Wisconsin’s Medical Marijuana Push: A Risky Step Toward Legalization

The debate over marijuana legalization never ends in Wisconsin, and now several Republicans are picking up the torch on the medical side of things. They’ve just proposed a bill that not only brings medical marijuana to the state but would also create a licensing program for growers and dispensaries. This is a clear first step towards recreational marijuana. Despite the supposed economic benefits, market distortions, public health costs, and clear social impact that would also come to Wisconsin in the wake of full-scale recreational legalization.

While legalization is an issue that is widely talked about, the reality is that marijuana legalization often leads to market regulation and heavy taxation for users statewide. The last round of attempts to legalize it in the last state budget would’ve included a 15% wholesale tax, a 10% retail tax, and a complex permitting system run by the Department of Revenue, as well as the Department of Agriculture, Trade, and Consumer Protection. This favors large corporations, most of whom are well-established, out-of-state growers and farmers, rather than Wisconsin-based firms. Moreover, the high compliance costs associated with licensing, security requirements, and environmental regulations increase operational expenses, driving up prices for consumers.

Legalization externalizes costs onto society. Increased accessibility drives higher use, especially among younger users. A review of 61 studies from 2016-2022 found that legalization can lead to cannabis use disorder and found that 5.1% of users within a legalized state fall into this disordered category. Chronic use is shown to ultimately impair cognition, reduce worker productivity, and can lead to an increase in impaired driving and crashes. Additionally, these studies also suggest marijuana use increases the risk of psychotic disorders, particularly among those with a family history of schizophrenia, with regular high-potency cannabis use elevating this risk fivefold.

If legalization were to occur, make no mistake that “Big Marijuana” would worm its way into Wisconsin policy and attempt to manipulate the market as it has across legalized states nationwide. In Wisconsin, where mental health resources are already strained, the increased burden on public and private healthcare systems would divert resources from other priorities, effectively subsidizing the consequences of individual choice. The commercialization of cannabis, as seen in states like Colorado and Washington, has also led to highly potent products with THC concentrations approaching 90%, far exceeding the less than 10% found in black market marijuana decades ago. This shift is driven by profit motives, as businesses innovate to create addictive, high-margin products like edibles and vapes. It’s working. Additionally, the promise of job creation is tempered by the reality that many jobs in the cannabis industry are low-wage, with high regulatory compliance costs limiting profitability for small businesses. Legalization could also ultimately deter business in Wisconsin’s key industries, such as healthcare, that prioritize drug-free workplaces.

While legalization proponents argue that passing a bill could generate over $100 million in annual tax revenue, black-market activity in legal states persists and often offsets these gains, as seen in Michigan. In states like this, purported financial benefits are discussed ad nauseam, with any negative impacts conveniently buried. A 2023 Federal Reserve of Kansas City report notes that economic benefits in legal states are broadly distributed, but costs—like addiction and crime—disproportionately harm low-income communities. This disparity violates the principle of equitable cost-bearing. Tax revenues may fund government programs, but they do not directly compensate those harmed by increased cannabis use, such as families affected by addiction or employers facing reduced productivity.

While the bill offers a structured approach to medical access with safeguards against abuse, its potential to normalize cannabis use outweighs the benefits, particularly given evidence of youth vulnerability, health risks, and enforcement challenges. Legalization, even medical, risks increased adolescent exposure—as seen in states with similar programs where use and impairments rose—serving as a gateway to harder substances and straining public safety. Maintaining prohibition protects youth development, reduces societal costs, and avoids unintended escalations in dependency and crime, making anti-legalization the prudent stance.