Our Perspective: Medical Marijuana In New Mexico

By Americans for a Modern Economy

February 4, 2020

The New Mexico legislature is currently considering whether or not to legalize recreational marijuana and proponents as well as opponents have legitimate arguments on their side. And right now, they are in the “if” part of the process - should they or should they not legalize? And whether they do or not, our organization is largely agnostic. We are more concerned about the “how” - the regulatory regime that is put in place if they decide to go forward. That is where the real fun begins.

As the modern economy evolves, policy makers across the country are grappling with a new, technology-based market system that is re-writing the rules of commerce, taxation and regulation. The world of e-commerce, third-party delivery and the gig economy are but a few examples of how remarkably complex the new economic marketplace is but yet at the same time, how equally straightforward and accessible it is.And policymakers are legitimately trying to protect consumers and traditional employers while simultaneously trying not to discourage innovation and progress. No easy task, indeed.

One way elected officials can work to satisfy many of those priorities is to be equally innovative when it comes to regulating the new economy. But the worst thing policy makers can do with regard to the modern economy is try to manage it with old economy constraints. Too often, policymakers opted to enter into this pool in what they thought was a slow and cautious approach which often resulted in picking picked ‘picked winners and losers’ and both over-regulating a sector of the economy while simultaneously shutting out many entrants. The Prohibition-era three-tiered alcohol system is a perfect example of an old economy structure that stifles innovation but is slowly eroding away, succumbing to the pressure of the new economy. If we had to erase the board and start all over, we would never have set up such a structure that has so rife with legal, political and regulatory patronage that has shortchanged consumers for nearly a century.

Similarly, if New Mexico is going to go down the road of recreational marijuana - again, we have no position on that - then they should do it in a way that recognizes the modern economy, the modern consumer and create a regulatory system that is fair, open and accessible. If responsible retailers and vendors want to participate, let them. If they don’t, fine. Let consumers pick and choose who they should patronize, not be dictated to by policy makers picking and choosing for them. Leveraging old economy tools to regulate the current and future marketplace is like building a house one room at a time. Eventually one day you step back onto the sidewalk and look at it and say, “what in the world was I thinking”?