Every day in this great country we live in, thousands of drug deals are made. A majority of these sales involve the virtually harmless drug, Marijuana. The average profit made on .5 grams of marijuana sold in the street is $6.90 (Mike Moffatt, 1). The reason for the great profit, is the risk-premium put on each sale because of the high risk of jail time and large fines. If you legalized the drug, and sold it commercially for the same price as the street, the profits would be tremendous. In the state that the economy is in today, we may need something like this to help pull us out.
Professor Jeffery A. Miron of Harvard University administered a study on what the economic effects would be if Marijuana was legalized. One of the major places funds would be gained would be in Law Enforcement. The report estimates that legalizing marijuana would save $7.7 billion per year in government expenditure on enforcement of prohibition. This seems like an outrageous amount of funds to be spent on cracking down on a seemingly harmless drug. A majority of these funds that are saved would go to local and state governments rather than the Federal government. I believe this is where we need the funds the most (Jeffrey A. Miron, 2) .
Another way you could get large amounts of revenue from the legalization of the drug would be through taxation. The study by Professor Miron also estimates that if marijuana was legalized and taxed just as all other normal goods it would yield tax revenue of $2.4 billion annually. If the taxes placed on marijuana were comparable to tobacco and alcohol, they could yield as much as $6.2 billion annually. Our country is in great need of an economic boost right now and I believe this could possibly be it.
With the baby-boomers generation growing older, there are going to be more and more older people in our population. Inevitably, as people grow older, they become more susceptible to diseases...