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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?

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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.

Tzvi Ben-Gedalyahu

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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