Wednesday, May 11, 2011

Should the Decriminalization of Marijuana be the next move for our economy?

Our economy is still suffering from a recession with GDP still very low and Unemployment rates have hit an all-time high. Serious action needs to be taken in order to fix Americas’ economic problems and the decriminalization may be the solution to our problems. Studies show that if marijuana were to be legalized and to be taxed as much as tobacco and alcohol are there could be a potential revenue as high as $6.2 billion dollars annually. It was also estimated $7.7 billion per year in state and federal expenditures on prohibition enforcement would be saved. These numbers are staggering sand such cash flow would give our economy a huge boost and take the first step toward the expansion of our economy. Regulation of the product would eliminate the need for a black market and therefore would allow the purchases of marijuana be included in GDP. The elimination of the black market would also prevent Americans money from going out of our borders due to the fact most marijuana is purchased from out of the country. However there is some uncertainty around the elasticity of demand for the product due to those who engage in home cultivation. source:
Will Noble, Andrew Velvin, Cameron Casey

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