Legalization of marijuana. How can it boost the U.S economy Research Paper

Legalization of marijuana. How can it boost the U.S economy - Research Paper Example Legalizing marijuana will increase the government tax revenue. The government loses huge revenue from the illegal trade and use of marijuana. Marijuana is the most consumed and most traded substance of abuse in the US. Whether legal or illegal consumers must always find a way of getting it and traders have to smuggle it in the country through the black market. The implication of illegal trading of marijuana is the huge loss of revenue the government could raise through taxation. Therefore, legalizing marijuana gives the government a chance to regulate it through taxation hence increase of national income. For example, the state of Colorado estimated a revenue increase of about $67 million from marijuana sales the first year after legalization. Increase in national revenue will contribute to economic growth because the additional revenue can be used to carry out development activities of the government.Legalizing marijuana will increase employment because many people can open up busin esses as traders, farmers, distributors, etc. Increase in employment opportunities in the country is a contributing factor to economic growth through income they earn. Increase in citizens’ income results to increase consumption hence increase in economic growth.The U.S. government incurs huge expenses to the tune of $40 billion to enforce drug regulations every year. Most of the inmates causing congestion in the U.S. prisons are victims of drugs that have not been involved in any crime of violence.