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America’s Marijuana Legalization Experiment Is Going Up in Smoke
Mar
hen marijuana legalization first started gaining momentum in the United States, it was heralded as a progressive step toward criminal justice reform, economic growth and public health benefits all at once. Advocates promised that legal cannabis would eliminate the illicit market, generate tax revenue and ensure a safe, well-regulated industry.
That is not how things have turned out.
Across the country, from New York to California, signs of disillusionment are emerging. Illegal dispensaries continue to thrive, crime linked to the cannabis trade is rising, and critics argue that the public was misled about the risks of high-potency pot that has flooded the legal market.
A growing number of experts, politicians, and even former supporters of legalization are questioning whether the rollout of legal weed was too rushed—and if the U.S. states that went forward with legalization plainly got it wrong.
A Rushed Experiment?
Keith Humphreys, a professor at Stanford University specializing in drug policy, argues that legalization was sold to the public on overly optimistic premises. “People were told not only does this have no health harm, but it’s actually good for you,” Humphreys told Newsweek.
“They were promised a well-regulated industry that would behave, pay a lot of taxes, and create jobs. None of those things have happened. So it’s understandable that there would be buyer’s remorse.”
Few places illustrate the growing discontent more vividly than New York, where legalization has turned into what even the progressive governor, Kathy Hochul, has called “a disaster.” The state has struggled to control the black market, with as many as 8,000 unlicensed dispensaries in New York City alone, compared to just 140 legal operations.
“The illegal shops have severely undercut the legal market,” Humphreys said. “They sell the same products at a fraction of the price, with no oversight—evading taxes, flouting safety regulations, and often offering high-potency THC products to minors.”
Legal store owners, forced to comply with strict regulations and high taxes, find themselves unable to compete with the illicit sellers. Most cannabis users aren’t concerned about whether their shop in Brooklyn or Manhattan is licensed, but they definitely notice when they are being charged more.
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California, which has had legal recreational marijuana since 2016, faces a similar problem. A 2023 audit found that two-thirds of the cannabis sold in California came from the illegal market, amounting to billions in untaxed sales. In Los Angeles, law enforcement officials have reported a rise in cartel-linked cannabis operations, undermining the initial goal of replacing illegal dealers with a safe, regulated industry.
The story is much the same across the country. In Oregon, where cannabis was legalized in 2014, the illegal market remains strong. In Washington, D.C., an estimated 100 illegal weed shops operate—10 times the number of licensed medical dispensaries, according to city officials. In Michigan, where legal sales have surpassed California’s, illegal growers thrive, and courts and prosecutors rarely crack down on them.
A Crisis in Public Health
Beyond market failures, health concerns are mounting. Critics argue that the increased potency of today’s marijuana—often exceeding 20 percent THC, compared to the 3–5 percent THC levels typical in pot grown and sold (illegally) in the 1990s—is contributing to a rise in cannabis-related health issues, especially among teens who do not yet have fully developed cognitive function.
“We have moved from an era where the typical marijuana user consumed a low-potency product once a week to a market where the typical user consumes high-potency products daily,” Humphreys said.
“That’s about a 65-fold increase in exposure each week for the average cannabis user, and we don’t know the full effects of that.”
Emerging research has linked heavy cannabis use to cognitive impairment, reduced attention spans and mental health disorders, including psychosis and schizophrenia. A 2023 report from the Centers for Disease Control and Prevention (CDC) found a significant increase in marijuana-related hospital visits, particularly among adolescents, as stronger strains become more common.
Kevin Sabet, the president of the nonprofit Smart Approaches to Marijuana (SAM), has been an outspoken critic of the current commercialization model. “Today’s marijuana is strengthened by very high-potency growing methods that have resulted in record levels of psychosis, schizophrenia, suicide, IQ loss, and other issues,” Sabet said.
“I think people are finally realizing what the harms of this substance are.”
More Students Getting High
Supporters of legalization once argued that recreational marijuana would reduce youth exposure, perhaps taking the “edge” off consuming an illicit drug. However, studies show that teenage cannabis use has actually increased in states where it’s legal.
A New York Times investigation found that marijuana use among high-school students is widespread in New York City, with teachers reporting that cannabis vaping is now common in school bathrooms. Local authorities said drug-related disciplinary incidents in schools rose by 17 percent in 2022, just a year after the city legalized cannabis.
Public safety concerns extend beyond schools. In Colorado, which pioneered marijuana legalization in 2012, a recent state report found that cannabis-related DUI arrests have surged, and traffic fatalities involving drivers under the influence of marijuana have increased by 140 percent.
Sabet believes America is beginning to reconsider its stance on marijuana. “Whether it’s in five, ten, or fifty years, we will have a reckoning with marijuana, just like we did with tobacco,” he said. “I just hope we don’t have to lose too many lives before we finally realize the truth.”
Public sentiment is also shifting as communities experience the unintended consequences of legalization. The overpowering smell of pot smoke is now a common complaint in New York, from subway stations to residential neighborhoods. Air-quality complaints to 311, the city’s hotline for residents, went from 4,000 in 2020 to 9,000 in 2022.
Beyond olfactory nuisances, the marijuana trade has been linked to an increase in crime. In 2023, according to the New York Police Department, there were 736 robbery complaints at unlicensed cannabis shops in New York City, some of which turned violent.
A Shift in Public Opinion?
Despite legalization’s flaws, marijuana remains popular in the U.S. A 2023 Gallup poll found that 68 percent of Americans still support legal cannabis. But experts who spoke to Newsweek say that the way legalization has been structured is the real issue—not the idea of legalization itself.
“A majority of Americans support marijuana legalization, but in too many states, it has been overshadowed by over-commercialization—where profits take precedence over people,” Cat Packer, director of drug markets and legal regulation at the Drug Policy Alliance, a pro-legalization special interest group, told Newsweek.
Since legalizing cannabis, several states have reported significant benefits, including reduced arrests, legal relief for thousands of people with outstanding marijuana summonses and millions in tax revenue reinvested into communities. Colorado collected $135 million in marijuana tax revenue by 2015, while New York expects to generate $161.8 million in cannabis taxes for the fiscal year ending March 2025. In California, 60 percent of marijuana tax revenue funds youth programs, part of a promise that legalization would not just reduce the burden on the criminal justice system but also reinvest funds in education and public health.
“The question is no longer if we legalize marijuana, but how we do so responsibly,” adds Packer.
State lawmakers are now rethinking their approach. In New York, Assembly Majority Leader Crystal Peoples-Stokes, a key architect of the state’s cannabis laws, recently said she is “open to reviewing” the legislation. “There are some pieces of it that may not be fitting for 2024,” she admitted.
Even some of the most permissive states are reconsidering their stance. California officials are discussing stronger penalties for illegal growers, while Oregon—one of the earliest adopters of legal weed—has imposed new restrictions on high-potency products following reports of rising cannabis-related hospital visits.
Yet, while few believe marijuana should be fully re-criminalized, there is growing recognition that the current policy frameworks are not working. Many experts advocate for tighter regulations, advertising restrictions and stronger measures to combat the illicit market.
One proposal gaining traction is capping THC potency levels to prevent the spread of ultra-potent products. Humphreys, the Stanford professor, believes this would be a step in the right direction.
“We regulate the alcohol industry by limiting proof levels—no one can legally sell 190-proof liquor in a bar. We should do the same with marijuana,” he said.
Advocates for reforming cannabis laws might look to Germany, which legalized adult possession of up to 25 grams of cannabis for personal use in public last year. Since the new center-right coalition won elections last month, leaders of that alliance have already said that the previous coalition’s law was a “dangerous mistake” that must be “reversed” as soon as the new government is fully formed.
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About the writer
Jesus is a Newsweek reporter based in New York. Originally from Bogotá, Colombia, his focus is reporting on politics, current …A Rushed Experiment?
Keith Humphreys, a professor at Stanford University specializing in drug policy, argues that legalization was sold to the public on overly optimistic premises. “People were told not only does this have no health harm, but it’s actually good for you,” Humphreys told Newsweek.
“They were promised a well-regulated industry that would behave, pay a lot of taxes, and create jobs. None of those things have happened. So it’s understandable that there would be buyer’s remorse.”
Few places illustrate the growing discontent more vividly than New York, where legalization has turned into what even the progressive governor, Kathy Hochul, has called “a disaster.” The state has struggled to control the black market, with as many as 8,000 unlicensed dispensaries in New York City alone, compared to just 140 legal operations.
California, which has had legal recreational marijuana since 2016, faces a similar problem. A 2023 audit found that two-thirds of the cannabis sold in California came from the illegal market, amounting to billions in untaxed sales. In Los Angeles, law enforcement officials have reported a rise in cartel-linked cannabis operations, undermining the initial goal of replacing illegal dealers with a safe, regulated industry.
The story is much the same across the country. In Oregon, where cannabis was legalized in 2014, the illegal market remains strong. In Washington, D.C., an estimated 100 illegal weed shops operate—10 times the number of licensed medical dispensaries, according to city officials. In Michigan, where legal sales have surpassed California’s, illegal growers thrive, and courts and prosecutors rarely crack down on them.
A Crisis in Public Health
Beyond market failures, health concerns are mounting. Critics argue that the increased potency of today’s marijuana—often exceeding 20 percent THC, compared to the 3–5 percent THC levels typical in pot grown and sold (illegally) in the 1990s—is contributing to a rise in cannabis-related health issues, especially among teens who do not yet have fully developed cognitive function.
“We have moved from an era where the typical marijuana user consumed a low-potency product once a week to a market where the typical user consumes high-potency products daily,” Humphreys said.
“That’s about a 65-fold increase in exposure each week for the average cannabis user, and we don’t know the full effects of that.”
