Legalization of Marijuana: Pros & Cons of Global Laws

Several states legalize the use of marijuana on the basis of recreational and medical grounds. The legalization of the drug considers aspects such as its cultivation, distribution, and possession, as well as how it should be consumed and various medical conditions it can be used for. Some of the countries around the world that legalize marijuana include the United States, Canada, Mexico, Costa Rica, Colombia, and Jamaica. However, there are arguments on whether the legalization of marijuana boosts the economy. The paper focuses on research that presents both sides of the legalization of marijuana on the economy.

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Legalizing marijuana boosts the economy of a country in various ways. The cultivation, distribution, and sale of marijuana lead to government earnings through taxes. When marijuana is legalized, it means that the government acknowledges it just like any other business and therefore develops taxation measures for marijuana.

Some of the areas that the government can impose taxes include business tax revenues, sales taxes, as well as payroll tax deductions for companies dealing with the cultivation, distribution, and sale of marijuana (Evans, 4). Therefore, due to increased taxes from the sale of marijuana, the government is able to collect more money and spend it in various sectors, such as infrastructure, thus boosting the economy of a country. In addition, the government can consider exporting marijuana to countries that legalize marijuana and thus help the country earn through exports leading to an economic boost.

In addition, legalizing marijuana would lead to the creation of more job opportunities for the unemployed. By legalizing the drug, it would mean that the government recognizes and appreciates the marijuana-related business (Evans, 23). Investors would, therefore, feel encouraged to start more marijuana-related businesses such as the making of medicinal-related drugs. As a result of increased investments in the industry, more people would get jobs and would, therefore, help the issue of unemployment, thus leading to boosting the economy.

According to the Civil Liberties Union, the United States spends approximately 2.5 billion US dollars in enforcing laws against marijuana (Evans, 14). However, by legalizing marijuana, it means that the country would save the funds used in implementing such laws against marijuana. As a result, the funds can be used to help in the development of the country and thus leading to an economic boost of the country.

Moreover, the legalization of marijuana would lead to an increase in income for people who cultivate and distribute it. Legalizing the drug leads to an increased demand, which would translate into more sales by farmers (Evans, 29). Increased income for marijuana farmers increases the per capita income of households, thus leading to an economic boost.

Past research has proven that marijuana has medicinal value and can be used to cure and manage certain health conditions (Evans, 39). The legalization of marijuana for medicinal purposes would, therefore, translate to a healthy population. When individuals are healthy, they become more productive and therefore lead to an economic boost in the country.

The legalization of marijuana leads to a boom in the real estate sector in various ways. For instance, in states that legalize marijuana, there is a rise in the lease rates and property value due to the high number of people wanting to get land for cultivation, manufacturing as well as the retailing of marijuana.

However, the legalization of marijuana may not always cause an economic boost to a country. Marijuana is a drug, and when abused, may lead to far-reaching negative effects on the population. For instance, it may lead to addiction and mental health conditions such as depression, which lowers an individual's productivity (Pacula et al. 13).

This means that people who abuse the drug can hardly work and only engage in criminal behavior such as robbery. As a result of the unproductive population, it would translate to poor individuals, thus leading to an economic recession in the country.

In addition, the legalization of marijuana would lead to more people abusing the drug and would require medical attention from the government. For instance, the government spends a lot of money in the rehabilitation of marijuana addicts and those with mental health disorders as a result of excessive use of marijuana.

Therefore, it means that the government would spend more money on the medicinal needs of the patients at the expense of a country's infrastructure, development, and economy (Pacula et al. 19). Such expenditures would lead to an economic slowdown in the country. The use of marijuana, especially among tertiary institutions, has led to many school drop-outs. As a result, the economy suffers when a country has many school drop-outs because they fail to acquire the requisite knowledge and skills to run and grow the economy.

Conclusion

The above-discussed arguments describe that the legalization of marijuana boosts the economy. However, critics also provide an argument that the legalization of marijuana may cripple or lead to an economic slowdown. Therefore, countries and states should consider both arguments for and against an economic boost while developing laws and regulations regarding the legalization of marijuana.

Works Cited

Evans, David G. "The economic impacts of marijuana legalization." The Journal of Global Drug Policy and Practice 7.4 (2013): 2-40.

https://www.dfaf.org/wp-content/uploads/2018/11/Vol-7-Issue-4.pdfPacula, Rosalie Liccardo, et al. Assessing the effects of medical marijuana laws on marijuana and alcohol use: The devil is in the details. No. w19302. National Bureau of Economic Research, 2013.

https://www.nber.org/papers/w19302