Economics effects of legalization of marijuana
A majority of those who support the legalization of marijuana hold that it should be removed from the criminal justice system. They argue that it should be regulated in a way similar to that of tobacco and alcohol. They hold that legalizing and controlling the drug will bring it under the rule of law, therefore, resulting in the creation of economic and job opportunities in the formal economy rather than that of the illegal or illicit market (Caulkins, 2013). In addition, limited resources of law enforcement that could be appropriately utilized in protecting the safety of the public would be conserved and costs related to court and corrections could be minimized. Also, local and state governments would obtain important new tax revenue sources from legalizing and regulating marijuana sales. The criminalization of marijuana use excessively harms people especially the youth and encourages high degrees of corruption and violence (Caulkins, 2013). This paper focuses on explaining the economic benefits of legalization of marijuana.
There are associations and alliances aimed at advocating the legalization of marijuana through a proper-controlled market for the production and distribution of marijuana. One of these alliances is The Drug policy Alliance (DPA). The Alliance seeks to endorse change on the federal and state level through continual legislative attempts and other initiatives (Caulkins, 2013). This alliance assisted in the 2010 historic campaign, in support of the Proposition 19 in the state of California. Washington and Colorado were the first states in the U.S, as well as, the first political jurisdictions across the world to endorse measures on legalizing and controlling marijuana, in 2012 (Caulkins, 2013). The legalizing and regulating measures were similar to those of alcohol. The Alliance worked with national and regional allies to outline the initiatives, raise funds, and create coalitions. It is expected that the Alliance will play the same role in other campaigns, in the future. DPA is involved in creating an exceptional coalition that involves civil rights groups, law enforcement, parents, and organized labor. In addition, it seeks to create support across the nation for eliminating prevention by playing a significant function in sustaining the state discussion on the legalization of marijuana, and acting as a countrywide thought leader for practical options to prevention policies that have failed (Yoruk & Yoruk, 2011). Its staff gives advice to elected and appointed officials, advocates, and regulators on alternatives that are available, as well as, their effects for local and state governments. DPA strongly involves the media in ensuring sound and accurate information distribution on the harms of prevention and the advantages of feasible options.
The economic benefits associated with the legalization of marijuana are of significant benefits to the entire society. For instance, the benefits associated with the use of hemp, which are denied, will be allowed through the legalization of the drug. Hemp can be made into plastics, paper, clothing, paneling, and other products, which can be traded in the market to improve a country’s economy (Yoruk & Yoruk, 2011). The nutritious seeds can be used to make cattle feed, cooking oil, and flour, which means that, the cost people incur to purchase such items are reduced. In addition, people can make these items for commercial purposes to earn a living. Hemp is an environmentally friendly plant that grows without any herbicides and gives extremely high yields. Also, the plant nourishes the soil and matures first (Yoruk & Yoruk, 2011). It is the leading producer of biomass in the globe, and, therefore, could be a perfect crop of producing fuel for a country. This could boost the earnings of American farmers. In addition, it may reduce the reliance of the country on fossil fuels that bring the issue of global warming or climate change.
The prevention of marijuana diverts billions of dollars from the needy. Social programs such as food stamps are being eliminated whereas a lot of funds are spent in the attempt to stop people especially the youth from using the drug (Cohen, 2004). These funds could be utilized in other social programs to improve the society’s welfare. Prevention is evidently counterproductive. The legalization and control of marijuana means that it will be taxed; thus more revenues for the government will be generated. It is evident that items such as alcohol and tobacco are taxed heavily in order to discourage its use. However, people do not stop consuming such products (Warf, 2005). The local and state governments, therefore, should consider the legalization of marijuana as a form of increasing its revenue collections in the state. The criminalization of marijuana does not have moral rationale (Cohen, 2004). A real crime means a victim and the crime’s perpetrator. This is similar to being jailed for robbing oneself. Of course, this sounds insane, and the state and local government have made the consumption of marijuana a crime. Research suggests that marijuana is an effective medicine. Evidence suggests that the drug can effectively and safely relieve nausea, pain, and nausea caused by various diseases. This could reduce the costs of acquiring such medicine. For instance, Canada approved the use of marijuana basing on the health benefits associated with the drug (Hankivsky, Varcoe, & Morrow, 2007).
The legalization of marijuana provides a vital benefit over its decriminalization because it allows for the lawful taxation and distribution if marijuana. Legal marijuana’s free market price would be exceptionally low, in the absence of taxation. If marijuana is legalized, an excise tax could be imposed on the drug’s commercial sales (Caulkins, 2013). As a majority of lawmakers across the U.S. struggle to establish ways of balancing the state budget, an important revenue source may just be burning before them. The state and federal legalization and control of marijuana would provide a large stream of new revenue. The size of the market for marijuana may not be certain, and there is also uncertainty on what will happen when the demand and price under distinct legalization levels (Yoruk & Yoruk, 2011). However, it is clear that legalization would result in a positive impact on revenue on sales tax and income side.
Marijuana legalization would produce revenues that could be used for the country’s development. This is possible when an assumption is made that marijuana will be taxed similarly to tobacco and alcohol. Another assumption made is that the income received by producers of marijuana would be taxed as sales and income tax (Yoruk & Yoruk, 2011). It is important to note that taxes are not the only revenue source from the legalization of weed. The local and state governments could save a lot of finances that they presently use in regulating the use of marijuana. Appropriate examples to explain this case is looking at the two states that have legalized marijuana use, Colorado and Washington. About 18 nations have made the use of marijuana for medical reasons legal and other 10 are presently considering the process of legalizing marijuana. However, opponents of marijuana legalization hold that the social impact (crime, social disintegration, and violence) outweigh the economic advantages (Caulkins, 2013). But, a majority of people support the legalization of marijuana.
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References
Cohen, S. (2004). Legalization of Marijuana: Potential Impact on Youth. Pediatrics, 113(6), 1825-1826.
Hankivsky, O., Varcoe, C., & Morrow, M. H. (2007). Women’s health in Canada: Critical perspectives on theory and policy. Toronto: University of Toronto Press.
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