Professor Tyler
Managerial Economics
5 December 2013
Economic Impact of Legalizing Marijuana
In the United States of America there is currently a longstanding prohibition going on that
surpasses the economic consequences that were present in the country’s first famous
attempt to ban a substance to it’s citizens. This prohibition though, is not of a man made
creation in the form of a beverage, no, it is of a plant that grows naturally from this earth,
like a tree, or a flower. The technical term Cannabis Sativa, or more commonly known as
Marijuana or ‘Weed’ is the topic of discussion. This plant has been criminalized in the
United States since 1937 when Congress passed the Marijuana Tax Act. Thus making
possession or the transfer of marijuana illegal for the first time in the history of this
country, igniting one of the longest lasting and surely most expensive conflicts between
citizens and our government. This paper though, is not intended to give a history lesson,
nor belittle our government on the seemingly senseless criminality of this naturally grown
substance, though you may get a little of both; no, Its real intent is to simply explore the
hypothetical economic benefits that this country would receive if the substance were to be
legalized.
Marijuana is such a controversial issue in the United States that it is nearly a guaranteed
topic of debate, at some point, in every major political campaign. Colleges have seminar
sessions that bring together our best and brightest young minds and academics together to
discuss the matter. The topic even comes to the extent that citizens in some states feel so
strongly about the issue that they decided to defy the federal government and enact their
own laws, allowing for recreational use of the substance. Now if this simple, single plant,
that has been around for centuries, is causing an uproar to the magnitude of the prior
mentioned instances, there must be some extremely good reasons as to why.
Our great country has dominated the economic landscape of the globe for nearly two
centuries. Recently, however, we have found ourselves in tough times. People can’t find
work, costs of living are through the roof, and retirement benefits from social security
funds seem to be a complete illusion for us younger adults and our future generations.
Portions of these facts are due to a more globalized economy, where it is obviously more
