Why We Should Legalize Marijuana
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The Economics of Legalizing Marijuana
In the 1920’s congress experimented with the prohibition of alcohol. On February 20, 1933 Congress acknowledged the failure of alcohol prohibition. Today Congress faces a similarly failed prohibition policy. Futile efforts to enforce prohibition have been pursued even more vigorously in the 80’s and 90’s then they were in the 20’s. Total federal expenditures for the first 10 years of prohibition amounted to 88 million, about 733 million in 1993 dollars. Drug enforcement cost about 22 Billion in the Reagan days, and another 45 billion in the four years of senior bush; another 16 billion for 1998, and 17.9 billion in 1999. About 2.6 Billion dollars was spent on marijuana enforcement in the year 2002[1]! These figures show how important drug policies are to everyone and that we can not merely ignore these numbers. Billions of dollars are spent every year to combat the transportation and use of marijuana.
Advocates of legalization believe prohibition reduces marijuana trafficking and use, thereby limiting crime, improving productivity and increasing health. Whereas Critics believe prohibition has only modest effects on trafficking and use while causing many problems typically attributed to marijuana itself. The question is how does this affect our economic statues and more importantly how does this ban affect me? In this paper I will discuss both sides of the story and come to a conclusion as to whether it is in our economic interest to legalize marijuana.
To begin we must look at the implications on supply and demand of marijuana at this time. Currently marijuana is illegal to use and is punishable by law, this makes it more risky to be a supplier and producer of this good, thus driving the price up; because of this specialization it will drive the supply down while cost goes up. If marijuana were to be legalized it would make a market that has extremely low barrier entries and start-up costs. This perfect competition would make it possible for supply to go up substantially thus bringing the price down.
Now that we understand the effects of supply and demand, we need to look at the consequences this battle on marijuana is having on our governmental budgets. There were over two million plus, marijuana related drug arrests in the year 2002. In Utah alone this will impact the police budget of 2002 with a staggering amount of 7.2 million dollars! As a whole country around 1.7 billion dollars will be used by the police to combat marijuana only. In 1998 it costs around $37,500 to imprison a person for one year [2].
So the question arises how we will compute a tax that covers external costs of this drug. The best answer is that marijuana consumption may impose costs on innocent third parties who do not consume it. According to standard economic theory, such "external costs" may be compensated by means of a harmfulness tax. Examples of external costs of drug abuse include increased insurance costs, accidents affecting third parties, and drug-induced violence and criminality. In principle these costs must be distinguished from "internal costs" that fall on the user, such as ill-health, reduced personal income, poor achievement, etc. Taking these external costs into account you would most likely tax the marijuana at around the same percentage as alcohol or tobacco. According to the National Institute on Drug Abuse [3], in 2004 over 14.6 million Americans over age 12 had used marijuana in the month prior to being surveyed and it tool belt.
We shall estimate the size of the commercial marijuana market by posing two price scenarios. Number one, given a $.50 excise tax and a minimum price of $1 per joint, we will assume that home growing absorbs 20% of consumption (that is, one-third of the consumption of multiple daily smokers), leaving a commercial demand of 12-24 million joints per day. This works out to about $2.2 to $4.4 billion per year in tax revenues. Number 2, given a $1 excise tax and a price over $2 per joint, we assume commercial consumption would be cut by 40% to 9 - 18 million joints, yielding $3.2 to $6.4 billion per year. We conclude that revenues from cannabis excise taxes might range from $2.2 to $6.4 billion per year. This is comparable to the revenues currently raised through the federal tax on alcohol ($8 billion) and cigarettes ($5 billion). Now these numbers are based off of 2004 user stats, I believe that marijuana use has increased since that time. In addition to excise taxes, states could also impose sales taxes on marijuana. Unlike excise taxes, sales taxes would be proportional to final retail price, including the added markup for premium brands. Just like alcohol, it can be expected that marijuana would often be sold for substantially more than its minimum price: in a hotel bar, a good joint might well go for $5. Assuming average retail prices of $ 1.50 - $2.50 per joint, and sales taxes between 4% and 6%, the total revenues raised might range from $200 million to $1.3 billion (based off of [4]).
As you can see the amount of money that the Government
would make through taxation is enough reason to seriously consider legalizing
marijuana. We have also looked at the costs of police and the judicial; system
to stop marijuana users. Some may argue that legalization will increase drug
use, like what happened at the end of the prohibition of alcohol. Although this
result may happen when marijuana is first legalized, because of those who would
normally never try this drug because of it was illegal would be more open to
purchasing it. After the initial demand was up, it would begin to go back down
and supply and demand would go back to normal like any other product like
cigarettes or alcohol. This legalization would also take the money out of the
hands of drug cartels and help slow down crime as a whole. That is why I
believe it is in the best interest of our society to legalize marijuana. Do you need a tool belt?
President Obama Speaks about Legalization
Links
1. http://www.usdoj.gov/dea/agency/staffing.htm
2. Drug Text International, International Foundation on Drug Policy and Human Rights, database (1998).
3. http://www.nida.nih.gov/
4. Miron, Jeffrey R. The Budgetary Implications of Marijuana Prohibition: Harvard University, 2005.
What do you think about legalizing Marijuana?Loading...
Wow that would be reason enough not allow marijuana, what is the link for that report?
look in the yahoo,com health section
tony, you tryin' to ruin my high?
I think it's just a question of time before we'll see the legalization of marijuana -- and (I know this is going to sound too callous) the type of testicular cancer mentioned in the research is usually easily treated (although I gotta admit it would make me think twice) (at least).
There is nothing cool about using grass...I saw it in college and looked at the folks using and decided it was stupid, a sign of insecurity, and an effort to please, be a part of the group...
Yeah, testicular cancer can be daunting, and fatal...
goldentoad please bong away ! And that type of cancer may be treatable , however Teresa I can assure you as a male of the species I would rather not have them messin around down there !
maven101- I took my first hit at 13. Twenty years later I feel no effects and I wish I could get high everyday, but work and kids get in the way of that, but I find nothing wrong with a little midnight toke to ease the nerves, sweet dreams babycakes. I have nuts of steel, so I don't worry about cancer there.
It's one thing to talk about statistical probabilities, and another to talk about testicular possibilities. It would really make me avoid marijuana, and I apologize for sounding cavalier in my last comment --
Before I left the house today, I saw a little news blip about CA releasing some 40% of its inmates, my guess is that they are freeing all the potheads, one toke closer to the legalization.
Potential testicular cancer is about as strong a deterrent as potential lung cancer is for many people who smoke cigarettes. As the mother of a weed-addicted teen, I feel very, very strongly that marijuana is not a "harmless, natural herb." The medical grade MJ that the kids are getting here in CA -- using readily available marijuana club cards -- is stronger than anything "we" had in high school/college. The studies I read indicate it IS addictive. Its link to teen depression has been shown. The long-term effects on brain development in teens has been shown. Not to mention that you're breathing it deeply into your lungs. I haven't read anything recently comparing impairment in high drivers compared with drunk drivers.
Having said that, I recognize that we can't and shouldn't shut down the entire alcohol industry because 10% of the population are allergic to alcohol and thus are alcoholic. I know there are people who are able to relax with a toke or two and still live responsible lives (GT -- do not assume I consider you in the category of leading a "responsible" life:-). Given that, I would rather the industry be legalized and regulated so that a) the government could make some tax revenue off it and b) users/sellers would not be subject to criminal punishment unless they ALSO do something else illegal (DUI would still be DUI if it's driving under the influence of marijuana).
I would put it in the same class as cigars, cigarettes and alcohol.
Agreed MM, if we regulate it, at least it won't easier for the kids to get pot instead of alcohol. The pot is stronger than ever before and if it remains underground the strains of the marijuana will only get stronger. I take back what I said about it not effecting people, I have many friends who just don't get it and haven't moved beyond the glory days of high school, but I think education and regulation is key and is a much better route than the experimentation of a kid in jr. high.
GETS U HIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII!!!!!!!!!!!!
Weed is a wonderful herb
weeed is badd
Medicinal marijuana can ease the pain of cancer patients, including people with extreme vomiting, AID's/HIV, multiple sclerosis, and many other diseases. Even the harsh medicines used to treat those diseases can be less painful if you take marijuana. Marijuana is also less toxic than most everyday medicines that you might take for headaches or back pains. If we're willing to hand out so much toxins and even allow smoking regular cigarettes, which are harmful AND addictive, then why won't we allow an herb that is less toxic than those? There are no reports of marijuana causing addiction or emphyzema, which is fatal and painful. Though marijuana has its drawbacks (just like every other pharmecudical drug there is), it is still more likely to help than harm, if used in the right way. The only thing addicting about marijuana is the "friends" some teens seem to make. The marijuana itself is not the thing poeple become addicted to.
i could use a tool belt
The mere fact that Marijuana does this to some people http://stop-smoking-weed.org is the reason I'm against legalization of pot!
hey i think that pot should be legalized not just because i smoke nut it would stop alot of convictions. this isnt a very harmfull drug no worse than smoking a cigerett. if they legalize pot and sold it in stores as they do cigeretts this would highly cut down the drug dealing because it wouldnt be worth as much and this could actually cut down some of the people that sell and not smoke. either way people are going to smoke it and there is nothing the goverment can do. yes pot is a mind altering drug but, you can still controll your self. you would have a better chance getting hurt dinking alchol then smoking weed. if they are able to give pot to cancer patients and people with other chonic illnesses how bad is it really for you. the goverment must not relize that making it illegal people will buy from over seas which money we wont sea again and the rest spent with in the united states is all spent in an underground organazation prettey much this would actually help the economy to legalize it if you look at the facts and take it into consideration you would see what im talking about. most people dont want it legal beacues they have never done it and just think that it is like any other drug and is going to make people start doing it. if you dont want to do it you dont have to. with peer pressure it would be about ellimanated cause they would be making them do something legal and that isnt even peer pressure. that is my opinion and i am 15 years old and in 9th grade.
Its only A matter of time LOL
There is no proof that marijuana increases the vulnerability of cancer. There is not one person who has died from smoking pot and there never will be. The government brainwashes people into thinking weed is dangerous, and those ignorant people create sites about "negative affects of marijuana". The government is a fucking joke.. They expect the people of the house of reps and the senate to be highly-educated and truthful, but of course, people are selfish and try to stay professional for the sake of their paychecks.. Not the people. If marijuana has anything to do with cancer, it would be a life saver. Pot eases pain.. Physically and emotionally. My brother was diagnosed with cancer when he was 18, and during his chemo, typically there is a lot of pain and nausea.. He asked his doctor how he felt about him smoking marijuana to ease the pain and cure his nausea.. His doctor said whatever helps him the most.. If he didn't have his pot like he did during his year of chemo.. I'm not sure where he would be now. Chemo is a very, very harsh treatment, and no one can really relate to that except the cancer victims and family members who must watch their loved one go through it. All in all, I could go on and on about how marijuana should be legalized, but the us government won't open their eyes and realize.. Oh shit, this could be our strongest supply and demand! Idiots.. Legalize marijuana, then maybe our country wouldnt have that huge debt of ours....
I believe marijuana is better for you than lighting up a cigarette and smoking it. It has no harm like a cigarette and or alcohol. It should be legalized because i think its pathetic many people are thrown in jail just for something thats grown in the ground. Every one has tried it and you cant deny it. I am 17 years old and have been smoking it for years. um yes depending on how much you smoke you can lose some brain cells but its a tool if you dont know how to use it correctly then dont use it at all (:
Thats what i gotta say about legalizing marijuana!
In the very near future. It's for the best. :)
Everyone should be free to do whatever he or she likes. But you shouldn´t underestimate the potential dangers of MJ. On my blog http://quitsmokingweednow.com I come across many folks that fell for this misunderstanding that due to the fact that marijuana is a natural plant they thought it won´t harm them at all. But addiction for marijuana is real and can ruin your job, your relationships, your finances, and more. I´m a former addicted and know what it´s about.
The risk of cancer is associated with by-products in the smoke and not from cannabis itself. Even still, the risk of cancer from smoking marijuana is much less than from smoking tobacco. There are so many other ways to benefit from cannabis than smoking it. If we legalize, widespread education and quality distribution of the herb would mean no chance of cancer.
tony0724 3 years ago
I read a report yesterday that men who smoke pot on a regular basis are more likely to get testicular cancer by a ratio of about 70%