How To Eliminate the Black Market

As more and more states move to legalize marijuana, all eyes are on the results. Will the sky fall? Will things get better? One argument from the pro-legalization side is that ending prohibition will eliminate the black market for marijuana. If people can buy it in stores, why would they go to a dealer? Anti-legalization advocates point to black market busts happening in states with legalized marijuana and say, "this hasn't changed anything." So what is the answer?

Legalization comes on a spectrum. If tough regulatory laws and heavy taxes burden the cannabis economy - the black market will continue. People will be drawn to the quality assured, risk-free benefits of buying legalized cannabis, but may be dissuaded if the price is twice that of the street rate. Harvard economist Jeffrey Miron takes a market-based look at legalization and the black market in this Denver Post article.