Could legal marijuana become big business?
State victories for recreational pot use are prompting questions about its pros and cons.
Does Tuesday's legalization of recreational pot use for adults in Washington State and Colorado signal a death knell for illegal marijuana across the United States -- and the start of a new, legal and profitable industry?
Supporters say the measures will generate tens of millions of dollars in revenue for state and local governments while undermining illegal drug enterprises.
"Prohibition has failed," said an editorial in the Seattle Times. "Licensing the growers and retailers will take marijuana out of the hands of criminal gangs and bring it into the open, where it can be regulated and taxed."
But just how to regulate and tax marijuana in those states remains a huge question, especially since the drug remains illegal under federal law.
Eighteen states and the District of Columbia have legalized the use of medical marijuana. Years of observations of the industry have given analysts a baseline for considering the financial and legal obstacles recreational pot stores will face.
"This is the tricky thing," says Dr. Alexandre Padilla, an economics professor at Metropolitan State University of Denver. "Already you have the issue with medical marijuana dispensaries -- where a lot of banks refuse owners of medical dispensaries to open accounts because they're afraid the feds will close their offices because they are violating federal law."
The U.S. Department of Justice has been relatively quiet on the issue, saying Wednesday it's reviewing the Colorado and Washington ballot initiatives, with "no additional comment at this time." But there are concerns that the measures could trigger legal challenges all the way up to the Supreme Court.
In Colorado, the first recreational pot stores are scheduled to open in January 2014. Local governments can still keep the stores out of their towns, and employers can prohibit their employees from using marijuana. The state "has a lot of work to do quickly in terms of setting up the appropriate rules and structures," Rosalie Pacula, with the Rand's Drug Policy Research Center, told the Denver Post.
Supporters of marijuana reforms say legalizing pot has potentially enormous financial benefits. They say pot is already one of the largest cash crops in the United States. And longtime observers believe that, if legalized and properly regulated, marijuana could become a very cost-efficient commodity.
"It doesn't cost much to produce it if you don't have to hide it," said Bruce Benson, the chair of the economics department at Florida State University. "I don't know if there are the kinds of scale economies in marijuana production that that there are in beer production. It's more of . . . a packaging thing for a retail market, a legal market. So you could see some substantial processing packaging plants perhaps develop. That's down the road."
But all of this is still speculative. "The voters have spoken, and we have to respect their will," Colorado Gov. John Hickenlooper, a Democrat who opposed the recreational marijuana measure in his state, said in a statement issued Tuesday night."This will be a complicated process, but we intend to follow through. That said, federal law still says marijuana is an illegal drug, so don't break out the Cheetos or goldfish too quickly."
the same people here saying 'it is my body I can do what I want' don't get it !
I have no issue with the law being passed or pot in general - all for it - smoke 'em if you got 'em...
the US Govt is requiring you to have health insurance - WTF?
your body you can do what you want does not apply if you are being forced to pay for something you may not need or do not want
everyone get stoned so you will be to oblivious to the rights & freedoms that you are losing daily & if you do happen to notice you can get a Rx for medical pot & have your coworkers pay for it with the new health care law in place...
I've smoked pretty much every day for the last 20 years. Never had to be rushed to the hospital because I was od'ing. Never puked my guts up because I smoked too much. Never robbed a liquor store to buy it. Never sold it to kids or blew the smoke in anyone's face. Never considered killing myself or anyone else because I couldn't handle my high. Graduated from college, always maintain a job, and always pay my bills on time. If someone can explain to me, in detail with logically sound reasoning, what I'm doing that is directly hurting them, I'll glady quit and take up the anti-pot campaign. But it's never happened before, and I don't see it happening now. Blaze on, brothers and sisters...
In 1861, eleven states decided they didn't want to agree with the US government and have more states rights. How'd that work for them? I hope all their Federal funds get shutoff (college grants, agri subsidies, ect) then we will see some backpedalling! Goverment handouts are huge business compared to some weed tax.
Speed The Day when harsh justice comes to visit them in their corporate dens of iniquity.
Soon The Cleansing
I think the initiatives are doomed. Like other products placed under a "sin tax" there will no doubt be a hefty tariff laid on weed. People will be fed up with this sooner or later and the smokers will go back to look for the local pushers to score a lid. I don't smoke dope, but I like beer. Maybe those states should shift the sum total of their local "sin taxes" from all A/B's and tobacco products to the the acquiring of mariguana. I can see it now: Head shops selling the permitted quantity of dope and acting as a state sponsored agency to collect tariffs and maintain records. I don't think so.
it will still take years and years for some to get past THE REEFER MADNESS & CHECH-N-CHONG
STEREO TYPES that are way way over done ! and procreated by the MEDIA in just reporting WTF?
Saturated fat kills and reduces fertility
White flour kills and reduces fertility
High fructose Corn Syrup kills and reduces fertility
GMO grain kills and reduces fertility
Corporate food kills and reduces fertility
MARIJUANA does NOT kill. It doesn't even need to be smoked. It can be safely vaporized or eaten. It's actually a healthy plant to eat with lots of vitamins and minerals.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Breaking up big banks is an untested solution to the too big to fail problem that attempts to isolate and dismantle large, troubled institutions while protecting the rest of the economy.
VIDEO ON MSN MONEY
[BRIEFING.COM] As has been the case throughout the week, there isn't a whole lot of participation in today's market. The proof of that point shows up in the volume data.
Recall that Thursday was the lowest volume day of the year at the NYSE. At this point yesterday, 259 mln shares had trade at the NYSE; today, only 218 mln shares have traded. That clearly leaves today on track to be the lowest volume day of the year.
Given the geopolitical scene of late, there is ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'