The Legalization of Marijuana in America: from an Economic Standpoint
The Legalization of Marijuana in America
From an Economic Standpoint
12/2/2012
ID: 1175376
Introduction
After the recent 2012 United States Presidential Election, whereupon Colorado and Washington passed the policy to legalize marijuana for “adult purposes,” government officials faced conflict as to whether to legalize the drug on a federal level or not (Smith 1). There is a battle between the Supreme Court and federal government regarding enforcement as state law allows production and consumption of the drug while the federal law prohibits such activities. When a state officer finds marijuana on the persons of a Colorado resident, there is no charge; however, when a federal officer finds marijuana on the persons of a Colorado resident the extent of the penalty could be arrest and incarceration. Due to conflicting enforcement policies, America is forced to examine the issue and come to a consensus between the policies to ensure homogeneity between the two lawmaking bodies.
One means of analyzing the issue is through an economic perspective. As economics is the study of “how society manages its scarce resources” and the manner in which a society makes decisions, the economics behind a controversial policy can help determine acceptance or rejection of the proposed law (Mankiw 1-1). Based on fundamental economic concepts, historical evidence, global data, and future forecasts, the effects of legalizing marijuana will be analyzed. After analyzing the economics of the legalization, a decision can be made.
Brief History of Cannabis
From the beginning of time, the Cannabis plant has been cultivated and exported around the world for its material, medicinal, and spiritual uses. The first recorded instance of the cannabis plant being valued in society was in 2900 BC when Emperor Fu His claimed it held the powers
1
of yin and yang (Historical 1). Egypt, Persia, and Greece, also cultivated the Cannabis plant for both physical and
From an Economic Standpoint
12/2/2012
ID: 1175376
Introduction
After the recent 2012 United States Presidential Election, whereupon Colorado and Washington passed the policy to legalize marijuana for “adult purposes,” government officials faced conflict as to whether to legalize the drug on a federal level or not (Smith 1). There is a battle between the Supreme Court and federal government regarding enforcement as state law allows production and consumption of the drug while the federal law prohibits such activities. When a state officer finds marijuana on the persons of a Colorado resident, there is no charge; however, when a federal officer finds marijuana on the persons of a Colorado resident the extent of the penalty could be arrest and incarceration. Due to conflicting enforcement policies, America is forced to examine the issue and come to a consensus between the policies to ensure homogeneity between the two lawmaking bodies.
One means of analyzing the issue is through an economic perspective. As economics is the study of “how society manages its scarce resources” and the manner in which a society makes decisions, the economics behind a controversial policy can help determine acceptance or rejection of the proposed law (Mankiw 1-1). Based on fundamental economic concepts, historical evidence, global data, and future forecasts, the effects of legalizing marijuana will be analyzed. After analyzing the economics of the legalization, a decision can be made.
Brief History of Cannabis
From the beginning of time, the Cannabis plant has been cultivated and exported around the world for its material, medicinal, and spiritual uses. The first recorded instance of the cannabis plant being valued in society was in 2900 BC when Emperor Fu His claimed it held the powers
1
of yin and yang (Historical 1). Egypt, Persia, and Greece, also cultivated the Cannabis plant for both physical and