Economics of Legalized Marijuana in Amsterdam

963 WordsMay 8, 20054 Pages
Economics of Legalized Marijuana in Amsterdam 1. What resources are involved in legalized soft drugs in Amsterdam? There are many resources involved in the market of soft drugs. Whether it be human resources or the plants itself. The use of cannabis products has been legalized ; every town has at least one "hash and coffee shop", and the possession of less than 30 grams is not prosecuted by the police. In spite of the liberalization of the use of soft drugs, trafficking in cannabis products is still forbidden. Which has a great rise in the demand of better foreign plants that people desire hence raising the cost of the desired plant. Besides the possession of hash, the possession by addicts of hard drugs (an amount less than ½…show more content…
3. What future economic gains or loses may result from the current sales of soft drugs. The economic gains are plentiful as I stated before the sales of marijuana is upwards $500 million annually. The taxes gained by legalized soft drug use is comparable to cigarette sales and alcoholic beer sales tax. This is national and local revenue that usually would be lost do to laws outlawing the sales. Also the lack of law enforcement and jail space frees up billions of dollars that would otherwise have been used to find, charge, and incarcerate marijuana dealers and users. The only economic loses I can see in legalized soft drugs is the healthcare and rehabilitation part of it. But many times there is no need for this since there is no addictive nature to marijuana unlike cigarettes or hereditary addiction to alcohol. There is a need for rehab to the hard drug users which is not legal in Holland but many times tolerated. Legal marijuana use also saves the users hundreds of dollars maybe even thousands a year. Since the cost of it is lowered due to it being taken off the black market and regulated it is less expensive to purchase. Also the punishment for possession is taken away hence no jail time and lost wages or fines that could drain a persons income. The gains from legalized marijuana are enormous and

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