The History of Cannabis Prohibition in the U.S.
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The History of Cannabis Prohibition in the U.S.

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The following content is sponsored by Tenacious Labs.

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The History of Cannabis Prohibition in the U.S.

The legal status of cannabis in the U.S. isn’t always clear. At the federal level, it is an illegal Schedule I drug. However, individual states have the ability to determine their own laws around cannabis sales and usage.

But cannabis was not always illegal at the top level. It was only in the last 100 years that cannabis faced a prohibition similar to the alcohol prohibition of the early 1920s.

In this infographic from Tenacious Labs, we explore the fascinating history of cannabis prohibition in the U.S. dating all the way back to the 1900s.

The Early History of Cannabis Legality

The earliest laws surrounding the cannabis plant in the U.S. were drafted before the country was even founded. In 1619, a law was passed in the colony of Virginia which required every single farm to grow cannabis and produce hemp, an important commodity at the time.

Over time, marijuana from the cannabis plant started to be used for medicinal purposes. Early recreational use was first introduced by Mexican immigrants in the early 1900s.

Flash forward to the 1930s, when the country was struggling financially during the Great Depression. To encourage economic growth, alcohol prohibition was lifted, and those who had supported teetotalling began to target marijuana instead. At the time, cannabis was consumed largely in black and Mexican communities, and racist attitudes began to shape an association between crime, lewd behavior, immorality, and marijuana.

Legal Changes

The 1930s marked the beginning of America’s war against marijuana. Here’s a glance at some of the most famous laws around cannabis prohibition:

  • The Marihuana Tax Act (1937)
  • The Boggs Act (1952)
  • The Narcotics Control Act (1956)
  • The Controlled Substances Act (1971)

In 1937, the Marihuana Tax Act was enforced, prohibiting marijuana federally but still allowing medical use. Prior to that, 29 states had already outlawed marijuana on their own.

But by the 1950s, a counterculture movement had begun, with young people using marijuana recreationally much more than previous generations.

Eventually, the Boggs Act (1952) and Narcotics Control Act (1956) were put in place to combat the counterculture. These laws set mandatory sentences for drug-related offenses, including marijuana. A first-offense marijuana possession conviction could result in a minimum sentence of 2-10 years with a fine of up to $20,000.

In 1970, cannabis was classified as a Schedule I drug—the same category as heroin—under the Controlled Substances Act. However, the 70s also saw an opposing shift, with a number of states beginning to decriminalize marijuana.

ℹ️ Decriminalization means that although possessing marijuana remains illegal, one is not subject to prosecution or jail time for possessing certain amounts.

After decriminalization, commercial businesses began to capitalize and started to market marijuana-related products. Some products were marketed towards children, which, in tandem with the intensive hippie culture from the 70s, sparked a war against marijuana led by parents and supported by president Ronald Reagan.

The Modern Era

During the 1990s, five states passed laws to allow the medical usage of marijuana—between 2010 and 2020, 16 states passed medical marijuana laws.

StateLegal Status
AlabamaMedical
AlaskaAdult use
ArizonaAdult use
ArkansasMedical
CaliforniaAdult use
ColoradoAdult use
ConnecticutAdult Use
DelawareMedical
FloridaMedical
GeorgiaMedical (Limited)
HawaiiMedical
IdahoIllegal
IllinoisAdult use
IndianaMedical (Limited)
IowaMedical (Limited)
KansasIllegal
KentuckyIllegal
LouisianaMedical
MaineAdult use
MarylandMedical
MassachusettsAdult use
MichiganAdult use
MinnesotaMedical
MississippiMedical (Limited)
MissouriMedical
MontanaAdult use
NebraskaIllegal
NevadaAdult use
New HampshireMedical
New JerseyAdult use
New MexicoAdult use
New YorkAdult use
North CarolinaMedical (Limited)
North DakotaMedical
OhioMedical
OklahomaMedical
OregonAdult use
PennsylvaniaMedical
Rhode IslandMedical
South CarolinaMedical (Limited)
South DakotaMedical
TennesseeMedical (Limited)
TexasMedical (Limited)
UtahMedical (Limited)
VermontAdult use
VirginiaAdult use
WashingtonAdult use
Washington, DCAdult use
West VirginiaMedical
WisconsinIllegal
WyomingIllegal

In 2021, a total of 18 states have fully legalized cannabis, while another 26 have allowed marijuana usage for medicinal purposes in some capacity. Furthermore, the MORE Act—a bill to legalize marijuana federally—was reintroduced in the House of Representatives in May 2021.

If passed, the MORE Act (the Marijuana Opportunity Reinvestment and Expungement Act) would essentially remove cannabis from its classification as a Schedule I drug under the Controlled Substances Act. It would also work towards the expungement of criminals who were charged with crimes related to marijuana.

While the U.S. government has gone back and forth with cannabis legalization over the years, it appears that in the 21st century, the path only leads one way: towards federal legalization.

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Visualizing America’s Electric Vehicle Future

The U.S. is accelerating its transition to electric vehicles but obtaining the minerals and metals required for EVs remains a challenge. In this infographic, we explore America’s transportation future.

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Visualizing America’s Electric Vehicle Future

The U.S. is accelerating its transition to electric vehicles (EV) to address climate change. However, obtaining the minerals and metals required for EV batteries remains a challenge.

In this infographic from Talon Metals and Li-Cycle, we explore the country’s strategy to have vehicles, batteries, and key parts be made in the United States.

Then, we look at how this strategy could be fueled by domestic mining and battery recycling.

The All-Electric America

Gasoline-powered cars are one of the biggest sources of carbon pollution driving the climate crisis. As a result, the Biden Administration has set a target for EVs to make up 50% of all new car sales in the U.S. by 2030. Today, fewer than 1% of the country’s 250 million vehicles are electric.

In November 2021, Congress passed the Bipartisan Infrastructure Deal, which includes:

  • Replacing the government’s 650,000 vehicle motor pool with EVs.
  • Electrifying 20% of the country’s 500,000 school buses.
  • Investing $7.5 billion to build out a network of 500,000 electric vehicle chargers across the country.

The idea also has popular support. According to a poll, 55% of voters in the U.S. support requiring all new cars sold in their state to be electric starting in 2030.

However, rising EV sales are already driving demand for battery metals such as nickel, lithium, and copper, threatening to trigger a shortage of these key raw materials. So, does the U.S. have the raw materials needed to meet this rising demand?

Currently, the U.S. is import-dependent with large parts of the battery supply chain captured by China. Likewise, some essential metals for EVs are currently extracted from countries that have poor labor standards and high CO2 footprints.

Nickel in the Land of Opportunity

The Biden Administration’s 100-day review of critical supply chains recommended the government should prioritize investing in nickel processing capability.

Today, the only operating nickel mine in the U.S., the Eagle Mine in Michigan, ships its concentrates abroad for refining and is scheduled to close in 2025.

To fill the supply gap, Talon Metals is developing the Tamarack Nickel Project in Minnesota, the only high-grade development-stage nickel mine in the country. Tesla has recently signed an agreement to purchase 75,000 metric tonnes of nickel in concentrate from Tamarack.

Since the development and construction of a mine can take many years, recycling is considered an essential source of raw material for EVs.

The Role of Battery Recycling

Battery recycling could meet up to 30% of nickel and 80% of cobalt usage in electric vehicles by the end of the decade.

The bipartisan $1.2 trillion infrastructure bill already sets aside $6 billion for developing battery materials processing capacity in the United States.

By 2030, the U.S. alone is projected to have more than 218,000 tonnes of EV battery manufacturing scrap and 313,000 tonnes of end-of-life EV batteries per year, presenting a massive opportunity for recycling. Currently, Li-Cycle, a leading lithium-ion battery recycler in North America, can process up to 10,000 tonnes of battery material per year—and this capacity is set to grow to up to 30,000 tonnes by the end of 2022.

Li-Cycle also has a hydrometallurgy refinement hub under construction in Rochester, New York, which will process up to the equivalent of 225,000 EV batteries annually into battery-grade lithium, nickel, and cobalt when it is operational in 2023.

America’s Electric Vehicle Future

The auto industry’s future “is electric, and there’s no turning back,” according to President Biden. It’s expected that EV sales in the U.S. will grow from around 500,000 vehicles in 2021 to over 4 million in 2030.

With rising government support and consumers embracing electric vehicles, securing the supply of the materials necessary for the EV revolution will remain a top priority for the country.

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Retirement Spending: How Much Do Americans Plan to Spend Annually?

Retirement expenses can vary significantly from person to person. In this graphic, we show the range of expected retirement spending.

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Retirement Spending

Americans’ Expected Annual Retirement Spending

Planning for retirement can be a daunting task. How much money will you need? What will your retirement spending look like?

It varies from person to person, based on factors like your health, outstanding expenses, and desired lifestyle. One helpful trick is to break it down into how much you estimate you’ll spend each year.

In this graphic from Personal Capital, we show the expected annual retirement spending of Americans. It’s the last in a three-part series that explores Americans’ spending and savings.

The Range of Retirement Spending

To determine how much people expect to spend, we used anonymized data from users of Personal Capital’s retirement planning tool. It’s worth noting that these users are proactive regarding financial planning. They also have a median net worth of $829,000 compared to the $122,000 median net worth of the U.S. population overall.

Here is the range of expected annual retirement spending.

Expected Annual Retirement SpendingPercent of People
$10K1.3%
$20K3.3%
$30K7.5%
$40K9.8%
$50K5.2%
$60K12.7%
$70K10.2%
$80K6.4%
$90K9.1%
$100K5.4%
$110K1.5%
$120K9.7%
$130K1.5%
$140K2.8%
$150K2.2%
$160K0.9%
$170K0.4%
$180K2.7%
$190K0.7%
$200K0.8%
$210K0.5%
$220K0.2%
$230K0.1%
$240K1.6%
$250K0.3%
$260K0.2%
$270K0.1%
$280K0.1%
$290K0.1%
$300K0.7%
Over $300K2.1%

Users are a mix of single individuals and people in a relationship. In all cases, expected retirement spending is what the household expects to spend annually.

The most commonly-cited expected spending amount is $60,000. Interestingly, this is roughly in line with what Americans spend annually on their credit cards. This suggests that people may be using their current bills to help gauge their future retirement spending.

Median spending, or the middle value when spending is ordered from lowest to highest, falls at $70,000. However, average spending is a fair amount higher at $100,000. This is because the average is calculated by adding up all the expected retirement spending amounts and dividing by the total number of users. Higher expected spending amounts, some in excess of $300,000 per year, skew the average calculation upwards.

Of course, given their higher net worth, it’s perhaps not surprising that many Personal Capital users expect to spend larger amounts in retirement. How does this compare to the general population? According to the Bureau of Labor Statistics, Americans age 65 and older spend about $48,000 per year on average.

Chances of Retirement Success

Once you’ve determined how much you’ll spend in retirement, your next step may be to wonder if your savings are on track. Based on an assessment of Personal Capital retirement planner users, here is the breakdown of people’s chance of success.

Retirement Spending Chance of Success

The good news: more than half of people have an 80% or better chance of meeting their retirement spending goals. This means they have sufficient financial assets and are contributing enough, regularly enough, to meet their expected spending amount. The not so good news: one in five people has a less than 50% chance of meeting their goals.

This problem is even more troublesome in the overall U.S. population. Only 50% of people have a retirement account, and the Center for Retirement Research at Boston College estimates half of today’s workers are unprepared for retirement.

Setting Your Own Retirement Spending Goals

While seeing the goals of others is a starting point, your annual retirement spending will be very specific to you. Not sure where to start?

Financial planners typically recommend that you should plan on needing 70-80% of your pre-retirement income in retirement. This is because people generally no longer have certain expenses, such as commuting or childcare costs, when they retire. However, keep in mind your expenses could be higher if you still have a mortgage, encounter unforeseen medical expenses, or want to splurge on things like travel when you retire.

It requires some upfront planning, but being realistic about your retirement spending can give you confidence in your financial future.

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