Discuss the economic implication of the legalization of medi

Discuss the economic implication of the legalization of medical marijuana. Who are the winners and losers?

Solution

The economic implication of legalization of medical marijuana are as follows:

1. It will aid to increase the revenue without increase in tax - Currently the marijuana industry in ruled and governed by criminals which doesn\'t have any record for transaction. When these are legalized, the transactions will come under tax purview and thus will generate more income for the government. Cannabis is a multi-million dollar business which when legalized will generate income in millions to the government.

2. It will create additional jobs - Currently farming and taking care of marijuana plant cultivation is solely done by criminals, when the farming of cannabis becomes is legalized, it will create jobs for many horticulturalists, researchers and many more citizens will be benefitted indirectly. When an economy fourishes with job opportunity, it will make the economy robust.

3. It will aid greatly in decreasing government spending - The amount that the government spends in preventing cannabis is more than an estimated amount of $20 billion. If government takes steps to legalize the cultivation of this small plant, it will save the government spending in billions and billions.

4. It will aid in increased efforts in infrastructure development and support various social programs - The amount that is saved from spending on preventing the cannabis plant can directly be used in helping the government to provide better infratstructure and better social programs. If the governments runs surplus cash, it will be able to help the citizens in a better way.

5. It will directly reduce the impact of criminal organizations - If government takes the decision of legalizing and regulating medical cannabis, the profits generated from the business to murderous criminals will straight away be taken away and transferred to licensed and regulated businesses. By making the crime organized and regulated we can weaken the criminals and set responsible standards for business.

If medical Marijuana is legalized then, government and local public will be winners whereas criminals and illegal business men will be losers.