If Marijuana Was Legal, How Would It Help The Economy?
If marijuana became legal in America, how would it help the economy? Legalizing marijuana would increase tax revenue, create jobs and decrease black market drug smuggling. These are all great things for the economy, but the question remains: how would legalization affect the economy? Here are some possible answers. These are just some of the benefits to legalizing marijuana. You can also read about the other potential benefits of legalization.
If marijuana was legalized, how would it help the economy? The answer may surprise you. The vast majority of employees in the cannabis industry would not be business owners. Instead, they would be rank-and-file workers, and many of them have criminal records that would make them vulnerable to exploitation. In addition, marijuana has been linked to racial inequities. Therefore, legalization of marijuana would help the economy and create more jobs.
Among other things, legalizing marijuana would reduce the cost of the drug. In Colorado, for example, cannabis taxes generated $7.3 million that was spent on housing and homeless services. If legalization were to occur in the U.S., that revenue would be significant. The federal government would benefit by increasing tax revenue from the sales of marijuana. That revenue could go towards programs that help communities that have been impacted by the war on drugs.
Likewise, legalizing cannabis could generate new revenues. Labor unions, for example, set high standards for jobs in manufacturing. If cannabis were legalized, unions could propagate those same standards into the industry. As a result, workers would be paid higher wages and more benefits. But the question remains, how would legalization help the economy? In short, legalization of cannabis could boost wages and create jobs in the cannabis industry.
Legalization of cannabis in the south could also reverse brain drain. The region has a long history of agriculture and manufacturing, and the South is ideally suited to become a cannabis hub. This new industry will generate enormous amounts of employment. In the meantime, if it becomes legal, it will help grow a new sector that will be worth $50 billion by 2026. If you’re thinking about getting a job in the cannabis industry, remember that it’s still early days.
The cannabis industry is expected to create at least 240,000 to 321k full-time jobs by 2020, which is equivalent to the number of professional firefighters working in the United States. Legalizing marijuana in New Jersey could diversify school budget revenue streams and reduce property taxes. It’s unlikely that the state will change its expenditures, but it could increase the tax revenues and generate new jobs. There are plenty of questions to answer.
In 2014, the state legislature approved the creation of a fund to collect the sales tax on marijuana. The funds must be used to help fund health care, substance abuse prevention and treatment programs, and law enforcement. The fund supports programs like the School Health Professional Grant program, which addresses behavioral health issues in schools. In addition, grants to early literacy programs ensure that reading is a priority in K-3 education. Regardless of where the tax money goes, these initiatives will benefit children and communities across the state.
While the amount of tax revenue from marijuana legalization is not known, it could be anywhere from $350 million to $600 million. This revenue is projected to support 30,000 to 60,000 jobs in the state. In New Mexico, for example, 40% of the revenues would go to the local community. The rest would be used for programs to educate children and expand after-school programs. In Washington and Oregon, the money would support public education campaigns and programs for youth. And in Vermont, the funds would support after-school learning programs.
While the amount of tax revenue from marijuana legalization varies by state, some states are seeing higher revenue than expected in 2017. However, this is not likely to be the case for other states, which could be affected by legislation in other states. Meanwhile, Utah may be facing competition from Nevada for marijuana tax revenue. And with the federal government weighing in, legal marijuana could be on the way to becoming a national model. But for now, the debate remains largely raging.
Massachusetts allows municipalities to collect a small tax on cannabis sales. The state estimates that local cannabis taxes will generate more than $76 million for local governments. And in Michigan, voters approved legalization for adults in November 2018. But the state’s localities have been slow to implement regulations, delaying the transition from the illicit market to a legitimate industry. As of November 24, 2020, Michigan is expected to implement its legalization law. The city of Detroit and its surrounding counties opted-in for legalization on November 24, 2020.
Reduction in drug smuggling
While President Trump has called for an increase in Border Patrol agents and a massive border wall to combat illegal drug trafficking, evidence shows that marijuana smuggling has decreased considerably since the states legalized the drug. Between 2003 and 2009, marijuana seizures decreased by 70 percent per Border Patrol agent. As a result, the Border Patrol has increased its resources and introduced new surveillance technology.
If marijuana was legal, would this have a negative effect on the economy? It may, but the evidence against it is mixed. The War on Drugs expanded beyond the use of cannabis. And the United States’ criminal justice system has been racialized for decades. In fact, racial bias in drug enforcement is widespread in the criminal justice system.
Legalizing marijuana would change the economic equation, which would benefit developing countries. Because it is illegal in the US, farmers in developing countries who grow drug crops might need to switch crops. Existing farmers may even establish a comparative advantage in cultivation of cannabis and earn a higher share of the profits. Legalization would be a step in the right direction for the economy, but will not change the status quo for those who pay for drug prohibition.
If marijuana is legalized in California, would this have an impact on Mexican DTO revenues? This question remains unanswered. Legalizing marijuana in California would reduce the amount of illicit drugs that Mexican DTOs export to the U.S. by at least 60 percent. However, this figure is unreliable. In addition, the government’s response and the actions of other states would determine the extent of reduction in drug smuggling.
Currently, California is producing five times as much marijuana as is legally consumed in the state. Industrialization of the cannabis industry will also strengthen the off-state smuggling industry. Former cannabis growers and dealers, unable to compete with NETA’s brick-and-mortar convenience, are forced to ship thousands of dollars worth of leaves out of state.
Reduction in black market
If marijuana was legalized, would there be a reduction in the black market? While it is difficult to quantify, some estimates have the black market at five times its size. If more states legalize marijuana, these numbers may be similar. In the meantime, many would argue that legalization would reduce the black market. This argument is not entirely convincing. The fact is, the effects of legalization on the black market have been studied to some extent.
In legalized states, there is a reduction in gang violence. This is because gangs are typically associated with illegal drugs. By legalizing marijuana, gang members would no longer have the motivation to target innocent victims of violence. Furthermore, marijuana users tend to perform poorly on standard intoxicated driver tests, just as alcohol users do. In fact, a roadside survey in Washington found that 44% of drivers reported driving after marijuana use in the past year.
Even in states where marijuana is legal, the black market is still widespread. Many small-scale dealers can’t afford to invest in regulations and infrastructure to compete in the market. Those dealers are also free to export their illegal drugs across state lines, further contributing to the black market nationwide. Because illicit products of marijuana are often unregulated and connected to criminal networks, legalizing them could help keep the rates low.
The federal government recently announced $274 million to fight the illicit cannabis industry. This funding will be used to support border and law enforcement efforts aimed at ensuring that marijuana becomes legal in Canada. The money will be distributed over five years. The RCMP and other law enforcement agencies will be responsible for implementing the Cannabis Act. They will be implementing the Cannabis Act in partnership with law enforcement and outreach services.
In addition to legalizing marijuana, the federal government has been working closely with provincial governments and law enforcement agencies to reduce the black market. These efforts have included closing illegal stores, intercepting illicit packages through the mail system, and increasing public awareness of cannabis. The provinces also maintain an official list of cannabis retailers. It is not a complete solution, but it has been a start in the right direction. It will certainly be difficult to stop the criminal activity associated with the illicit cannabis market if it remains illegal.