Jared Muir

Dennis Wilson
Econ 1010
26 April 2016
Can Cannabis Legalization Lead to a Better Economy?
Background of Cannabis
The history of marijuana is complicated and long. The first thing that might surprise most
people about marijuana, also known as cannabis, is the fact it was once legal. Not only was it
legal, but one of the largest agricultural crops in the world including the United States. Cannabis
can also be used as hemp; which is the most durable soft fiber on this planet. Up until the 1800s
most textiles were made with hemp as well as most medicines; cannabis was the largest
agricultural crop in the world which had thousands of uses and products. The first marijuana law
actually ordered farms to grow hemp for its uses. The first two copies of the Declaration of
Independence were written on hemp paper. The incredible thing about industrial hemp is that you
cant get high from it, yet it was added to the same category as what everyone knows as weed. Its
superiority was becoming well known with the many uses of it and machinery developing for
hemp specifically. It all started becoming illegal when it was applied to the image of blacks and
the devil music during the 1930s, which lead to the downfall of it. After the first tax act on
marijuana was created in 1937 it became a struggle to grow it. It wasnt illegal to grow it but you
needed a stamp; but the government wasnt giving any out to anyone. In effect all forms of
marijuana became illegal until World War II, Congress realized marijuana was made illegal for

all the wrong reasons and it didnt make people violent but pacifists. Then they made it again
illegal after the war due to the fact it made people pacifists. All through the years, report after
report, everyone came back with the view that marijuana should have no criminal penalty; yet it
remains illegal. Could cannabis be beneficial to the American economy?
Economic Effects
In America and Canada the marijuana business brings in upwards of seven billion
dollars annually (The Union). Prohibition is in turn causing a steady source of revenue for
organized crime. We have seen this happen before, prohibition being the ultimate source of
organized crime. The prohibition of alcohol was taken advantage of by organized crime. Demand
of alcohol was at an all-time high therefore it caused crime-leaders to create smuggling and
speakeasies. Once the prohibition was abolished crime rates dropped and it was once again
regulated. With cannabis being involved in the underground market, it is actually creating crime
and violence which the taxpayers are funding. Many of the illegal growers are in favor of
marijuana remaining illegal, shouldnt that worry most people? They realize that if it remains
illegal then they will continue to reap the benefits. The government associates fear with cannabis
and governments spend money combating that fear in order to justify their spending. Asking
DEA and the war on cannabis to legalize marijuana is respectively the same as asking loggers
to save trees. In fact, Norm Stamper, former Police Chief of Seattle, states that most cops would
in fact support the legalization of cannabis. The only issue is if they support this then they might
lose their opportunity to progress in their career.
In Canada alone they spend $300-500 million annually to enforce marijuana laws. In the
United States we spend $7.7 billion annually to enforce the marijuana prohibition (The Union).

So if prohibition isnt preventing the marijuana business from booming, why dont we embrace
it? Legalizing it will cut government spending on the war on drugs which in turn will not cause
for such a large budget deficit. America could start exporting hemp as a good for extra revenue
and bring an uprising to their export over import. If we could adopt hemp for the use of cloth,
paper, methanol, diesel fuel, industry oils, and protein for livestock it could slow erosion,
reduce pesticide usage, save the rainforests, preserve the ozone layer, and forestall global
warming. (Medical Use of Marijuana: Policy and Regulatory Issues). The legalization of
cannabis means that it will be available to adults and/or crop owners through taxation rigorous
regulations. It could be handled how we handle alcohol; hard to obtain a license and easy to lose
it.
Recreational Use
If it is so beneficial agriculturally, then maybe we should take a look at recreational use
and or medical use. First lets disband myths so youre not consumed in fear; such as marijuana
kills brain cells. In the 60s when the research was conducted on monkeys they never released
information on how the experiment was conducted. When they tested the monkeys they pumped
them full of marijuana smoke with no source of oxygen over a course of approximately three
months. During this time they stated that their brain cells died off and the monkeys died. If you
take away oxygen from the body then eventually the body and brain will shut down and brain
cells will die. When further research was conducted they found that marijuana might in fact be a
stimulus for the brain, obviously that has not gained as much attention. It is also a myth that
marijuana causes cancer, there has been no research conducted which has proven this. Obviously
inhaling heated plant matter may not be the safest thing but it has never done any harm. In order
to have a lethal dose of marijuana you would have to inhale 15,000 joints in twenty minutes,

which is ridiculous. Other myths might include things such as marijuana has no medical benefits.
There are many common people who take THC in order to reduce the effect of their epilepsy and
in many cases it has proven beneficial for the patient. When looking at the amount of people in
prison or jail for marijuana, yes the numbers are high, but most are in there for a simple
possession. Most people are generally given a choice between paying a high fine or to do some
time in rehab or jail, if you dont have money then obviously you would choose the other option.
If you think logically about this it might even be safer to legalize it. When legalizing it you
reduce the chance for it to get into the hands of the children. Drug dealers dont care what age
you are, if you have money theyll sell to you. On the other hand, if you try buying from a
licensed seller, they arent willing to lose their job over an illegal sell. Along with the more
rigorous regulation you can place a tax on cannabis which will bring in extra revenue. On top of
all that it will reduce the crime rate and disband the need for organized crime. There is no point
in buying something illegal if you can obtain it legally.
Medical Use
Medical marijuana has been proven beneficial in most cases. There have been many
reports on improved conditions due to the use of medical cannabis. It can improve your mood,
help relieve pain, and even reduce the effects of epilepsy and other severe medical conditions.
Most companies which sell prescription drugs look down upon this. Cannabis is a safer
alternative to prescription medicine and less expensive. Prescription drug companies are very
large in America, it would make sense that they would want to eliminate competition and try to
convince people that cannabis is not beneficial.
Cannabis Opportunities

Asking for America to legalize it recreationally might be a step too far for most, but we
could still accept it agriculturally. When using hemp as a source for fiber and oils it is doing
much more good than you think. Creating large hemp fields which can be used for paper will
help reduce deforestation. If we can create our own source of paper and soft fiber we wont need
to take forests away for the want of humans. As well as creating these large billion dollar crops
we are creating more jobs, saving the earth, and putting multiple resources into one area. Saving
more trees and creating large crop fields that will produce more oxygen will in turn help reduce
the greenhouse effects and start to battle the large amount of pollution. When you produce these
crops you will need teams to grow and take care of them. You will need to produce machinery
specialized for the production of hemp. You will need government agents to regulate the crops
and keep an eye on them. You will need teams which will turn the hemp fiber into paper, shirts,
oil, or whatever it is you need. These crops have a large return on investment and can help the
unemployment rates in America. Out of these crops you may even produce biofuel which can
reduce the cost and expense of gases and oil. These large crop fields are literally billion dollar
crops.

Overall Impact and Quick Summary

The legalization of hemp could be very beneficial for the economy of America. Creating
the large crop fields will bring in money and may even help reduce the debt of America. Drug
dealers who are growing their crops reap the benefits which America needs. As well as bringing
in money it will create more jobs and reduce the unemployment rate in America. These large
cash crops not only will help bring in money but also be beneficial to earth. It will help to reduce
deforestation and help reduce greenhouse effects. Even recreationally legalizing it will be

beneficial and bring in income. It will help reduce organized crime and create a steady source of
revenue. Obviously if it were to be legalized it would need to be regulated and taxed. All of this
could lead to an economy without such a large debt amount.

Works Cited
Kovic, Nikola. ECONOMIC BENEFITS OF MARIJUANA LEGALIZATION. Diss. Central
European University, 2014.
Fortenbery, T. Randall, and Michael Bennett. "AGRICULTURAL & APPLIED ECONOMICS."
(2001).
West, David P. Fiber Wars: The Extinction of Kentucky Hemp 1 January 1994. Article. 1
December 2014
SCHNEIDER, DAN. "Pot Economics. (Cover Story)." Dollars & Sense 311 (2014): 11.
MasterFILE Premier. Web. 1 Dec. 2014.

Zimmer, Lynn Etta, and John P. Morgan. Marijuana myths marijuana facts: A review of the
scientific evidence. Granite Hill Publishers, 1997.

The Union. Brett Harvey. 2007. Documentary.