Changes in America: The Marijuana Revolution
Written by: Adam Immel
Over the past 20 years, the United States has slowly transitioned into a much more liberal and progressive stance of one particular drug; Marijuana is slowly being reassessed from the once extremely potent and radical gateway drug it was perceived as for decades, and is now in much more positive light, mostly in thanks to the medical benefits that an estimated 1.4 million have utilized. More recently, states are now legalizing Cannabis for recreational use, beginning with Colorado passing Colorado Amendment 64 by vote in 2012 (officially legalized in 2014). After subsequent votes in midterms, odd years, and the recent election date on November 8th, 2016America now has 8 states and Washington D.C. with complete legalization, and there’s only more to come. Obviously, it seems that in order for legalization to occur, more than the consumer will benefit. With the decriminalization of Cannabis on the rise, one might want to review the effects on state economies and revenue generated for local governments.
In similar fashion to Tobacco products, local state governments are benefitting from Cannabis sale thanks to taxation. In this report, we will use Colorado as our exemplified state. This state has imposed a 2.9% sales tax on both medical and recreational Marijuana. Since legalization, the results and revenue generated due to the popularity of the product have been astounding.
In a fiscal period that ended on June 30th, 2015, Marijuana tax revenue was at $70,000,000, which was almost double revenue from Alcohol (42 million dollars in same period). And serving as a reminder, Colorado isn’t the only one reaping the benefits. Washington state has seen extremely similar results, and now that California is completely in the game, their enormous economy is only bound to grow. These states GDP is only bound to grow now that a new industry is rising.
Additionally, it’s important to see what fields of funding state governments are aiding with all this money. In the state of Colorado, the generated revenue is being properly allocated to different departments, but the main focus in this state is to benefit the development of schools and education. As described in a government report issued in July of 2015, the first $40 million in excise tax generated was allocated towards the BEST fund, which was created to renew or replace deteriorating public schools. The combined taxes then go on to impact various departments, including the Department of Health Care Policy and Financing, the Department of Human Services, and others.
For Prohibitionists, it’s been hard to find a point to argue the negatives to the Marijuana Revolution. Many argued that crime rate would increase, but in the first 5 years in Colorado, that has not been the case. It’s important to understand that the values of American citizens are changing, and that this change in view of individual liberties must also be seen as a gateway towards economic reliefs for governments. If the felony for Marijuana possession were to be lifted, and the Union became completely in accord with legalization, one can imagine the benefits that could be reaped, based upon the changes experienced by progressive states.
Works Cited
"Colorado Now Reaping More Tax Revenue From Pot Than From Alcohol." Forbes. Forbes Magazine, n.d. Web. 15 Nov. 2017.
Maxfield, John. "These 3 Charts Show Why More States Will Soon Legalize Marijuana." The Motley Fool. N.p., 1970. Web. 15 Nov. 2017.
Sullum, Jacob. "Early Lessons From Marijuana Legalization in Colorado." Reason.com. N.p., 2016. Web. 15 Nov. 2017.
"Colorado Council ISSUE BRIEF Staff." N.p., n.d. Web. 15 Nov. 2017.
This is great info on the economics of marijuana; however, as we progress I would like to see a more encompassing breakdown of the costs and benefits of legalization. Do police costs actually go down due to decreased criminal activity surrounding the drug? What are the costs of monitoring the licensed stores? I believe answering these types of questions are the types of things that will shift more people's opinion in favor.
ReplyDeleteThis was really interesting to read. The amount of millions taxation of marijuana was $70,000,000; double than alcohol during it's legalization. If more states contributed to the legal status of marijuana I wonder the amount of taxation there'd be then, with all states. Also, the perception of the positive effects is displayed, which leaves me questioning what negative effects this could bring in. The effects it could have on the incoming youth with their crucial adolescent development. The demand and supply would obviously increase as more states were added to the list, which would cause a higher number of younger adults to become more susceptible.
ReplyDeleteI think that a lot of this is really good information but what I want to hear more about is the health and medical benefits to legalizing marijuana because I feel that the majority of people that still reject the legalization of marijuana have concerns about the possible myths about the drug and how it compares to other, illegal, harder drugs. I think that if the remainder of the US that still is skeptical of the drug could see marijuana in a health related way, especially in how it compares to alcohol, there would be many more people convinced. Or maybe there are still strong comparisons of this drug and other harder drugs and that would change the minds of those who feel strongly about legalizing it.
ReplyDeleteI really like that this wasn't a boring blog about taxes or something, I was interested while reading this whole article. I am not surprised though that marijuana sold much more than alcohol because if cannabis was legalized in Wisconsin since everyone is already so used to drinking all the time they would probably want to get messed up with some other substance, which is why it would be sold much more than alcohol. My only concern of legalizing it would be what if people get bored with both alcohol and marijuana who knows what other drug they would reach for next, so after a few years it could either show positive impacts or negative and I'm not sure if we should take that risk.
ReplyDeleteThis is a very interesting, I’d never previously thought about the economic value of the legalization of marijuana. One thing that I would like to know is how much the prison systems in each state would save from the legalization. A lot of inmates incarcerated in prison are there for minor drug offenses like possession of marijuana. It would be interesting to see how much less the state would have to pay to maintain the prison without these inmates. How would taxes be affected as a result of the decreasing prison population? Would correction officer wages be affected as a result of less inmates?
ReplyDeleteThis was a very interesting blog post and had really good information which led me to think about legalizing in Wisconsin. One major benefit would be the tax revenue. With other states collecting over $135 million this could be a major benefit for our state. Also if Wisconsin legalized marijuana, dispensaries would open which would not only create more jobs but also set the ball rolling for economic activity in the pot industry in certain areas.
ReplyDeleteOverall, your post had quality statistics and information. However, I think it would have benefited you to add some of the downsides to make the post appear more unbiased or even-handed. For instance, the costs associated with the education/PSAS that needs to be implemented when a legalization like this occurs, considering it can be very costly to educate people how to use something responsibly.
ReplyDeleteI know a lot of people are against legalization of marijuana, but there's more too than just people smoking pot. As far as impacting the economy, this industry has opened up lots of jobs and work for individuals. Additionally as mentioned in the article, the amount of revenue that is being generated from this new industry gives a large positive impact on the economy. At one time there was prohibition just like marijuana being illegal. No matter what there will always be two opinions to the topic.
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