Micro Economics Marijuana

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The 21st century has been hit with extraordinary events that have ultimately led to the amendments and additions to several laws. Many believe that these new laws are unconstitutional and jeopardize the freedoms, which Americans enjoy. Furthermore, some may go to argue that the most unconstitutional laws are those against Marijuana. Behind tobacco and alcohol, Marijuana has been the most commonly used recreational drug in America for centuries (Morgan and Zimmer). Marijuana is the most commonly used illicit drug in the United States (The Science of Drug Abuse and Addiction). It is a dry, shredded green and brown mix of flowers, stems, seeds, and leaves derived from the hemp plant Cannabis sativa (SDAA). The main active chemical in marijuana…show more content…
Before doing so, we must first understand some basic economic principles. Edgar K. Browning’s Micro Economics book disscuses the perfectly competitive market is a market where there are a large number of buyers and sellers, a firm’s demand curves are horizontal, and where there is perfect information for firms and consumers. In contemporary society, where marijuana is illegal and there are large number of drug dealers on the streets, the business-models that drug dealers use are essentially identical to that of perfectly competitive, and legal, markets, say for instance the market for chocolate bars (Hershey, Snickers, Twix). In a graph, a horizontal -demand curve illustrates that consumers are very sensitive to a price change Browning, 239). For example, If Hershey decides to increase their products by a dime, than those consumers will buy from Snickers and Twixs. Likewise, when drug-dealer A increases their price by $10, the consumers will buy their drugs from drug-dealer B and C instead. A graph and simple mathematics will prove that when firms, or drug dealers, have a horizontal demand curve (or when drug dealers are price TAKERS), consumption of those products (or drugs) will increase, because supply increases relative to demand, so a larger quantity is purchased at a lower price. But simply, with marijuana being illegal, the many drug dealers exhibit the same business trends as legal businesses do. The…show more content…
Legalizing marijuana here will save and make an immense amount of money. Keeping marijuana illegal, however, costs a lot more money. Our tax money is being spent on the cost of prosecution and defense of accused offenders, cost of incarceration of convicted offenders, foster care and social services for children of incarcerated offenders, and cost of active law enforcement (SDAA). Housing a single marijuana offender in a prison costs taxpayers over $100,000 (Donziger). In total, taxpayers spend up $7.5 billion, or $23,500 per person, annually on feeding, clothing, and providing shelter for marijuana offenders (Donziger). Building new prisons, because there is such a vast number of marijuana prisoners, costs even more money. Since taxpayers have paid nearly $300 billion to fund the War in Iraq, it is time a burden is taken off the taxpayer’s shoulders (Office). Incarcerating drug offenders cost taxpayer 1.8 billion annually, according to most analyst (Stuart). Other substantial costs include enforcing marijuana laws. State and local governments spend up to $16 billion a year on enforcing laws, funding educational programs and rehabilitation centers (Office). The amount of money used to keep marijuana illegal is unlimited. This tax money could be more wisely spent on education, welfare, social security, or on the prohibition of true and dangerous
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