Effects of Legalization of marijuana in the Economy of California


Cannabis sativa L. is a works that appears of course in most of the provinces and all over the universe. The works has been associated with a batch of benefits and other utilizations by people from all walks of life. Medically, the works has been proven to possess a batch of medical benefits as it can be used in industry of drugs with healing nature and besides has assorted other medical benefits. Marijuana is the name given to the works and all its constituents and merchandises including its foliages, root, roots, seeds and all the other merchandises obtained from it, both when it is turning and even when it has been cut and dried. On the other side, marihuana has been used by persons in different ways, particularly for societal utilizations such as diversion, cut downing emphasis and other utilizations ( Pacula 2009 ) .

The drug has been outlawed in all the provinces in the USA. However, there remains a big per centum of the population that still relies on the drug for their day-to-day life, either by prosecuting in its usage or by prosecuting in its concern. The Marijuana concern has been runing resistance and unlawfully. However, surveies have shown that the concern has been in a changeless province of a roar and has been estimated to amount to 1000000s of dollars. In this manner, those runing the concern have been able to do great net incomes particularly since there are no cost deductions on them in footings of revenue enhancements and other legal demands ( RAND 2010 ) .

Legalization of Marijuana

It has been a common argument in most of the provinces as to whether Marijuana should be legalized and inscribed in the province Torahs therefore leting it to be used freely, merely like any other point in the market. In this manner, the jurisprudence will give a proviso for legality of the marihuana market and besides for all the projects concerned with the drug, including enrollment and revenue enhancement of all concerns, protection of those utilizing the drugs in the right manner and besides a manner to cover with all the offenses associated with the drugs. In add-on, the provinces will be able to put limitations on the drug, therefore guaranting the citizens use the drugs more responsible and in a humane manner ( RAND 2010 ) .

The California province is one of the provinces that have embraced the thought of legalising the drug and even scratching it in the list of the allowed societal drugs together with intoxicant and coffin nails. In this manner, it has been believed that the drug will move as a beginning of gross for the authorities in footings of the revenue enhancements collected every bit good as a beginning of employment and income for many. The measure will besides guarantee citizens who follow the jurisprudence to the missive and do non do problem to others are protected even if they use the drug. Furthermore, citizens will encompass the usage of the drug more responsibly avoiding any instances that may necessitate jailing, probation and medical disbursals for intervention of maltreatment of the drug ( Pacula 2009 ) .

Therefore, there is a demand for the province of California, every bit good as the other provinces in the USA, to encompass legalisation of Marijuana since this will hold greater benefits both to the citizens and to the province in the long-term alternatively of usage of the drug illicitly which consequences to serious and undeserved punishments to those caught and besides leads to loss of one million millions of dollars per twelvemonth I n authorities gross that would hold been collected from the marihuana concern.

Consequence of the Legalization on Demand

It has been predicted that if the authorities legalizes the drug, there will be a batch of alterations refering to the demand for the drug in the market and as a consequence, there will be a batch of restructuring in the marihuana market. Presently, due to the prohibition of the usage of the drug every bit good as the stringency from jurisprudence hatchet mans which includes heavy punishments and possible imprisonment of those involved in ownership, sale or usage of the drug, a batch of people who wish to utilize the drug in a sensible manner have evaded its usage. These limitations from the authorities have acted as an inducement to the usage of the drug and therefore many either merely avoid its usage or transport out illegal activities associated to the drug. In fact, there have been a batch of belowground projects in the market taking to big illegal resistance markets for the drug. In these markets, there are a batch of people involved in the sale and purchase of the drug, though normally in camouflage so as to avoid sensing by the jurisprudence hatchet mans. However, most of the citizens are non able to move on the platform of the belowground projects since they are affecting a batch of hazard and hence are rather unsafe. This has left the whole concern in the custodies of really cunning and unsafe packs that undertake the sale and distribution of the drug and really are armed in a mode to seek and confront any resistance from the jurisprudence hatchet mans, presenting a batch of hazard and un remainder to the jurisprudence hatchet mans and the province at big ( Deist, 2010 ) .

However, it has been observed that with legalisation of the drug, there will be a batch of saneness in the market and riddance of illegal packs that are involved in the market hence leting the drug to be sold freely and in a safer manner. This will better the image of the marihuana market and pull more clients who will in return opt to utilize the drug more responsible and without transporting out any illegal projects ( Whitcomb 2010 ) .

The demand for the drug is therefore bound to increase in a great manner as many will non be afraid of acquiring involved in its sale. This ay, there will be a larger market for the gross revenues, even as the already bing market gets boosted due to its legalisation.

There are many factors that are attributed to an addition in the demand for marihuana. First, the increased demand will increase the monetary values for the drug doing more people to be involved in turning and providing the merchandise, a factor that is bound to ensue in an eventual lowering of the monetary value for the drugs and hence stability in the market. On the other side, the market will hold a greater base for its returns and will besides ensue to increased grosss for the authorities. In add-on, the market will coerce a competition between bargainers ensuing to an betterment of the quality offered and the manner it is delivered. In this manner, the drug will be used more responsibly and will hence hold more advantages to the full society ( Robak 2010 ) .

Consequence on supply

The legalisation of marihuana in the province of California will hold a big consequence on the supply of the merchandise in the market. The chief consequence is that it will ensue to more people wishing to venture into the trade since it is associated with a batch of hard currency flow every bit good as high returns gotten from sale of the of course harmonizing drug. In this manner, even husbandmans will wish to works more workss and therefore increase their crops since the workss require less inputs and less attending but have a batch of returns and do non necessitate any farther processing, except in the medical instances. In the normal fortunes, the workss are harvested and so dried before being packaged and supplied to the market. The high monetary values in the market topographic points will hence pull many husbandmans who will wish to be involved in the production of the drug and so provide it to the market ( Preston and Tracy 2006 ) .

In add-on, legalisation of the drug will ensue to more people acquiring involved in the sale and distribution of the drug in the market in a legal and right manner. This will take to a high competition among the providers ensuing to increased supply and consecutively a lowered monetary value for the drugs. This will besides guarantee the traders in the marihuana industry adhere to the jurisprudence and avoid equivocation of revenue enhancements, a factor that will take to aggregation of more gross for the authorities ( Whitcomb 2010 ) .

Elasticity of demand and supply

The increased demand and increased supply will hold an overall consequence of undergoing oscillations of a rise and a autumn in the monetary values of marihuana. This market will therefore be demand and supply driven, where monetary values will be to the full dependent on the demand and the supply of the drug every bit good as the competition between traders.

Therefore, due to a competitory market, the demand and supply will go more elastic ensuing to a more stable market that will be more dependable by those transporting out the trade, the clients who buy the merchandise and even to the authorities particularly in footings of aggregation of revenue enhancements and responsibilities associated to the trade.

Other factors

There are assorted other factors that will alter due the legalisation of the trade and usage of marihuana. In the oncoming, there will be less involvement of illegal packs being associated to the trade and usage of the drug. This will ensue to an improved security to all involved in the marihuana usage and trade, the jurisprudence hatchet mans and even the citizens at big.

Besides, there will be less disbursement by the authorities on jurisprudence enforcement as it has ever been the instance before, hence, less people will be arrested as associated to the drug and therefore the authorities can deviate the financess to more constructive ways.

On the other side, there will be a batch of enrollment of those involved in the trade of the drugs every bit good as revenue enhancement on such a trade. This will ensue to increased beginnings of gross for the authorities taking to more development in the economic system ( Deist, 2010 ) .

Finally, citizens will be able to encompass the usage of the drug and hence usage it more responsible in the societal, recreational and even medical facets.


The province of California has many grounds to see the legalisation of marihuana in the province. In the long-run, the province will be able to salvage a batch on its budget every bit good as earn more gross from the trade. In add-on, the province will salvage its citizens a batch of jobs as it besides allows them a opportunity to venture into the concern and besides to exert the trade and usage of the drug in a more responsible and good manner.