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Consequences of Legalizing Marijuana

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Consequences of Legalizing Recreational Marijuana and Hemp Throughout the US

Colorado is expected to bring in $185 million in revenue from taxing recreational marijuana sales. This money will be used to fund substance abuse support, law enforcement support, education support and funds to what they call “statewide coordination.” Recreational marijuana alone however, cannot get our federal government out of the hole that it is in now. Even if the revenue was about $100 million from ever state that has recreation cannabis, and if all states had legal recreational cannabis, it would still not even get close to how much money the government needs to generate. The problem with that is that once the government legalizes marijuana recreationally everywhere, it will create a black market due to people not wanting to be charged such outrageous prices and taxed so intensely. If certain states make marijuana recreationally legal, that would be for the best in my opinion. The US government wouldn’t really benefit from that amount of money even if all the states were legal, there was no black market and everyone was making a lot of money. According to an article in Forbes about a report made on the inefficiencies of legalized cannabis, Colorado won’t even make half of what they were estimating to make. The article explains how right now the cost of growing is around four hundred dollars per pound of cannabis. This price would have to increase to eleven hundred dollars per pound of cannabis to make it so that the tax revenue would be as estimated before. This would drive the prices to be incredibly high, creating a black market that would completely destroy Colorado’s cannabis economy. There is one thing, however, that the government could legalize and should legalize immediately that would change the economy of this country greatly. Industrial hemp is something that the US imports between $15-$20 million of hemp every year. Hemp is the strongest raw material that can be grown in almost any conditions. It used to be legal in the United States and a person would actually get a fine if they refused to grow hemp. Hemp is used in over 25,000 products in the US and provides seeds, oils, fibers and most importantly a medicinal active ingredient of cannabis called CBD. CBD does not get you high. It simply holds medicinal value and the US government actually has a patent for CBD already, although it is still federally illegal. In my opinion I do believe that some states could benefit from legalizing recreational cannabis but as of right now, the best thing for the government to do would be to watch what happens in Colorado and Washington over the next decade and then make a decision about federal recreational legalization. Hemp however must be legalized and used to our advantage. It is a miracle plant that has been documented over centuries to help boost economies and has been used for almost any application.

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