Marijuana is literally now available at the push of a button as the first vending machine was unveiled on Saturday in Avon, Colo. Although similar mechanisms are already in use for registered dispensaries in states where the drug is sanctioned for medical use, this is the first machine designed for the recreational user. It allows customers to buy marijuana directly at their convenience, rather than over the counter.
That is not the only innovative creation that is now available for marijuana users as Denver will soon open Colorado’s first hotel that specifically offers a “wake-and-bake” experience. The state’s first Bud and Breakfast will provide guests with an all-inclusive package, whic includes unlimited food and drinks laced with the drug within a marijuana-friendly environment.
Undoubtedly, Colorado is taking full advantage of its recent legalization of the drug and will be reaping the benefits while it remains illegal in the majority of the nation. However, the ban of the drug is often not obeyed, as Gallup reported that 38 percent of the American population has tried marijuana at least once. The drug is slowly acquiring acceptance with the decriminalizing of possession in 16 states, the legalization of medicinal marijuana in 21 states and the District of Columbia, and the legalization of recreational marijuana in two states. So how long will it take the rest of the nation to follow Colorado’s lead and reap the economic benefits that comes with the legalization?
The prediction is that legalizing marijuana will be a veritable pot of gold, and with a federal deficit of $1.76 trillion, I’d say it is worth giving it a shot. A petition to the president and Congress has been signed by more than 500 economists, including three Nobel laureates expressing that legalization could save the economy $7.7 billion by terminating all associated criminal activities. In addition to this, the United States could profit $6 billion annually if the drug was taxed at rates similar to those of tobacco and alcohol. Not to mention the new jobs and new businesses that will emerge from the new product on the market.
The Colorado Department of Revenue reported last month that the state generated $2 million in tax revenue from the state’s 59 recreational marijuana businesses in just the first month of legal recreational marijuana sales. With figures like this, it seems like a win-win situation.
However, there is an added risk along with the benefits of regulation. For example, if the regulations or taxes increase the price of marijuana considerably, it could promote people to grow and sell marijuana illegally at a tax-free rate. Consequently, we are faced with the familiar problems of criminalization that occurred when the drug was initially illegal. This is a problem the cigarette market is currently tackling.
“There is no doubt that there’s a direct relationship between the increase in a state’s tax and an increase in illegal trafficking,” said John D’Angelo of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
It’s difficult to determine whether this is the case when looking at Colorado and Washington. The Colorado Department of Revenue stated that Colorado levies a 15 percent excise tax, 10 percent special sales tax and a 2.9 percent sales tax whereas the Department of Revenue of Washington State reports that Washington imposes a 25 percent tax on marijuana producers, processors and retailers.
Regardless of the risk that comes with regulation, I think that in the current economic climate, imaginative polices that will save and also generate money must be more seriously considered. If there is the same risk that comes with legalizing the drug as there is with the current prohibition, then it is a no-brainer to take the chance and create a drug policy that is fiscally responsible. Let’s take a lesson from the pot growers in Colorado and innovate.
