Impact of Making Marijuana Legal on the Economy Essay

Impact of Making Marijuana Legal on the Economy - Essay Example besides problems arise where the government has lower levels of assess gross which may hinder spending, marijuana is an illegal product and the demand and supply is dictated by menses laws, there is a risk involved and if it is to be made legal the government has an opportunity to growing revenue, there will be an summation in the production of the drug which will increase investment in the production process and therefore provide economic consumption. An increase in use of goods and services will increase per capita and this increase will increase spending and the demand for some other goods and services in the rescue. (Keynes, 2007).In many countries marijuana is an illegal drug and traded in the subdued market. This product has several health side effects however it still can be used in the production of other drugs. ... Tax revenueMarijuana has a number of purposes and one of the most important purpose is th at it is used to produce medicinal drugs that can cure various ailments, on the other hand the product is traded in the black market as a drug, it is estimated that the price is more than triple the cost of production, therefore the traders have huge cabbage and this is due to the risk involved because its illegal to go across and trade marijuana. If the government makes marijuana legal then there will be an increase in tax revenue, the estimated tax revenue is approximately $1billion. The consumption of marijuana products will also increase given that making it legal will encourage individuals to consume the product given that there is no legal risk involved, the increase in demand wills eventually increase trade and therefore increase tax revenue. (About economics, 2009)EmploymentThe other positive impact of making marijuana legal is that there will be an increase in employment. Employment will increase as individuals in the economy will tend to produce their own products, the p roduction process will require labor and capital and therefore employment in the economy will increase, this will be a positive impact given the accepted recession that has resulted into many individuals losing their jobs and per capita income has declined. The increase in employment means that there will be an increase in per capita income and this means that individuals in the economy will have income to spend therefore improving current living standards. Individuals in the economy will have income that will enable them to spend and this will therefore increase the level of demand in the economy and this will be a solution to the current recession that