Two states, Washington and Colorado,
have become the first states to legalize marijuana for recreational use and
sale as of Tuesday, and economists are saying it could be very helpful to the
national economy if the legalization trend continues.
So far, 18 states have legalized the
drug for medical use, and each state has its own possession limits, fees, and
requirements. Check those out here.
According to the Huffington Post, Washington’s
law includes a licensing regime, which will be handled by the state’s liquor
control board, for growers and sellers only. Initiative 502 (I-502) bans sales
to people under 21 and sets a 25% tax on both wholesale and retail sales. These
funds will be used for drug prevention, schools and health insurance,
according to reports.
Unexpectedly, I-502 was widely supported
by state officials and mainstream media, including the Washington Democratic
Party and local newspapers. It sets a legal limit on THC blood levels for
driving and bans growing for personal, non-medical use.
Amendment 64, Colorado's law, allows personal possession and growing for one’s own use or to
give away. Sales will require a license from the state department of revenue
and will be taxed up to 15% to fund school construction. According to the
Colorado Independent, The Colorado Legislative Council estimates that these sales
could bring in around $4 million to $21 million annually, after accounting for
initial costs.
Now, more than 300 economists, including
three nobel laureates, have signed a petition calling attention to the findings
of a paper by Jeffrey Miron, a Harvard economist. His research suggests that if the
government legalized marijuana it would save $7.7 billion annually by not
having to enforce the current prohibition on the drug. The report added that
legalization would save an additional $6 billion per year if the government
taxed marijuana at rates similar to alcohol and tobacco.
But with a deficit of $1.5 trillion and
counting, it’s still a long way home. And though economists are not directly
advocating the legalization of marijuana, the petition does advocate a debate
of the benefits of legalization in America.
A lot of figures are being thrown around
in this process. For a simpler explanation of the cash flow, take a look at 14Ways Marijuana Legalization Could Boost the Economy.
Oh, yeah...and what do you think? What if this trend continues to the other 48 states?
I really don't have a problem with the legalization of marijuana. I think it is a good idea to do so, strictly for the fact that people are going to do it anyways. The government might as tax it and put the money to good use.
ReplyDeleteI am not a user, but the effects are no more damaging, probably less, than those of alcohol. If we can use alcohol, than we should be able to use marijuana. This doesn't mean that it is or right or wrong. It's just socially acceptable.
My only concern is that if it becomes legal in all states, than people will use it while drinking alcohol. This could create many dangerous situations, especially while operating a motor vehicle.
Marijuana is a gateway drug and may lead people down the path to more addictive and powerful drugs.
I was not surprised these two states legalized marijuana, and I would be surprised if other states don't legalize it in the future. I have read that the effects are not as bad as alcohol, and people are using it even if it is illegal. I can understand why people could think it could help the economy. People will go out and buy it now. I think marijuana will become legal in all states, and I think it will be on the same level of alcohol and smoking.
ReplyDelete