I just came across an article in the WSJ about how the Mexican Cartels are moving the pot business in to the US instead of spending time and money growing it back home, and then bringing it in to the states. They are making use of Indian reservations to grow their plants in HUGE quantities. As the article explains, it is a surprisingly easy way for the cartels to make enormous amounts of money which they can use to buy more influence and to fight other groups. With less than a million dollars in start up costs, they have the potential to make tens of millions on each plantation by hiring cheap labor to work on the fields.
This is yet again another frustrating reality for people who are pro-legalization. If governments were more willing to regulate instead of prohibit, it would force the cartels to stop the criminal activities associated with marijuana harvesting and dealing. This would be accomplished because they could not compete with government crops and much lower prices. This way our police can spend time doing more effective forms of police work instead of chasing an enemy that is often impossible to catch. It would also let our good men in uniform stay away from the violence these groups are capable of. It is tragic that so many cops are injured or killed on duty as a result of this.
While I realize that legalization would drive the price down, if the product is taxed moderately, I believe the data shows that the revenue that state and federal government stands to make is still incredible. We can use that money to reduce the deficit and to invest in worthy causes. Local and federal governments can also benefit from lower policing costs, as less police hours and law enforcement resources are needed to fight these criminals. Furthermore, there could be thousands of potential jobs in farming marijuana and creating related products which can give rise to new industries and help the economy recover faster.
It is reported that the Dutch government has tax revenues of over $600 million dollars per year from marijuana sales. They spend a large portion of that to help communities, including helping addicts recover from hard drugs. This is a country of just over 16 million people. Furthermore, Dutch drug-use rates are much lower than in most other developed countries, including the US. This is the reason many neighboring countries are looking at emulating the dutch model of regulating marijuana use instead of straight out prohibition.
Not only that but the government could stand to generate millions more from taxes on related products from new associated industries: other uses for the plant, educational institutions, income taxation, tax on farm equipment and supplies, smoking products such as glass pipes and vaporizers, etc, transport of the product on national railroads, revenue through energy taxation, etc.
Do you think the regulation/legalization of marijuana is a good way for the US government to generate revenue and start a new industry with huge potential? If there was work in this industry would you be interested in it, and if so in what capacity?
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