The Inelasticity of Marijuana Forty-nine percent. That’s the number of Americans who responded to the 2012 National Survey on Drug Use and Health that they have tried Marijuana. This drug, produced and sold either legally in one of the four states that have legalized it or illegally behind closed doors or under tables could be a revolutionary source of revenue for the federal government. It is estimated that legalizing Marijuana could raise additional revenue of $5.3 billion dollars. There will always be opposition to a controversial law, but since 1969 the opinion of Americans has changed in favor of Marijuana use.
Other side of the argument Weed, Grass, Mary Jane, Cannabis, Pot, Hash; (Buffry) whatever you call it, approximately half of America’s population is still not a fan (Motel). Economists particularly expected the weed market to increase revenue of state government, but it did just the opposite. The regulated
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This is opening the market to the entire country and letting competition drive the price back down. Not only will it dictate the new price, it will aid in reducing the amount of weed sold on the black market. As stated previously, creating a new tax to place on legalized marijuana will create billions of dollars extra revenue. Right now, the “federal government spends billions trying to reduce the demand for illegal drugs through prohibition… Prohibition is also to blame for an enormous opportunity cost. Despite the tax revenue and economic opportunities that a regulated marijuana market could generate, our laws still prevent the legal sale of the nation’s largest cash crop” (drugpolicy). Prohibiting the sale of the Nation’s largest cash crop is the largest missed opportunity for additional revenue that could fund education, roads or anything we are cutting budgets