Marijuana legalization could bridge economic gap

As the economy continues to struggle, many states and cities in the U.S. are looking for ways to bridge the gap. At least one expert says the legalization of marijuana might help.

Frederic Murphy, a professor at the Temple University school of business, says that if the drug were legalized in an American city like Philadelphia, it would likely be a boon to the local economy.

“If marijuana were legalized in the city and not elsewhere, it would be highly profitable for growers and distributors,” he told Metro. “This creates a real opportunity for very steep taxes that would help balance the city budget.”

But Murphy points out to the news provider that if pot were legalized in the rest of Pennsylvania, the benefit to the city would disappear as city wage taxes would likely force growers and distributors out of the city limits.

California state assemblyman Tom Ammiano has suggested that his state legalize the drug in an effort to close the enormous budget gap. In a bill brought before the legislature earlier this month, Ammiano said the legalization could bring in as much as $1 billion per year in tax revenue.

But Allen St. Pierre, executive director of the marijuana advocacy group NORML, said the number could be closer to $20 billion.

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