The Californian economy (the world’s seventh or tenth largest economy – depending on the source) is in serious trouble. There is a massive budget deficit in the state and economic conditions will result in lower revenues over the next few years because of lower tax collections. Already, the government has made it mandatory for many state workers to take one week unpaid leave.
In this scenario, any money would be welcome but what if the money came as a result of legalizing marijuana? Marijuana is a $14B market in California (dwarfing milk and cream which generate around $7B every year). Legalizing pot would mean an additional $1.3B every single year in taxes and of course there is a corresponding reduction in expenditure because state officials don’t have to go on too many crackdowns. Interestingly, nearly 42 percent of Americans polled in a survey admitted that they had experimented with drugs at some point of time.
Obviously, there are many negatives to this plan – freely available drugs is going to make a lot of people very uneasy and the whole process of implementing this scheme may cost money. Ultimately, I am sure that this is not going to happen (way too many opponents in the U.S.) but what is interesting is that the economic conditions are forcing people to look for any potential sources for revenue.
You can read the detailed article here