“Explain how drug legalization influences national economics”

Jennifer Tavarez

Co-Presenters: Brianna Ramirez, Edu Casanova, Cesar Medina, Juan Garcia

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Meng, Chen

Abstract:

Drug policy has become an increasingly important economic issue as many countries and regions move toward the legalization or decriminalization of certain drugs, particularly cannabis. This research examines how drug legalization can influence national economic outcomes by analyzing its effects on government revenue, employment, public spending, and overall economic activity.Legalization may generate new tax revenues through licensed production and sales, providing governments with additional funding for public services such as education, healthcare, and substance abuse treatment programs. It may also contribute to job creation in industries including agriculture, manufacturing, retail, and distribution, potentially expanding employment and economic growth. In addition, legalization may reduce government expenditures related to law enforcement, incarceration, and the criminal justice system.At the same time, the study considers potential economic challenges associated with drug legalization, such as regulatory costs, public health concerns, and unequal distribution of economic benefits. By examining both the positive and negative economic impacts, this research aims to provide a balanced overview of how drug legalization can reshape a nation’s economic structure. The findings are intended to inform policymakers and business stakeholders as more countries consider reforms to their drug laws.