When We Roll Back the Rules

Marijuana and sports gambling tell a story about American politics. Twenty years ago, both were largely illegal. Now, most people can partake in them legally.

Americans have embraced social libertarianism — the view that emphasizes individual freedom — in the last two decades. The Supreme Court legalized same-sex marriage. States relaxed laws for carrying a concealed gun, approved more exemptions for vaccine mandates, reduced penalties for nonviolent crimes and legalized psychedelics. Some places stopped enforcing laws against sex work and homeless encampments. (The shift isn’t uniform. Some states, for example, restricted abortion.)

What happened next?

The story is mixed. Libertarianism gives people the freedom to make their own choices, which works well when the choices produce few or no meaningful harms (like a gay couple’s decision to marry). But libertarianism also lets people make harmful choices that ripple across society. An addiction to drugs or gambling can hurt families, the economy and the health care system.

Today’s newsletter will use the examples of marijuana and sports betting to examine what has gone wrong.

Real downsides

Supporters of legalization often frame it as a win-win. People were gambling and smoking pot anyway, the argument goes. Legalization merely takes these activities out of the shadows, stopping harmful, unnecessary arrests for victimless crimes. Governments can tax businesses that profit from them and regulate behaviors to prevent abuses.

But the win-win argument ignores an important reality: Legalization of a behavior often makes it, and its harms, more common.