How New York Would Benefit From Legalized Medical Marijuana

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Abstract

In establishing the benefits that would be accrued from legalizing medical marijuana, the report of U.S. Department of Health & Human Services SAMHSA together with National Organization for the Reform of Marijuana Laws (NORML) projections are used to reflect on the benefits of legalized medicinal marijuana in New York.

These sources are backed up by the available articles. The collected data was analyzed by comparing revenue obtained and expenditure between states that have legalized marijuana and states that have not legalized marijuana. Another yard stick used was the comparison of court cases between states that have legalized marijuana and the ones that have not.

The comparison revealed that states that have legalized marijuana had more revenue and less expenditure as compared to states that have not legalized it. This increased revenue could be attributed to taxes received from marijuana. Another shocking revelation was that in the states where marijuana is legalized, a suspect could incidentally be charged with another crime along with the possession of marijuana.

This research paper explores the various ways New York City can benefit from legalizing medical marijuana.

Literature Review

The Current Situation in US Fighting Against Marijuana

The US government marijuana prohibition has raised various controversies regarding its benefits to the government, entrepreneurs and the consumers. Recently, there has been a growing concern to legalize it, mainly for medical purposes (Gieringer et al., 2008). For this matter, states and cities have been wrestling with the question of what medical marijuana is or should be. Several states have recently legalized medical marijuana.

However, several legal disparities exist regarding medical marijuana at state and federal levels that have made it illegal through Controlled Substance Act. The supporters of the Act point out that prohibition curbs trafficking, usage and ultimately reduce crime, thus enhancing productivity and good health.

On the other hand, critics argue that prohibition has more reserved impacts on usage as much as trafficking and eventually, more problems arise (Gieringer et al., 2008).

In order to understand how New York City would benefit from legalizing marijuana, the report by the “U.S Department of Health & Human Services (SAMHSA)” as well as “National Organization for the Reform of Marijuana Laws (NORML)” projections were used as sources of data among other available references to analyze the impact of legalization. This research paper explores the various ways New York City can benefit from legalizing medical marijuana.

Therapeutic value of medical marijuana is still a controversial issue among scholars and medical researchers (Mathre, 1997). However, cannabis has found various clinical applications and can be used to treat simple illnesses as migraines, premenstrual syndrome and even terminal and severe illnesses such as spinal injuries and glaucoma.

There is sufficient proof that marijuana is more effective than synthetic THC for some patients. Besides, the symptoms of nausea and wasting syndrome being treated with marijuana are actually life-threatening ailments which cannot be ignored. However, this has not prompted DEA to legalize it for physicians to prescribe it to patients who need its therapeutic effects. Some states in the US like California and New Jersey have already legalized marijuana for medicinal purposes (Gieringer et al., 2008).

However, the US federal government has restricted patients from accessing cannabis and threatens medics who prescribe it with license cancellation or persecution. The proponents of legalization argue that, the side effects from taking marijuana are much less significant than the side effects of other approved drugs.

The obvious effects of inhaling marijuana are the respiratory diseases such as lung cancer and asthma (Mathre, 1997). Other effects range from euphoria, paranoia, and sedative effect. It has also been associated with higher heartbeat rates, panic attacks, and de-realization among others. Consumption of marijuana has been cited to affect memory, coordination, perception, problem solving, and even low blood pressure.

THC has effect on cannabinoid receptors and alters their function particularly those associated with memory pleasure, concentration, and coordination. High doses of marijuana have more adverse effects. For instance, one can experience hallucinations, disorientation, loss of memory and delusions. The ‘high’ effect of marijuana causes relaxation and pleasure to the user and it’s therefore, commonly used as antidepressant, sedative and as an analgesic (Mathre, 1997).

Results and observation

The 2007study by the U.S Department of Health & Human Services SAMHSA regarding drug consumption ascertained that over 1.95 million California residents consumed marijuana, whereby every day consumers were about twenty percent of the residents. Regular users averagely used 2 oz or 2g of marijuana daily according to the research done by the Independent Drug Monitoring Unit (Gieringer, 2009).

National Organization for the Reform of Marijuana Laws (NORML) projected that legalizing marijuana could accrue the state not less than $1.2 billion in tax revenues and reduced enforcement costs. A basic $50/ounce excise tax (roughly $1/joint) would yield about $770 – 900 million per year plus another $240-360 million in sales taxes.

In addition, the state would save over $200 million in enforcement costs for arrests, prosecutions and prison. Additional benefits would be obtained from increased employment and spin-off industries. Total retail sales of marijuana could be on the order of $3-$5 billion, with total economic impact of $12-$18 billion including spin-off industries such as coffee houses, tourism, plus industrial hemp (Gieringer, 2009).

Table 1: Number of Arrests Due to Marijuana Prohibition.

Total Arrests Marijuana Possession Marijuana Sale
California 1428248 50149 12338
New Jersey 375049 20285 3058
New York 1295374 101739 11309

(Miron, 2005)

Table2: Expenditure From Marijuana Prohibition.

Police Budget
Total M/J P
Judicial Budget
Total M/J P
Corrections Budget
Total M/J P
TOTAL
Total M/J P
California 8703 227.97 6255 681.80 7170 71.70 22128 981
New Jersey 2231 78.52 948 103.33 1480 14.80 4,659 197
New York 5717 274.42 2262 246.56 4392 43.92 12,371 564.90

(Miron, 2005).

Table: 3 MARIJUANA TAX REVENUE-Populations method.

Population Proportion Tax Revenue
California 33,871,648 0.120 96.3
New Jersey 8,414,350 0.030 23.9
New York 18,976,457 0.067 53.9

(Miron, 2005).

Table 4: MARIJUANA TAX REVENUE- Consumption method.

Use Rate User Population Use Proportion Tax revenue
California 0.068 2,296,498 0.132 105.4
New Jersey 0.050 420,718 0.024 19.3
New York 0.075 1,427,030 0.082 65.5

(Miron, 2005; Polonsky & Waller, 2011).

Discussion

It is quite evident that the results and findings are relevant to the research topic. The findings precisely provide facts and information of how legalization would economically, socially, and medically impact New York City. The budgetary implications of illegal marijuana are enormous.

Legalizing marijuana would salvage 7.7 billion dollars annually in state and federal expenditures for implementing the laws and at the same time generate tax revenues of close to $2.4 billion per year if taxed similar to other consumer items. If Marijuana would be taxed like tobacco or alcohol, it would collect close to 6.2 billion dollars per year. In New Jersey, medical marijuana laws were implemented in 2010 and this should be an example to other states since the budgetary benefits generated from legal marijuana in this state are worth it (Pacula et al., 2002).

The budgetary impact of marijuana is obvious but it should not only be taxed but also regulated similar to other consumer products. In doing so the states and the federal government would ensure safe production, efficient distribution and healthy uses. This would reduce the recreational use to a significant level.

It would do away with the illegal trafficking. Furthermore, the great expenditures directed to prohibition enforcement could be used for other economic gains. Besides, legalizing marijuana would attract entrepreneurs who would ensure a constant market supply and ultimately reduce its market price (Miron, 2005).

Illegal or prohibited substances always create syndicates or organized criminal groups that illegally traffic the product. In addition, these substances become very expensive to consumers due to the cost of production, transport and other illegal distribution channels through which the products have to pass, before they get to the hands of the consumers.

Another economic benefit of marijuana is its therapeutic uses. Due to its therapeutic importance, marijuana could ease the nation’s economic burden that is incurred from the purchase or production of other drugs used to manage illnesses that marijuana could treat. In this regard, marijuana would go along way in helping patients to cope with terminal illnesses such as cancer, AIDS and multiple sclerosis rather than spending money on other drugs.

This would also relieve consumers from the medical expenses incurred on other more expensive drugs. It is the rights of these patients to enjoy effective, cheap and relaxing medication, which would only happen if marijuana would be legalized for clinical use.

Table 1 reflects on the numbers of arrests in 2000 in California, New Jersey and New York states. The arrests resulting from possession of marijuana in New York is quite huge compared to those in California and New Jersey states in America. This could be attributed not only to high demand for the drug, but also its illegality in the city.

The high demand can be seen in the arrests arising from the sales. Being an illegal drug in the city, many entrepreneurs try to smuggle in marijuana as much as possible due to its high demand. Some of the arrests for possessing marijuana are made while the police are conducting their routine search for the non-drug offences. Hence, for the states where marijuana is legalized, a suspect could be incidentally charged with another crime along with the possession of marijuana (Miron, 2005).

Table 2 is a budgetary projection: M/J P stands for marijuana prohibition. From the table, it can be seen that police budget in New York is quite large compared to the other two states. This could be due to the fact that, the police have to fight illegal entry of marijuana in the city, hunt the criminals, prosecute them, and finally put them behind bars. Therefore, legalization saves criminal justice funds which could be diverted to other economic utility (Miron, 2005).

This is supported by the data obtained in which the total state expenditure in the year 2000 added up to 1.71 billion USD. In the same year the total amount of the judicial and legal budget added up to 2.94 billion USD while the correction budget was 484 million USD. The total state and local government expenditure was 5.1 billion, channeled towards prohibition. The criminal justice net savings for legalization was 5.0 billion in 2000 and an estimated 5.3 billion in 2003 (Miron, 2005).

Table 3 represents tax revenue accumulation for the states and the federal government. It shows that tax revenue from marijuana is actually dependent on the population. A more populated city is likely to have high number of marijuana users. This high demand normally generates huge revenue for the state and the federal government. In the year 2000, the tax revenue accrued was 1.6 billion dollars for the federal government and averagely, 16 million dollars tax revenue for every state (Miron, 2005).

Table 4 indicates the states’ revenue, assuming that tax revenue is comparative to consumption rates in each state. California where marijuana is legal, the use proportion and tax revenue is higher than in New York, where marijuana is prohibited. This can be attributed to the fact that the tax generated from marijuana goes straight to the government as opposed to operating cartels in the marijuana trade (Miron, 2005; Polonsky & Waller, 2011).

Recommendations

The medical practitioners should endorse state laws which enable physicians to prescribe marijuana based on its therapeutic value to their patients. Furthermore, in legalizing marijuana laws, the medical practitioners, policy makers and professionals have to cooperate so as to promote medical marijuana legislation (Jamerson, 2006).

The New York State should not only legalize marijuana but also put in place the safety measures for its production and testing. In addition, legalization should come with other pieces of legislation to curb the perceived “increased” recreational use of marijuana resulting from increased supply.

Experience

In carrying out such exciting research work, a lot of knowledge is usually gained. Besides, practical skills such as observation and analytical skills are normally gained. Communication skills gained cannot be ignored. However, such research work leaves a lot of questions to be answered. For example, there is a question on how to curb recreational use of marijuana if it is legalized (Jamerson, 2006). The question of how marijuana should be tested for prescription and what dosage to administer still remains unanswered.

Conclusion

In conclusion, Marijuana legalization would generate more benefits than its criminalization. Rather than criminalize marijuana, the New York City should consider legalizing its use in the medical community due to the budgetary implications it has on the state. This will reduce expenditure and simultaneously generate revenue for the state.

The revenues accrued could be used to improve the provision of services in the city. Besides, the medical organizations should embrace the legislations which permit prescriptive access to the product. Policy advocates like NORML should accept the fact that the effectiveness of marijuana laws could be experienced if they withdraw the criminal penalties for consumers who are caught in possession of medical marijuana as approved by physicians.

References

Gieringer, D., Rosenthal, E., & Carter, G. T. (2008). Marijuana Medical Handbook: Practical Guide to Therapeutic Uses of Marijuana. Oakland, CA: Ed Rosenthal.

Gieringer, D. (2009). . California NORML Report. Web.

Jamerson, W. (2006). State and local government issues. New York: Nova Publishers.

Mathre, M. (1997). Cannabis in medical practice: a legal, historical, and pharmacological overview of the therapeutic use of marijuana. Jefferson, North Carolina: McFarland.

Miron, J. (2005). Budgetary Implications of Marijuana Prohibitions. Web.

Pacula, R. L., Chriqui, J. F., Reichmann, D. A., & Terry-McElrath, Y. M. (2002). State medical marijuana laws: understanding the laws and their limitations. Rand Corporation. Web.

Polonsky, M. J., & Waller, D. S. (2011). Designing and Managing a Research Project. A Business Student’s Guide. 2nd Ed. Thousand Oaks, CA: Sage Publications.

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