodness we are now ending the freedom-strangling American Inquisition!

  11. John Thomas says:

    After the dust settles on re-legalization, average quality marijuana will sell for around $50 an ounce, plus taxes. – It's just a plant.

  12. Anonymous says:

    Go Israel!

  13. John Thomas i bet its way lower than that for the best when its legal across N America tax included

  14. Israel has been too afraid of the U.S. to legalize it. As AG Holder tries to negotiate terms of surrender, maybe Israel can be part of the peace.

  15. Jim Paddington says:

    Crackup! You'd think you could come to that conclusion without a study considering that there's not really any point or demand for legal things on a black market..

  16. Chris O'Hara says:

    everything you think you know about cannabis is a lie

  17. Anonymous says:

    the story goes instate wengerocracy and legalize marijuana in palestine and israel on the same day and the next 3000 years will be peace. thats my bible

  18. Malcolm Kyle says:

    Here is a list of 25 studies showing that marijuana cures cancer, categorized by the type of cancers being cured in each study. Note that the consistent theme between them is that marijuana shrinks tumors and selectively targets cancer cells.

    Cures Brain Cancer
    http://www.nature.com/bjc/journal/v95/n2/abs/66032
    http://www.ncbi.nlm.nih.gov/pubmed/11479216
    http://www.jneurosci.org/content/21/17/6475.abstra
    http://jpet.aspetjournals.org/content/308/3/838.ab
    http://mct.aacrjournals.org/content/10/1/90.abstra

    Cures Mouth and Throat Cancer
    http://www.ncbi.nlm.nih.gov/pubmed/20516734

    Cures Breast Cancer
    http://www.ncbi.nlm.nih.gov/pubmed/20859676
    http://www.ncbi.nlm.nih.gov/pubmed/18025276
    http://www.ncbi.nlm.nih.gov/pubmed/21915267
    http://jpet.aspetjournals.org/content/early/2006/0
    http://www.molecular-cancer.com/content/9/1/196
    http://www.ncbi.nlm.nih.gov/pubmed/22776349
    http://www.pnas.org/content/95/14/8375.full.pdf+ht

    Cures Lung Cancer
    http://www.ncbi.nlm.nih.gov/pubmed/22198381?dopt=Abstract
    http://www.ncbi.nlm.nih.gov/pubmed/21097714?dopt=Abstract
    http://www.nature.com/onc/journal/v27/n3/abs/12106

    Cures Uterine, Testicular, and Pancreatic Cancers
    http://www.cancer.gov/cancertopics/pdq/cam/cannabi
    http://cancerres.aacrjournals.org/content/66/13/67

    Cures Prostate Cancer
    http://www.ncbi.nlm.nih.gov/pubmed/12746841?dopt=Abstract
    http://www.nature.com/bjc/journal/v101/n6/abs/6605
    http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3339795/?tool=pubmed
    http://www.ncbi.nlm.nih.gov/pubmed/22594963

    Cures Colorectal Cancer
    http://gut.bmj.com/content/54/12/1741.abstract http://www.ncbi.nlm.nih.gov/pubmed/22231745

    Cures Ovarian Cancer
    http://www.aacrmeetingabstracts.org/cgi/content/abstract/2006/1/1084?maxtoshow&hits=80&RESULTFORMAT&fulltext=cannabinoid&searchid=1&FIRSTINDEX=560&resourcetype=HWCIT

    Cures Blood Cancer
    http://www.ncbi.nlm.nih.gov/pubmed

  19. the greatest plant in the universe is almost free for all, LET FREEDOM RING!!!

    hundreds of thousands die every year from alcohol and tobacco, every year! not one death from marijuana, ever…cannabis is about to revolutionize the planet, LOVE and FREEDOM

    AMERICA'S WAR ON DRUGS IS A WAR ON AMERICANS!!!

  20. Raymond Ravinsky says:

    Prohibition is a crime. Legalize NOW !!!

  21. Haiti should do same.

  22. Yes, Haiti should the same.

  23. I think Haiti should do the same.

  24. What the article doesn't tell you, is that Canada is also taking the private production rights away from current patients. The industry is starting its pricing 10X the current cost to patients that provide their own medicine. In effect, the most marginalised and unable, are being silently sacrificed to economic interests. Harper is building new prisons to hold us….

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