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Originally Posted by Thrice
Im not sure if many of you noticed, but many of the questions asked were answered in the link I provided. Not saying its valid information, but it is a good idea, hence where would the gov gain profit from its legalization and its availability, So check out that link, maybe it was just mistaken for an underlined paragraph.
Also, there are links at the bottom of that page which answer a million more questions here. Detrimental effects on health (Tore)
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I've read it now and it seems the article agrees on several points I've made here and earlier.
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The study estimates that the average price of 0.5 grams (a unit) of marijuana sold for $8.60 on the street, while its cost of production was only $1.70. In a free market, a $6.90 profit for a unit of marijuana would not last for long. Entrepreneurs noticing the great profits to be made in the marijuana market would start their own grow operations, increasing the supply of marijuana on the street, which would cause the street price of the drug to fall to a level much closer to the cost of production. Of course, this doesn't happen because the product is illegal; the prospect of jail time deters many entrepreneurs and the occasional drug bust ensures that the supply stays relatively low. We can consider much of this $6.90 per unit of marijuana profit a risk-premium for participating in the underground economy. Unfortunately, this risk premium is making a lot of criminals, many of whom have ties to organized crime, very wealthy.
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Summarized here is my point that in order for the government to make money off marijuana, they have to fight the homegrowers - here called entrepreneurs. I wrote the war on drugs would simply shift to a war on homegrowers and so you would still spend money on marijuana related crimes .. The article seems to agree.
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Legalization would eliminate this risk, causing the demand to rise. This is a mixed bag from a public policy standpoint: Increased marijuana use can have ill effects on the health of the population but the increased sales bring in more revenue for the government. However, if legalized, governments can control how much marijuana is consumed by increasing or decreasing the taxes on the product. There is a limit to this, however, as setting taxes too high will cause marijuana growers to sell on the black market to avoid excessive taxation.
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Here the point is basically made again .. The article doesn't really seem really convinced either way, but it shows perhaps a tendency to believe that government might make money despite these problems. I don't agree with them because I can think of more problems than those that are pointed out in this article.
For example they do not mention foreign drug industries which should also be a concern.