America’s Marijuana Legalization Experiment Is Going Up in Smoke

When 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. 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, 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 states that rolled out legal weed got it wrong. Keith Humphreys, a professor at Standford 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,” he stated. “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.”

In New York, 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 with 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.” THC is the component in cannabis responsible for its psychoactive effects.

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 is licensed, but they definitely notice price differences.

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 the state came from the illegal market—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 rarely crack down on them.

A Crisis in Public Health

Beyond market failures, critics argue that the increased potency of today’s marijuana—often exceeding 20 percent THC, compared with the 3–5 percent THC typical in pot grown and sold (illegally) in the 1990s—is contributing to a rise in cannabis-related health issues, especially among teenagers 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 Centers for Disease Control and Prevention report found a significant increase in marijuana-related hospital visits, particularly among adolescents, as stronger strains become more common.

Kevin Sabet, president of nonprofit Smart Approaches to Marijuana, 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.”

Studies show that teenage cannabis use has increased in states where it’s legal. A New York Times investigation found widespread use among high-school students 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 2021 state report found that traffic fatalities involving drivers under the influence of the drug had increased by 140 percent in six years. Sabet believes America is beginning to reconsider its stance on marijuana. “Whether it’s in five, 10 or 50 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 [then].”

Public sentiment is also shifting. The smell of pot smoke is now a common complaint in New York City. Air-quality complaints to the 311 hotline for residents went from almost 4,000 in 2020 to nearly 9,000 in 2022.

The marijuana trade has also 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.

However, a 2023 Gallup poll found that 70 percent of Americans still support legal cannabis. Experts told Newsweek that the real issue is the way legalization has been structured, rather than the idea of it. “A majority of Americans support marijuana legalization, but in too many states it has been overshadowed by overcommercialization—where profits take precedence over people,” said Cat Packer, director of drug markets and legal regulation at the Drug Policy Alliance, a pro-legalization special interest group.

Since legalizing cannabis, several states have reported 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 in 2015, while New York expected to generate $161.8 million 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 reinvest funds in education and public health.

“The question is no longer if we legalize marijuana, but how we do so responsibly,” Packer said.

State lawmakers are rethinking their approach. New York Assembly Majority Leader Crystal Peoples-Stokes, a key architect of the state’s cannabis laws, last year said she was “open to reviewing” the 2021 legislation, saying, “There are some pieces of it that may not be fitting” now.

California officials are discussing stronger penalties for illegal growers, while Oregon—one of the earliest adopters of legal weed—imposed restrictions on high-potency products following reports of rising cannabis-related hospital visits.

Tighter Regulation

Many experts advocate for tighter regulations, advertising restrictions and stronger measures to combat the illicit market. One proposal gaining traction is capping THC levels.

“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,” said Humphreys.

Advocates for reforming cannabis laws might look to Europe. In Switzerland, a parliamentary committee proposed a law in February that would allow the sale and access of cannabis under a state-controlled license system—the first step toward marijuana legalization in the country.

Commercial sales would not be profit-orientated and would face strict regulation, with products sold in neutral packaging with health warnings and a complete ban on advertising, similar to tobacco products.

Germany legalized adult possession of up to 25 grams of cannabis for personal use in public last year. However, leaders of the new center-right coalition that won elections in February have already called the previous coalition’s law a “dangerous mistake” that must be “reversed” as soon as the new government is fully formed.

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