Positive Economic Effects of Legalizing Marijuana - Essay Example

The marijuana illegal income in the United States of America is valued at between 20 billion dollars and 40 billion dollars (Abadinsky 75). This is a lot of money, but since using and selling of marijuana in the state is illegal, the drug dealers fail to disclose their income thus they do not file tax returns due to fear of being arrested. If the state would legalize marijuana, then it would be able to collect revenue from drug dealers hence improving the economy of the state.

            The war on drugs is very expensive. For example, it is estimated that over the years the war on drugs has cost both federal and state governments close to one trillion dollars, (Benavie, 54). That is close to twenty billion per state. This is a lot of money that can be used for other things such as investing in infrastructure. If the state of Arizona's government would legalize marijuana then it would save a significant amount of the taxpayer’s money putting it to other uses such as the development of the state.

            A lot of people end up in jail as a result of using, selling, or having marijuana. Most of these people are typically below the age of 40 years (Benavie 39). When in jail, these people are economically useless to the state and their society. If the drug would be legalized in the state, these people who get arrested and jailed for either using or distributing would be free thus providing a good workforce to the state since they are young and energetic people. This will improve the infrastructure of the state as the young men will be employed by the state and development companies. Legalizing marijuana will also increase the state's revenue since the government will tax the income of these people.

            Legalizing marijuana will turn its market into a perfect competition market, where there will be no barriers to entering or leaving the market. This will replace the monopolies set up by gangs who solely control the sale of marijuana. Hence, legalizing marijuana will decrease poverty in the state since people will be able to sell the drug which is used by a lot of people thus earning a living