The Economic Benefits of Legalizing Marijuana
In 2007, the American economy took a downturn known as the recession. People began looking for a quick fix to our nation’s economic problems and one fix may be right in front of us, with the legalization of marijuana. The debate about legalizing marijuana has been going on for the last decade with no end in sight. Politicians, economists, and everyday people cannot come to an agreement over this growing issue. Today economists still converse over how marijuana can benefit our nations failing economy as it has in the past. The problem of our struggling economy is not one that can be easily fixed but legalizing marijuana can be a huge step towards fixing it.
The main reason marijuana should be legalized is because it will put the nation’s economy in a position for success. Marijuana can be taxed and sold out of local tobacco and liquor stores. Harvard University estimates legalization will bring in 6.7 billion dollars in taxes annually (Barbour 56). Today, America’s economy is struggling and the government is always looking for new ways to generate revenue. A one dollar excise tax on a minimum price of two dollars per joint would leave commercial demand to about nine to eighteen million joints sold, so tax revenues would equal from 3.2 billion to 6.4 billion dollars a year (Gieringer N.P). A fifty-cent excise tax on a minimum price of a dollar per joint would leave commercial demand to about twelve million to twenty-four million joints sold. So tax revenues would equal about 2.2 billion to 4.4 billion dollars a year (Gieringer N.P). It is estimated that the consumption of joints across the United States would be fifteen to thirty million joints a day (Gieringer N.P). All this money generated by taxes on marijuana could help bring our country into a new era of success. Not only could it help the federal government, but also the state and local governments. Each year the state of California generates a hundred...
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