Economic Effects Of Legalizing Marijuana
Economic Effects of Marijuana Legalization Nationally:
Beneficial or Detrimental?
Denzel J. Frazier
ABSTRACT
Economic Effects of Marijuana Legalization Nationally:
Beneficial or Detrimental?
If I told you that the antidote for the astonishing United States federal debt estimated to trickle right under twenty trillion dollars. Conspiracy? No such. This substance has crept from the grasp of hippie hopefuls as well as the hip hop underworld and has landed on the desk of politicians across the United States. The not-so touchy, yet touchy subject would create a nest of economic prosperity that could go to deplete the monetary anxieties that the United States …show more content…
has.
Similar to the prohibition of alcohol in the 1920s, the topic of marijuana is one that is frowned upon. Hemp’s origin dates to the times of our earliest presidents. Its early use may not have been the modernized rolling papers, but extracts and elixirs with medicinal intent. Yet, time goes to show how it would create such an uproar in the political realm. The consumption of marijuana exploded in the 1950s, causing a rise in convictions related to the drug. Initiating from its popularity, included the enforcing of strict and harsh laws. The legality of cannabis was a mere dream. Pot arrests rose from 18,000 in 1965 to 188,000 in 1970. Marijuana legalization made its way to a ballot was in California, by way of proposition 19, which was rejected by voters. The race to regulated marijuana began.
Statewide robust regulation kicked off in the areas of Colorado and Washington state. For the first time, recreational pot was available for purchase on US soil. Four states and the District of Columbia have legalized the sale of retail marijuana by popular vote. In those states that have fully legalized marijuana, revenue collections have exceeded initial estimates. Colorado projected $70 million in marijuana tax collections per year, and after a slow initial start, state collections will likely exceed $140 million in calendar year 2016. In Washington, sales are now averaging over $2 million a day with marijuana expanding into beverages, edibles, lotions etc. If all states legalized and taxed marijuana, states could collectively expect to raise between $5 billion and $18 billion per year. These figures go to show just show effective it would be if all states were under a federal compliance.
Creating wealth isn’t just as easy as printing money.
From an economic standpoint, production is the key to eliminating debt. In 2015, the legal marijuana industry in Colorado created more than 18,000 new full-time jobs and generated $2.4 billion in economic activity, according to a first-of-its-kind analysis of the economics of legal cannabis in the state. The study, conducted by the economic consulting firm Marijuana Policy Group, is based on two years of sales numbers from the state of Colorado. It measured both the direct effects of legalization including close to $1 billion in retail sales in 2015 and the industry's spillover effects on the Colorado economy. These indirect impacts of marijuana legalization came from increased demand on local goods and services: growers rent warehouse space and purchase sophisticating lighting and irrigation equipment, for instance. Marijuana retailers similarly rely on other companies, like contractors, lawyers and book-keeping services, to conduct their own …show more content…
businesses.
"If this is done right, regulated right, taxed right, this industry can bring real economic benefits to a state”, study co-author and MPG founder Adam Orens said in an interview. "If the state or the local governments manage, permit and enforce marijuana regulation in a thoughtful way, then this can have real benefits.” More US territories are accepting the fact that marijuana is socially accepted and it is showing up at the polls. Even though already legal for medicinal purposes, Illinois voters are giving the green light to remove criminal penalties for marijuana or legalize the drug for recreational use. A recent Paul Simon Public Policy Institute poll found that 74 percent of registered voters surveyed favored imposing fines on those caught with small amounts of the drug rather than criminal prosecution. Two-thirds of those same survey responders supported legalizing and taxing marijuana. Interim Director of the Paul Simon Public Policy Institute Jak Tichenor stated that “Illinois voters are becoming more comfortable with decriminalization,” adding that there is now evidence showing most see it as a potential revenue source for the state."
Federal
REFERENCES
Bricken, H.
(2016, May 19). High Dive : Are we creating "Big Marijuana" TEDxOrcasIsland. Retrieved April 02, 2017, from https://www.youtube.com/watch?v=0M4Fse1Ioaw
Caulkins, J. P. (2012). Marijuana Legalization: What Everyone Needs to Know. New York, NY:
Oxford University Press.
Ekins, G., & Henchman, J. (2016, March 12). Marijuana Tax Legalization and Federal Revenue.
Retrieved April 08, 2017, from https://taxfoundation.org/marijuana-tax-legalization-federal-revenue/
Gerber, R. J. (2004). Legalizing Marijuana: Drug Policy Reform and Prohibition Politics.
Westport (Conn.): Praeger.
Hajizadeh, M. (2016). Legalizing and Regulating Marijuana in Canada: Review of Potential
Economic, Social, and Health Impacts. International Journal of Health Policy and Management, 5(8), 453-456. doi:10.15171/ijhpm.2016.63
Holowach, J. (Director). (2008). High: The True Tale of American [Motion picture on DVD]. United States: Terra Entertainment.
Ingraham, C. (2016, October 28). Legal Marijuana Created More Than 18,000 Jobs in Colorado
Last Year. Charleston Gazette. Retrieved April 8, 2017.
Lukitsch, B. (2017, March 28). Public Finds Most Illinois Voters Davor Marijuana
Decriminalization, Legalization. UWIRE text, p. P.1. Retrieved April 8,
2017.
Pyke, A. (2016, October 28). Marijuana's $2.4 billion impact in Colorado is a lesson for 5 states considering legalization. Retrieved April 08, 2017, from https://thinkprogress.org/5-states-weighing-marijuana-legalization-would-reap-enormous-economic-benefits-study-suggests-cb06831d154b
Schepp, D. (2016, March 18). Legal marijuana: A $44 billion business by 2020? Retrieved April
08, 2017, from http://www.cbsnews.com/news/legal-marijuana-a-44-billion-business-by-2020/
Beneficial or Detrimental?
Denzel J. Frazier
ABSTRACT
Economic Effects of Marijuana Legalization Nationally:
Beneficial or Detrimental?
If I told you that the antidote for the astonishing United States federal debt estimated to trickle right under twenty trillion dollars. Conspiracy? No such. This substance has crept from the grasp of hippie hopefuls as well as the hip hop underworld and has landed on the desk of politicians across the United States. The not-so touchy, yet touchy subject would create a nest of economic prosperity that could go to deplete the monetary anxieties that the United States …show more content…
has.
Similar to the prohibition of alcohol in the 1920s, the topic of marijuana is one that is frowned upon. Hemp’s origin dates to the times of our earliest presidents. Its early use may not have been the modernized rolling papers, but extracts and elixirs with medicinal intent. Yet, time goes to show how it would create such an uproar in the political realm. The consumption of marijuana exploded in the 1950s, causing a rise in convictions related to the drug. Initiating from its popularity, included the enforcing of strict and harsh laws. The legality of cannabis was a mere dream. Pot arrests rose from 18,000 in 1965 to 188,000 in 1970. Marijuana legalization made its way to a ballot was in California, by way of proposition 19, which was rejected by voters. The race to regulated marijuana began.
Statewide robust regulation kicked off in the areas of Colorado and Washington state. For the first time, recreational pot was available for purchase on US soil. Four states and the District of Columbia have legalized the sale of retail marijuana by popular vote. In those states that have fully legalized marijuana, revenue collections have exceeded initial estimates. Colorado projected $70 million in marijuana tax collections per year, and after a slow initial start, state collections will likely exceed $140 million in calendar year 2016. In Washington, sales are now averaging over $2 million a day with marijuana expanding into beverages, edibles, lotions etc. If all states legalized and taxed marijuana, states could collectively expect to raise between $5 billion and $18 billion per year. These figures go to show just show effective it would be if all states were under a federal compliance.
Creating wealth isn’t just as easy as printing money.
From an economic standpoint, production is the key to eliminating debt. In 2015, the legal marijuana industry in Colorado created more than 18,000 new full-time jobs and generated $2.4 billion in economic activity, according to a first-of-its-kind analysis of the economics of legal cannabis in the state. The study, conducted by the economic consulting firm Marijuana Policy Group, is based on two years of sales numbers from the state of Colorado. It measured both the direct effects of legalization including close to $1 billion in retail sales in 2015 and the industry's spillover effects on the Colorado economy. These indirect impacts of marijuana legalization came from increased demand on local goods and services: growers rent warehouse space and purchase sophisticating lighting and irrigation equipment, for instance. Marijuana retailers similarly rely on other companies, like contractors, lawyers and book-keeping services, to conduct their own …show more content…
businesses.
"If this is done right, regulated right, taxed right, this industry can bring real economic benefits to a state”, study co-author and MPG founder Adam Orens said in an interview. "If the state or the local governments manage, permit and enforce marijuana regulation in a thoughtful way, then this can have real benefits.” More US territories are accepting the fact that marijuana is socially accepted and it is showing up at the polls. Even though already legal for medicinal purposes, Illinois voters are giving the green light to remove criminal penalties for marijuana or legalize the drug for recreational use. A recent Paul Simon Public Policy Institute poll found that 74 percent of registered voters surveyed favored imposing fines on those caught with small amounts of the drug rather than criminal prosecution. Two-thirds of those same survey responders supported legalizing and taxing marijuana. Interim Director of the Paul Simon Public Policy Institute Jak Tichenor stated that “Illinois voters are becoming more comfortable with decriminalization,” adding that there is now evidence showing most see it as a potential revenue source for the state."
Federal
REFERENCES
Bricken, H.
(2016, May 19). High Dive : Are we creating "Big Marijuana" TEDxOrcasIsland. Retrieved April 02, 2017, from https://www.youtube.com/watch?v=0M4Fse1Ioaw
Caulkins, J. P. (2012). Marijuana Legalization: What Everyone Needs to Know. New York, NY:
Oxford University Press.
Ekins, G., & Henchman, J. (2016, March 12). Marijuana Tax Legalization and Federal Revenue.
Retrieved April 08, 2017, from https://taxfoundation.org/marijuana-tax-legalization-federal-revenue/
Gerber, R. J. (2004). Legalizing Marijuana: Drug Policy Reform and Prohibition Politics.
Westport (Conn.): Praeger.
Hajizadeh, M. (2016). Legalizing and Regulating Marijuana in Canada: Review of Potential
Economic, Social, and Health Impacts. International Journal of Health Policy and Management, 5(8), 453-456. doi:10.15171/ijhpm.2016.63
Holowach, J. (Director). (2008). High: The True Tale of American [Motion picture on DVD]. United States: Terra Entertainment.
Ingraham, C. (2016, October 28). Legal Marijuana Created More Than 18,000 Jobs in Colorado
Last Year. Charleston Gazette. Retrieved April 8, 2017.
Lukitsch, B. (2017, March 28). Public Finds Most Illinois Voters Davor Marijuana
Decriminalization, Legalization. UWIRE text, p. P.1. Retrieved April 8,
2017.
Pyke, A. (2016, October 28). Marijuana's $2.4 billion impact in Colorado is a lesson for 5 states considering legalization. Retrieved April 08, 2017, from https://thinkprogress.org/5-states-weighing-marijuana-legalization-would-reap-enormous-economic-benefits-study-suggests-cb06831d154b
Schepp, D. (2016, March 18). Legal marijuana: A $44 billion business by 2020? Retrieved April
08, 2017, from http://www.cbsnews.com/news/legal-marijuana-a-44-billion-business-by-2020/