Legalization of marijuana. How can it boost the U.S economy - Research Paper Example

 Legalization of Marijuana; How Can It Boost the U.S Economy? Introduction In the United States the cultivation, possession, transportation and sale of marijuana had been illegal until recently when economists, legislators and, started the push for legalization of the stuff claiming that legalizing it will be more beneficial than criminalizing it (Martel 90). The proponents argue that the marijuana is harmless and non-addictive than alcohol and other legalized drugs; the government can reduce expenses and increase revenue by decriminalizing the drug. They further argue that the government’s efforts to combat use of drugs has always failed thus it is pointless to continue criminalizing marijuana (Morgan 112). This document examines various ways in which legalization of marijuana will contribute to economic growth in the United States. Marijuana Legalization and Economic Growth Legalizing marijuana will increase the government tax revenue. The government loses huge revenue from the illegal trade and use of marijuana. Marijuana is the most consumed and most traded substance of abuse in the US (Morgan 112). Whether legal or illegal consumers must always find a way of getting it and traders have to smuggle it in the country through the black market. The implication of illegal trading of marijuana is the huge loss of revenue the government could raise through taxation (Ruschmann 102). Therefore, legalizing marijuana gives the government a chance to regulate it through taxation hence increase of national income (Martel 90). For example, the state of Colorado estimated a revenue increase of about $67 million from marijuana sales the first year after legalization. Increase in national revenue will contribute to economic growth because the additional revenue can be used to carry out development activities of the government (Ruschmann 104). Legalizing marijuana will increase employment because many people can open up businesses as traders, farmers, distributors, etc. (Lee 14). Increase in employment opportunities in the country is a contributing factor to economic growth through income they earn. Increase in citizens’ income results to increase consumption hence increase in economic growth (Brinkerhoff, Ortega & Weitz, 139). The U.S. government incurs huge expenses to the tune of $40 billion to enforce drug regulations every year (Lee 23). Most of the inmates causing congestion in the U.S. prisons are victims of drugs that have not been involved in any crime of violence. Therefore, the government can save huge expenses spent on enforcement law on drug users to fund other national activities for economic growth such as education, health, etc., (Brinkerhoff, Ortega & Weitz, 147). History of decriminalization of Marijuana Marijuana was used for medical and recreational purpose for several years in the United States (Morgan 112). However, the Pure Food and Drug Act enacted in 1906 required special labeling of drugs including marijuana resulting to prohibition of marijuana. The regulations were enacted following intensive propaganda to label marijuana as a poison and by mid-1930s all the states had fully succeeded in criminalizing marijuana. The establishment of Marijuana Tax Act in 1937 prohibited the possession and conveyance of marijuana in the United States through imposition of heavy tax (Brinkerhoff, Ortega & Weitz, 162). In 1970s, the states started to get rid of regulations criminalizing use of marijuana. The decision was against the federal laws that categorized marijuana under schedule 1 drug in accordance with Controlled State Narcotic Drug Act of 1970s (Martel 115). Schedule 1 drugs are considered potential for abuse, not for medical use, and they are unsafe for use without medical directives. The mounting pressure from the individuals recommends taking of marijuana for medical reasons, economists, legislators and policy makers compelled the state to reduce prohibitions on the use of marijuana and allowed the states to control use of the drug in their respective states. Currently, various states have either legalized or considering lifting the prohibitions on marijuana use (Lee 47). Dates and Events Associated with Legalization of Marijuana The struggle to legalize medical marijuana started in 1978 when Robert Randall brought a claim before the court against the federal state for arresting after he was found taking medical marijuana to cure glaucoma (Martel 90). The judge requested Food and Drug Administration enactment of the program to enable the growing of marijuana at the University of Mississippi farm to supply medical marijuana to the patients. In1990s the state started allowing the sale of marijuana for medical reasons. Various states have allowed the use of marijuana for recreation and medical use over time with "Colorado and Washington being the first states" to adopt legalization policy in 2012 (Lee 174). Legislation associated with legalization of marijuana Respect State Marijuana Laws Act (aims at reforming drug policy), No Welfare for Weed Act of 2014, Medicinal Cannabis Act of 2011 (the policy was aims at prohibiting welfare credit cards users it in states where they have been legalized), Medicinal Cannabis Act of 2011, Ending Federal Marijuana Prohibition Act (aims at legalizing marijuana at federal level and encouraging controls similar to those of alcohol), Kansas 2010 Medical Marijuana Act, Regulate, Control and Tax Cannabis Act of 2010 (RCTCA) (Dubard 17). Legislators Various legislators such as Dana Rohrabacher (the sponsor of Respect State Marijuana Laws Act), Jared Polis (the sponsor of the Ending Federal Marijuana Prohibition Act), Sen. Phil Boyle, Senate’s Republican leader and Dean Skelos among others support the marijuana legalization (Lee 213). Interest groups and their Involvement In the United States, the various interest groups made different contributions on legalization of marijuana. The advocates for legalization include Marijuana Policy Project, Law Enforcement Against Probation, the Coalition for Rescheduling Cannabis, Students for Sensible Drug Policy, Americas for Safe access and The Drug Policy Alliance. Others are economists such as Milton Friedman and Jeffrey Alan Miron and Ron Paul (Texas Congressman 2008) among others (Ruschmann 89). Impact of data and research A study on effects of legalizing marijuana establishes the likelihood of the increase in consumption rate of marijuana (Morgan 112). For example, "in the state of Colorado the number of consumers is anticipated to be about 665,000 people" without considering black market consumers. That will translate into about 2.3 million ounces of marijuana consumed in the year 2014. Therefore, legalizing of marijuana will intensify the effects as more people consume of stuff (Ruschmann 85). The main intention of legalizing marijuana was to increase national revenue from the tax levies. The state of Colorado proposed a 32.9% tax as exercise and sales tax on legal marijuana (Ruschmann 78). With anticipated total sales of about $605 million, “the state is likely to raise about $130 million and that may not be able to cover the cost of legalizing the drug”(Stimson 11). However, imposing higher taxes will result to the black market and further decline in revenue for the states Social, economic impact The legalization of marijuana has both negative and positive economic and social impact the states and the users (Dubard 23). It is expected to increase states revenue from sales and exercise tax levied on marijuana and reduce expenses the state incur in enforcing anti-marijuana regulations. However, the cost of legalizing it may be higher than the anticipated benefits. Furthermore, imposition of heavy tax as planned by the state may divert the product into the black market thus the state may end up losing the anticipated revenue. As for the individuals, availability of the drug will result to decrease in family income as more of the family resources are wasted in drugs (Stimson 4). That may increase poverty in the America. Legalizing marijuana is likely to result to increase in consumption, and more people will become addicted. Addiction may interrupt social order in the society because the users of marijuana may not function normally (Dubard 26). There is a possibility of the rise in violent crimes, money laundering, increased road accidents, etc. Due to wasted family resources and the addiction to the users of marijuana the issues of domestic violence are likely to increase. Legalizing marijuana may have health consequences on more people since marijuana is associated with heart disorders, cancer, etc., (Stimson 7). The proponents argue that legalizing marijuana will give the states a chance to regulate its production and use thus minimizing harmful effects it has on the users. Conclusion Legalization of marijuana will increase states revenue from tax levies and enable the state to impose control on production and consumption. The government will be able to minimize cost of regulation of drugs and use the same on economic activities such as rebuilding of schools and hospitals. However, legalizing marijuana may have a negative impact due to the high cost of regulation than revenue and adverse social effects on the users. Works Cited Brinkerhoff, David; Ortega, Suzanne & Weitz, Rose, “Essentials of Sociology,” Ninth edition. (Cengage Learning, 2013): 130-197. Dubard, Iras, “A Manifesto on the Constitution, Social Contract, and Certain Inalienable Rights.” (Xlibris Corporation; USA, 2011): 16-28. Lee, Martin, A., “Smoke Signals: A Social History of Marijuana - Medical, Recreational and Scientific. (Simon and Schuster; New York, 2012): 1-528. Martel, Marcel, “Not this Time: Canadians, Public Policy, and the Marijuana Question, 1961- 1975.” (University of Toronto Press, 2006): 88-157. Morgan, Kayla, “Legalizing Marijuana.” (ABDO; USA, 2010): 112 Ruschmann, Paul, “Legalizing Marijuana.” (Infobase Publishing; USA, 2009): 72-130. Stimson, Charles, “Legalizing Marijuana: Why Citizens Should Just Say No Legal Memorandum No 56.” (The Heritage Foundation, 2010): 1-13. Retrieved from Read More