The Effects Of Legalization Of Drugs On The Economy

Proponents on the legalization of drugs believe if drugs were to become legal; the black market worth billions of dollars would become extinct, drug gangsters would disappear, addicts would stop committing crimes to support their habit and the prison system would not be overwhelmed with a problem they cannot defeat. The decriminalization of drugs will only make illegal drugs cheaper, easier to get and more acceptable to use. “The U.S. has 20 million alcoholics and alcohol misusers, but only around 6 million illegal drug addicts. If illegal drugs were easier to obtain, this figure would rise”(Should Drugs be decriminalized? No.November 09, 2007 Califano Joseph A, Jr).”

The legalization of marijuana will lead to a boost to the economy. With the United States being trillions in debt, an increase in tax money would be a big help to lower the national debt. Colorado, one of the first states to legalize marijuana for recreational and medicinal uses, is showing valuable data of an increase in tax money, “In 2015, Colorado collected more than $135 million in taxes and fees on medicinal and recreational marijuana. Sales totaled over $996 million” (Krishna, Mrinalini). Now, Colorado is joined by seven other states, Washington, Oregon, California, Alaska, Maine, Massachusetts, and Nevada, in the full legalization of marijuana. With these states joining with Colorado, the United States is seeing sales “[grow] by 30%, to 6.1 billion, in 2016 and a projected 20.1 billion in 2021” (Krishna, Mrinalini). With that in mind, these sales are shared among only eight states, add another forty-two states and the rates could surpass the trillions. Considering the evidence, the act of not legalizing marijuana would be foolish.

“According to the Colorado Department of Revenue, the regulated marijuana market generated more than $156 million in state tax revenue and license fees in FY 2015-2016.” (The Impact of Legalization in Colorado,2017). The amount recognized in the quote was not including local taxes. The taxes generated from recreational marijuana use can be used for the state of Colorado to spend on many valuable things in the state. Such as schools, public transportation, or natural parks. This benefits the economy by creating more money for the state to spend and putting more money into circulation.

The article “Should Marijuana Use Be Legalized” states, “Supporters say regulating and taxing marijuana will bring in much-needed revenue to state coffers” (2015). In the state of Colorado, where the drug is now being sold for both medicinal and recreational use, tax revenue has shown a flourishing increase. A Denver Post article from October 2015 states, “Colorado racked up $700 million in sales of recreational and medical pot last year- nearly $76 million dollars in tax revenue, including $13 million dollars in licenses and fees. The industry is expected to top $1 billion dollars this year” (Bunch). The legalization of recreational marijuana in Colorado has had an enormous financial effect on the state. There has been an increase in sales of real estate and a boost in tourism for the state. While many opposed the recreational sale of the drug because of a fear of increased crime, traffic accidents, and teen use, there is no evidence to support an increase in any of these potential problems. While many citizens and politicians continue to oppose the legalization of marijuana in other states, it is proven that in Colorado, the recreational sale of marijuana is a profitable money-maker for the state.

In a study by New Frontier data, it is predicted that after the nationwide legalization of recreational marijuana, the marijuana industry will create around $132 billion in tax dollars in the next decade. In the 2017 fiscal year, the federal deficit was $666 billion dollars. Tax revenue from marijuana sales can lessen the deficit if legalized nationwide. Colorado is just one example of this – from January 2014 to May 2017, its tax revenue from marijuana exceeded $500 million. Colorado used the extra revenue mostly for K-12 education, but also for public health initiatives and infrastructure projects. Brian Vicente from the Vicente Sederberg Law Firm, which specializes in marijuana law, says “the impact is really felt at the local level. Some counties have done 20 years of infrastructure work in just one year's time,” he said. “They've provided lunch for kids who need it.” These things are crucial to Colorado’s well-being, but also stimulate the economy. In another state where recreational marijuana, Washington, the revenue from marijuana income and processing fees was $319 million in the 2017 fiscal year. In Washington, the excise tax is 37% for retail sales of marijuana. This high tax rate contributes to the substantial revenue from Washington’s marijuana industry. Washington uses $3 million of its revenue from recreational marijuana to fund substance abuse prevention programs and drug education. The

Drug abuse is all around the world. Many billions of dollars are wasted trying to prevent drugs in the United States. Drug legalization could reduce government costs and raise tax revenues. The government worries that people’s health is going to go wrong and more money would have to be wasted on health insurance. The effects of drug use on society, and suggests some solutions to the problem.

For years, the issue of legalization has been an increasingly controversial subject. Millions of dollars are spent annually in the War on Drugs causing many to wonder if this fight is cost-effective or if an alternative such as legalization would be more realistic than current efforts in drug prevention. Opponents state that with legalization would come an increase not only in availability, but also with everything associated with that availability. This includes suffering of users and their loved ones, death of users and innocent alike, increases in health-care costs, cost to employers, drug-related crimes, and increases in various other social, economic, and emotional

Colorado is a great example of the benefits of legalization and the profit to be made for recreational use. A mature marijuana industry could generate up to $28 billion in tax revenues for federal, state, and local governments. The U.S. market for legal, recreational, cannabis is projected to more than triple between 2016 and 2025, with medical marijuana sales jumping from $4.7 billion to $13.2 billion during that period. In 2016, medical marijuana sales accounted for 71 percent of the cannabis market, but that share is expected to decline to 55 percent as the number of recreational users grows (Mantel, 612). This type of money happening across the states could help put a dent in the National debt, help fund medical research, fund schools, and rehab

As shops for recreational and medical Marijuana open, more purchases of the product will be made which impacts the tax revenue. An example would be Colorado (a state that legalizes Marijuana) where “In 2015, Colorado collected more than $135 million in taxes and fee on medical and recreational marijuana” (Krishna, 2017). Arcview Market Research also predicts that “Sales in North America grew 30%, to $6.7 billion, in 2016, and is projected to increase to $20.1 billion by 2021”. The legalization of Marijuana will also provide many job opportunities since a variety of different jobs will be needed that relate to Marijuana. Investopedia.Com states “A RCG Economics and Marijuana Policy Group study on Nevada says that legalizing recreational marijuana in the state could support over 41,000 jobs till 2024 and generate over $1.7 billion in labor income. The ICF study estimates at least 81,000 additional direct, indirect, and induced jobs in California as a result of legalized marijuana sales. It also projects an increase in total labor income by at least $3.5 billion”. Another way legalizing Marijuana would impact the economy positively is that the government can save money spent on enforcing the law of Marijuana being illegal. Huffington post states “Inmates incarcerated on marijuana-related charges cost U.S. prisons $1 billion annually, according to a 2007 study, AlterNet reports.” and “The government would save an estimated $13.7 billion on prohibition enforcement costs and tax revenue by legalizing marijuana”.This low risk substance saves the economy a lot of money and support it

Legalizing marijuana has helped increase the USA income. Since the legalization there has been an "increase in total labor income by at least $3.5 billion," (The Economic Benefits of Legalizing Weed By Mrinalini Krishna). After the drug became legal Colorado collected over $135 million in fees and taxes on marijuana, both medical and recreational. 30% is how much sales grew, $6.7 billion, in 2016. "Sales in [Colorado] totaled over $996 million." (The Economic Benefits of Legalizing Weed By Mrinalini Krishna). Not only has income benefited the USA economy but it has also helped the workforce.

If marijuana is legalized it should be regulated and taxed similarly to alcohol and tobacco. As of now, marijuana is fully legal in Colorado, Oregon, Alaska, Washington State, and Washington D.C. According to a 2010 survey from Cato, “Legalizing marijuana would generate eight billion, eight billion, seven hundred million, dollars in federal and state revenue annually.” (Huffpost,2013). In 2014, Colorado legalized marijuana for recreational use, as of now Colorado marijuana industry is worth one billion dollars. Legalizing marijuana would benefit states by providing them with much-needed tax revenue. According to Colorado Department of Revenue, in the first two months, the state collected six million dollars in tax revenue. (CDOR,2015) According to Colorado Department of Revenue, in 2015, the state saw nine billion, nine hundred sixty-two million, dollars in sales of marijuana. Colorado collected more than one hundred thirty-five million, dollars in taxes from the marijuana sales in 2015. (CDOR,2016) Washington State plans to raise nearly two hundred million dollars in marijuana tax revenue and fees in the next four years. Colorado uses a portion of their marijuana tax revenue to fund their

The economic influx during the time that Colorado legalized and taxed marijuana is similar to the economic influx that occurred when Nevada legalized prostitution. According to the Drug Policy alliance, “Data released by the state Department of Revenue reveal that tax revenue from retail marijuana sales amounted to $40.9 million between January 2014 and October 2014, not including revenue from medical marijuana and licenses and fees” (“Marijuana Legalization in Colorado”). The economic effects of legalizing marijuana have positively benefited the state of Colorado. Colorado has the fastest growing economy in the U.S. currently, “According to the Department of Revenue, 16,000 people were licensed to work in the

This amendment took effect in January of 2014 and paved the way for a billion dollar a year legal marijuana industry to take root. This industry has aided the employment market by adding thousands of new jobs to the economy. The state is also benefiting from the tax revenue generated from the production, sale and purchase of marijuana. Both medical and recreational marijuana are subjected to standard state and local taxes, as well as the taxes generated from medical and retail licensing required by the state. In 2015 the Colorado Department of Revenue reported taxes collected through Marijuana Enforcement Activity at $23,995,775. This was an increase of over $20,000,00 compared to previous years when the taxes collected on marijuana were based mainly on medicinal sales.(Appendix A) These tax revenues are going towards improving schools, scholarships, and drug awareness and abuse prevention programs. Where many were expecting acceleration in crime due to the legalized use of marijuana Colorado actually reported a 2.5% decrease in crime between 2013 and 2014. (Appendix B,

Drug legalization is an enduring question that presently faces our scholars. This issue embraces two positions: drugs should not be legalized and drugs should be legalized. These two positions contain an array of angles that supports each issue. This brief of the issues enables one to consider the strengths and weakness of each argument, become aware of the grounds of disagreement and agreement and ultimately form an opinion based upon the positions stated within the articles. In the article “Against the Legalization of Drugs”, by James Q. Wilson, the current status of drugs is supported. Wilson believes if a drug such as heroin were legalized there would be no financial or medical reason to avoid heroin usage;

Drug abuse is a major public health issue that impacts society both directly and indirectly; every person, every community is somehow affected by drug abuse and addiction and this economic burden is not exclusive to those who use substance, it inevitably impacts those who don 't. Drugs impact our society in various ways including but not limited to lost earnings, health care expenditures, costs associated with crime, accidents, and deaths. The use of licit or illicit drugs long term, causes millions of deaths and costs billions for medical care and substance abuse rehabilitation and the effects of drug abuse extend beyond users, spilling over into the society at large, imposing increasing