Could Legalizing Marijuana Really Lead to More Government Revenue? Kamahl Santamaria - Al Jazeera
go to original February 3, 2014

Counting the Cost: The Marijuana Economy (AlJazeeraEnglish)

Uruguay, not a country usually in the headlines, made a bit of history late last year when it became the first country in the world to legalise the growing, selling and consumption of marijuana.

Latin American nations have openly debated the legalisation of drugs as the US-led 'war on drugs' has widely been seen as a failure. Fed up with the crime and endless bloodshed, they hoped liberalisation would break the stranglehold of the drug cartels.

The move has not been met with outright condemnation in the US as some states there have also moved towards legalisation of the drug.

In the US, around 25 million people are considered active marijuana users, while almost 48 percent of the population have taken the drug at some point. Some 1.5 million people were arrested in 2011 for drug charges, and out of those arrests, marijuana accounted for about 750,000.

The US marijuana business is worth $113bn. And 'business' refers to the growth and usage for - amongst other things - medical use. More than $1.43bn worth of legal marijuana was sold in 2013, an amount which is estimated to increase by 64 percent this year to around $2.34bn.

However, most marijuana use remains underground, meaning the US tax authorities could be missing out on about $31bn in revenue. It is also important to note that more than $10bn is spent on enforcing marijuana laws, which takes the total potential loss to around $41bn.

So, could legalisation really lead to less crime and more revenue for states and governments?

Read the rest at Al Jazeera

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