Skip to main content

Guess what's the real reason of the legalization of gambling and marijuana

Richard Wolff explains perfectly the real reason behind the legalization of gambling and marijuana, which has nothing to do with some kind of shift of the states towards progressive policies.


As Wolff says:

Starting a few decades ago, Americans who have been told to save their money, who have been told in church that gambling was sinful, we're told that now the world has changed and you should please gamble every day, as much as possible. We call that the lottery system.

On every corner, in every tobacco store, in every stationary store, in countless drug stores, people are trying to sell you scratch tickets, lottery tickets, mega millions this, mega box that. That was once thought sinful, wasteful, inappropriate. Now we're been told 'you can't win if you don't play'.

And over the last few years, another unthinkable has happened. The following states have now legalized the recreational use of marijuana: Colorado, Washington, California, Nevada, Massachusetts and Maine. Six states have made it legal and it is a booming business.

We have lotteries and we have the legalization of marijuana, not because of cultural reasons, particularly, and not because of cultural changes particularly. We have that because our state governments are afraid to tax corporations and the rich because they will lose the money without which you cannot win electoral office in this country. And they've loaded up the mass of people with taxes because they didn't tax corporations and the rich. So, they dare not to raise taxes on them because then, they will lose the votes.

Caught between not wanting to lose votes and not wanting to lose the money they need to be politicians and to compete for the votes, they're desperate. That's why they borrow so much money and why Illinois, Puerto Rico have collapsed. Because they can't borrow anymore having borrowed too much already.

So, imagine how desperate they are. 'Can we find', they ask themselves, 'new ways of raising money that the mass of people will not be angry at us about, and that the corporations and the rich won't care because we're not taxing them'. Answer: yes. Part one of the answer, institute lotteries. Part two of the answer, legalize marijuana.

Those state governments can raise money from people who buy marijuana, but let's be clear: these are regressive taxes, both the lottery and the marijuana. The lottery for sure since all statistics show us that the poorer you are, the more likely you are to spend on a lottery ticket, and that's no surprise because the more desperate you are to engage the fantasy that you might become a millionaire tomorrow, if you buy the right lottery ticket.

With marijuana, it's a population that is so excited that it can finally do something legally that it has had to do illegally before, that they won't mind, at least for a while, being taxed.

These are taxes on people that make no effort to discriminate according to their ability to pay. Lotteries hit the poor more than the rich, and cost the poor a bigger share of their income than they cost the rich. And the tax on marijuana works pretty much the same way.

These are not progressive taxes. They make no effort like an income tax does, to tax you according to your ability to pay. They are escape hatches, ways for irresponsible Democrats and Republicans to get out of what they ought to be doing, which is taxing the wealthiest and the business community because they've been the ones to cut their taxes the most, everywhere over the last 30 to 40 years.

Comments

  1. Anonymous29/6/17 16:12

    You forgot about Oregon and Alaska

    ReplyDelete
  2. Anonymous29/6/17 18:42

    Corporate income taxes are a scam. They are hidden taxes on individuals and families.

    Workers pay corporate income taxes through lower wages.

    Consumers pay them through higher prices.

    Savers pay them through lower returns.

    Corporations are just ways of individuals to work together. They can't pay taxes anymore than a Golden Retriever can. It can be no other way.

    ReplyDelete
    Replies
    1. Great framing, but....

      "Corporations are people, my friend!" Mitt Romney, 2012

      Delete

Post a Comment

Popular posts from this blog

Capitalism & Genocide - Yanis Varoufakis Speech at the Gaza Tribunal, 23rd October 2025, Istanbul

Yanis Varoufakis   On 23rd October, Yanis Varoufakis testified in front of the Jury of Conscience in the context of the Gaza Tribunal. His speech focused on the economic forces underpinning the genocide of the Palestinian people. In particular, he spoke on the manner in which capitalist dynamics have historically fuelled the white settler colonial project and, more recently, how the accumulation of a new form of capital - which he calls cloud capital - has accelerated, deepened and amplified the economic forces powering and propelling the machinery of genocide. 

This Is Why Iran Will DEFEAT The United States & Israel!

The Jimmy Dore Show    

Trump's war in Iran crushes US working class, enriches cronies

The Grayzone   The Grayzone 's Max Blumenthal and Aaron Mate discuss how Trump's cronies are exploiting the Strait of Hormuz crisis he instigated to manipulate markets while US consumers feel the pain. 

Iran War Collapses U.S. Neoliberal Economy

Glenn Diesen   Yanis Varoufakis is an economist, the former Finance Minister of Greece, and the author of numerous bestselling books. Yanis Varoufakis discusses the historical mistake of attacking Iran (again). 

Saudi Arabia & Qatar caught Mossad agents planning false flag operations inside their soil to blame Iran

Tucker Carlson says Saudi Arabia & Qatar caught & arrested Israeli Mossad agents planning bombings in those countries. pic.twitter.com/6PUxWeUymu — Jackson Hinkle 🇺🇸 (@jacksonhinklle) March 3, 2026

A response to misinformation on Nicaragua: it was a coup, not a ‘massacre’

There is so much misinformation in mainstream corporate media about recent events in Nicaragua that it is a pity that Mary Ellsberg’s article for Pulse has added to it with a seemingly leftish critique. Ellsberg claims that recent articles, including from this website, often “ paint a picture of the crisis in Nicaragua that is dangerously misleading. ” Unfortunately, her own article does just that. It looks at the situation entirely from the perspective of those opposing Daniel Ortega’s government while whitewashing their malevolent behavior and downplaying the levels of US support they have relied on. Her piece is an incomplete depiction of what is happening on the ground, ignoring many salient facts that have come to light and which have been outdated by recent events. The following is a brief response to Ellsberg’s main points from someone who lives in Nicaragua and has observed the situation directly and intimately: https://grayzoneproject.com/2018/08/15/a-res...

Iran could be the US’s Boer war: a hollow victory that marks the beginning of the end of empire

US leaders anticipated a walkover. Now they’re embroiled in a conflict that could hasten the end of US economic dominance  by Larry Elliott   Nobody gave the Boers a prayer when the war in South Africa began in 1899. It was farmers ranged against the might of the British empire, and the expectation was that resistance would quickly crumble. Eventually, might did prevail. Britain won the Boer war, but it was a hollow victory that took the best part of three years to achieve and came at a high cost. The blow to British prestige – coming at a time when its global hegemony was under threat from fast-growing countries such as the US – was severe. Far from highlighting the extent of Britain’s power, it exposed its limitations. A century and a quarter later, the US risks being embroiled in its equivalent of the Boer war. What should have been a walkover threatens to become a prolonged conflict. The Iranians are using guerrilla tactics, just as the Boers did, with much success. There ...

US-Israeli attack on Iran expands into GLOBAL WAR: EU & UK join, Canada supports, Gulf regimes hit

Geopolitical Economy Report   The US-Israeli war on Iran is expanding into a global conflict. The European Union supports it. The UK is letting Trump use British bases. Germany and France are involved. Canada backs it. Tehran has retaliated, in self-defense, hitting US military bases in Gulf countries. Ben Norton explains. 

The dominant elite ready to break the "social contract"

Hyper-automation will allow the super-rich to “get rid” of the rest by system failure Since the French revolution and the new form of the urban states-democracies, the ruling class had to make the so-called "social contract" with the majority. From the moment that the dominant urban class took the power from feudalism and monarchy, should had to find a way to protect the means of production and the labor force. Therefore, the ethnic consciousness in each state served to bound the majority in order to shape national armies to protect the ruling class interests. In exchange, the ruling urban class had given the so-called social state, labor rights, etc., through the nation-state as a carrier and guarantor for all these benefits for the middle and lower classes. Since then, there have been a lot of battles and the majority managed to conquer some benefits. At the start of 20th century, the technology progress had brought the mass production. Western s...

Stephen Hawking confirms: The problem is Capitalism, not robots!

globinfo freexchange According to world famous physicist Stephen Hawking, the rising use of automated machines may mean the end of human rights – not just jobs. But he’s not talking about robots with artificial intelligence taking over the world, he’s talking about the current capitalist political system and its major players. On Reddit, Hawking said that the economic gap between the rich and the poor will continue to grow as more jobs are automated by machines, and the owners of said machines hoard them to create more wealth for themselves. The insatiable thirst for capitalist accumulation bestowed upon humans by years of lies and terrible economic policy has affected technology in such a way that one of its major goals has become to replace human jobs. If we do not take this warning seriously, we may face unfathomable corporate domination. If we let the same people who buy and sell our political system and resources maintain control of automated technology, the...