Introduction
Marijuana itself, as well as cannabis-based drugs, has a different legal status in various countries, which causes numerous disputes among those who advocate and those who accuse cannabis. The goal of this paper is to investigate the consequences of the complete prohibition and full or partial marijuana legalization for the economy. According to the experience of Canada, some European countries, as well as some US states (Colorado, Washington, Oregon, Alaska, etc.), the significant tax income and reduction or total elimination of cannabis black markets can be predicted. Thus, the purpose of this paper is to discuss the pros and cons of marijuana legalization in the context of the United States with the focus on its effects on macroeconomics.
Background of the Marijuana Legalization Problem
Marijuana has been well known around the world for its medical characteristics and pain-relief qualities for thousands of years. Nevertheless, Marijuana Tax Act prohibited it in the US since 1937. In addition, the Uniform Narcotic Drug Act claimed cannabis as a drug. Nowadays, limited marijuana usage is possible in the Netherlands, Canada, Spain, Portugal, Georgia, Austria, and in some districts of Copenhagen. Cannabis has full legalization in Uruguay and the government has established monopoly in this market (Caulkins et al. 23). That is why US can easily adopt foreign experience and avoid mistakes, which were made by those countries.
Legalization of Marijuana from Different Points of View
The main disputes around cannabis are about the influence of the drug on the humans’ health. Although, medical marijuana is helpful in case of multiple sclerosis, glaucoma, muscle spasms, it can also cause oncology, addiction and suicide behavior. (Chadi et al. 93). Nevertheless, it is hard to make full-scale research due to the necessity to make experiments on people. Arguments against marijuana concern that marijuana is a “gateway” drug and can increase the growth of the illegal drug usage. However, this status of cannabis can be easily explained. Researchers state that “Dealers prefer to sell powdered drugs as they are easier to conceal and have more profit, so they encourage cannabis users to try them” (Copeland et al. 21). However, this problem is barely will emerge, if the government takes control over the marijuana market.
From the macroeconomic perspective, marijuana is in demand. The Congressional Research Service predicts that legalization will generate $6.8 billion dollars tax income. In Nevada after the cannabis legalization law came into force in July 2017, the state government had to announce the statement of emergency for creating the marijuana legal market network. The National Cannabis Industry Association states, that tax income for the first four days after legalization was $1 million. Colorado generated $172 million in 2016 alone and Washington collected more than $257 million taxes in 2017.
The Federal Government’s Steps
First, the implementation of the legal marijuana market should not bring additional expenses for taxpayers. According to Richter and Levy, “In theory, any revenues from sales of marijuana products should pay for all regulation and harms so that society will not have to pick up the tab for damage done by the product (401). However, many US states and countries have already legalized marijuana, the control system over its circulation still is not invented and it should be one of the tasks for the government.
Conclusion
Marijuana legalization in the United States has its pros and cons. The tax income can generate more than 6 billions of dollars for the state budget. Also new working positions can emerge due to creation of the new branch of economy. The marijuana black market eventually ceases to exist and the government should require fewer resources to control illegal market, i.e. government expenses reduction.
Works Cited
Caulkins, Jonathan P., et al. Considering Marijuana Legalization: Insights for Vermont and Other Jurisdictions. RAND Corporation, 2015.
Chadi, Nicholas, et al. “Understanding the Impact of National and State Medical Marijuana Policies on Adolescents.” Current Addiction Reports, vol. 5, no. 2, 2018, pp. 93-101.
Copeland, Jan, et al. Quit Cannabis: An Expert Guide to Coping with Cravings and Withdrawal, Unscrambling Your Brain and Kicking the Habit for Good. Allen & Unwin, 2015.
Richter, Kimber P., and Sharon Levy. «Big Marijuana — Lessons from Big Tobacco.» The New England Journal of Medicine, vol. 371, no. 5, 2014, pp. 399-401.
The National Cannabis Industry Association, 2018, www.thecannabisindustry.org Accessed 12 Sep. 2018.
