Marijuana Economics...Basic

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Colorado has come a long way to arrive where they are now in the battle to make marijuana legal for recreational use. Marijuana was first legalized for medical use in Colorado in the year 2000. In 2006, they tried further legalizing marijuana for recreational use, but failed. Now, in 2012, Colorado passed Amendment 64 becoming the first state to legalize marijuana for recreational use. This could be the beginning of what could eventually be the end of marijuana prohibition. With Marijuana now legal for recreational use in Colorado, what is to be said about their economy? Legalizing marijuana does a few things for Colorado’s economy. First, it creates jobs for people who can now be in the marijuana business, ganjapreneurs as they’ve been referred to as. Second, legalizing marijuana also reduces the amount of money spent putting “law violators” through the criminal justice system. Lastly, marijuana generates revenue for the state of Colorado. The idea is to tax and regulate it, similar to the way alcohol and tobacco is taxed and regulated. These are the ideas that the article I read in the Huffington Post covers pertaining to the legalization of marijuana for recreational use in Colorado. (1) Another interesting topic, in regards to the recreational legalization of marijuana, are the effects taxing, and supply and demand curve shifts have on the market price compared to marijuana prices now as a subject of medicinal use only.

This article suggests that the year following the legalization of marijuana in Colorado, 2013, 372 new jobs will be created. An excise tax that is now to be paid on marijuana is promised to go toward the Colorado Public School Capital Construction Assistance Fund. 217 of the 372 jobs are for construction on the school construction project which is already lacking in the amount of people it needs. The jobs created, as a result of marijuana legalization, work positively towards Colorado’s economy right off the start by...
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