Impact of Making Marijuana Legal on the Economy Essay

Impact of Making Marijuana Legal on the thriftiness - Essay ExampleHowever problems arise where the government has lower levels of tax revenue which may strangle make passing, marijuana is an misbranded product and the demand and supply is dictated by current laws, on that point is a bump involved and if it is to be made effective the government has an opportunity to increase revenue, there bequeath be an increase in the payoff of the drug which give increase investment in the production process and therefore provide employment. An increase in employment forget increase per capita and this increase pass on increase spending and the demand for other goods and services in the economy. (Keynes, 2007).In many countries marijuana is an illegal drug and exchanged in the black market. This product has several health side effects however it belt up can be used in the production of other drugs. ... Tax revenueMarijuana has a number of purposes and one of the most important purpos e is that it is used to produce medicinal drugs that can bring to 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 profits and this is due to the risk involved because its illegal to consume 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 presumption 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 irresponsible 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 thei r own products, the production process will require childbed and capital and therefore employment in the economy will increase, this will be a positive impact given the current 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 modify 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