Enc1102mresearch.weebly.com



Sean MorseDr. GuenzelENC 1102- 0123March 29, 2014Medical Marijuana, a Cooperate Nightmare or an Entrepreneur Success?“Pot,” was originally a term used to describe and illegal substance that was polluting the nation and causing widespread criminal acts. Now, the once explicit nickname for a once “unwanted” drug is being accompanied by a new description, legal. On December 1, 2013 the state of Washington opened up its’ market to a new product, once shunned and illegal, now accepted and revered. Marijuana shops and vendors sprung up across the state. Soon after the state of Colorado followed, and on January 1, 2014, they legalized the sale of marijuana for recreational use. So far only two states have legalized the drug, but rest of the nation is soon to follow. 13 states currently have the legalization of medical marijuana on their ballots, and 7 out of those 13 are currently considering adding the legalization of marijuana for recreational use to their ballots. The common debate in the nation is about the health risks of medical marijuana, but there’s another argument stirring, one that can effect the tide of the nation. The people have always argued the health and liability risks involved with the drug, but a new question has been aroused, “what effects will the legalization of marijuana have on the business community?” The business community will be affected most by the legalization of the drug, due to the fact that they are given the underlying responsibility to market, sell, and distribute the drug. This question has caused a “split” within the business community, as educated bloggers, analyst, and reporters argue over the effects of the legalization of this drug. On one side are those who feel the drug will be extremely successful and benefit the market bringing the economy out of the slumps, and on the other are those who believe the drug’s effects are being over exaggerated and the drug should remain illegal. To begin with, the supporters of the legalization of the drug believe that this drug will change the tides of the business community. Leading to market expansion, new jobs, and insurmountable profits for stockholders and shareholders. States, Florida in particular, that don’t have the drug legalized yet are hoping and preparing because they believe the benefits of this drug on the market are insurmountable. “Jobs will be created. New businesses will be born. All as we help people live better lives and make the world a better place. With laws changing and opportunities growing rapidly, I can’t think of a better business to be in, or a better time to be in it, than this one right now,” said Thomas Quigley, Founder & CEO Florida Cannabis Coalition. Florida has not even legalized medical marijuana yet and some are already preparing for it to enter the market with Colorado and Washington. So far Florida only has medical marijuana legalization on its’ ballet, but they are reconsidering adding recreation use as well due to the short- term success of both legalized states. In an article entitled “If medical marijuana is legalized in Florida, workers will see more benefits than employees,” Brew Dixon analyzes the benefits of marijuana legalization on the work force. Dixon believes the work force advantages are easy too read and clear. Drew Dixon also describes how the legalization of the drug for medical use could possibly lead to astonishing economic benefits in his article, “Economic Impact of Medical Marijuana in Florida an Open Question.” “Based on what we’ve seen in other states and adjusted for Florida’s population, we project that a medical industry regulated in a similar way to Colorado [before all adult use was legalized] could do $600 million in sales in a year,” Taylor West, Deputy Director of the National Cannabis Industry, said. The continuing short- term success of the two legalized states has brought many possible future states into recognition, but narrowing down on the current effects of the drug, rather then the possible future effects is important. Moreover, The ongoing financial benefits of the drug have opened up the market to new things and expanded it into other markets as well. Colorado has released countless reports of the drugs benefits on the business world, in one report from the Huffington Post, they give a number that would “mind-boggle” anyone. “Colorado dispensaries certainly felt supported in January, the first month of retail marijuana, when the shops generated about?$14 million in sales “ (Ferner). Since the drug’s popularity is substantial and growing in Colorado and Washington, the market has created many more “revenue- generating spinoff industries.” The city of Amsterdam, which has legalized recreational use of marijuana over 5 years ago, for instance, describes effects of the drug in their city and how it would statistical translate to the US. “The city of Amsterdam, with a million people, boasts 300 coffee houses retailing cannabis. Translated to the U.S, this would amount to over 60,000 retailers and 100,000 jobs” (Gieringer). Dr. Dale Gieringer strongly uses facts and numbers to describe the current market for the drug in certain places, and the market potential of it in the US. Through his research he describes how the legalization will bring thousands of new jobs, insurmountable profits, and a new prosperous nation. There are countless sources and facts supporting the legalization of the drug for medical and recreational use. The sources are reliable and credible, including the ideas of educated professionals, corporate CEOs, and news reporters. A few of the articles are biased, but this is only natural in a two- sided argument about such a debated topic. Regardless of the minuscule biased remarks the support for this side of the argument is sufficient to argue and educated point. On the other hand, the other side of this controversial topic can be referred to as the “Anti- legalization” side, they believe that the effects of the drug on the business community are over exaggerated and will soon fail or drop out of the market due to various causes. One of the most important aspect of the business world is the stock market, the purchase and sale of stocks is what gives companies the financial edge and stability they need. The “anti- legalization” side believes that the medical marijuana stocks will soon fail. “The astronomical stock prices leave them doomed for failure” (Friedman). Nickey Friedman of the MotleyFool blog network wrote an argumentative essay describing the future downfall of marijuana stocks. Not only does she believe the “astronomical” prices will cause the failure of the stocks, she also believes that three main reasons the stocks will fail is because the drug is too generic, there’s no established companies, and there’s already sky- high valuations. “All of them are up huge with few realistic prospects for the future to justify their market caps in an industry already getting saturated with competition before it's even officially born” (Friedman). Friedman makes believes that these companies are already establishing values for their stocks before the market is even fully established. Though stocks are important to the business community, the legalization recreational marijuana poses a threat for current medical marijuana distributors in Seattle. Furthermore, one overlooked aspect in the debate to legalize marijuana for recreational use is that it will put many medical distributors out of business. The use of marijuana for medicinal use is currently legal in 20 states, 2 of those states have just legalized the drug for recreation use. “In Seattle alone, about 200 dispensaries will have to close, replaced by 21 licensed retailers, and under current state regulations, employees in those shops will not be allowed to even discuss the medical value of the products for sale” (Johnson). The new market and regulations for recreational marijuana will force medical dispensaries out of business, this eliminates an entire segment from the business community and along with it jobs and exuberant profits. Many of the current vendors believe that the value of this drug for recreational use is being over exaggerated due to the reality that this drug will have to be highly taxed to even make it on the market. “As a result, the report ultimately concludes that the $130 million in tax revenue to be raised in 2014 from pot sales?may not even cover the budgetary costs of legalizing recreational marijuana” (Nitti 2). Tony Nittie writes in his article, “ Understanding the Impact of Legalized Recreational Marijuana on State Tax Revenue,” about how the costs, tax, and regulations of the drug that the government is and will enforce will make it hard for businesses to meet their recently predicted profits. All in all, the claims and support for this opposing side of the argument are just as biased and credible as the other side, one difference would have to be the emotions and intensity of some of the writers in these sources. Biased or not, these sources are sufficient and do indeed support multiple points of this side of the argument, the “anti- legalization” side. Most of the writers for this side of the argument are bloggers, educated personal, and news reporters, they take an aggressive and sarcastic stand on this argument, accompanied by a condescending, authoritative tone. Both sides of the argument are represented well, with strong credible authors, easy to clarify points, and exceptional organization. Those who are in favor of the legalization of marijuana stress the facts that it will open up new jobs, increase revenue, and birth a stronger consumer market. The main point being the “insurmountable” profit that is predicted to follow the legalization of the drug. “With no new competition, product already in hand (dispensaries getting into the recreational market are allowed to use some or all of their medical crop for recreational sales), and the staggering demand created by marijuana still being illegal everywhere else, Colorado dispensary owners appear to be sitting on a gold mine” (Kamin). The market is believed to flourish and bring prosperity to those who own a piece of it, but many critic’s argue that the new drug is being over exaggerated by those in the community. The other side of the argument is held by those who believe the effects of the drug on the business world are being over exaggerated, the stocks will soon fail, and the high tax will not amount to the cost and regulation of the drug. “The so-called market size for medical marijuana being touted about is a mirage because it's not based on the inevitable imploding prices and margins that come with heavy generic competition” (Friedman). Anti- supporters believe the drug is too “generic” and not established enough to live up to its’ “astronomical revenue.”In conclusion, this is a well-debated argument with great points on each side. I agree with Nitti when he discusses how the regulation, production, marketing and taxation will be incapable of meeting the high-predicted profits that companies have discussed. With that being said, I do concur with Kamin who discusses how the Colorado dispensaries are sitting on a “gold mine” because of the high demand of the drug. Another aspect of the “supporting” side of the argument that I favor is Gierenger’s point that the legalization of recreational marijuana will open up thousands of jobs expanding the market and bringing the economy one more step out of debt. That is one fact that can be proven, but one thing that can’t is whether the market will survive long enough to be sustainable for sufficient full- time jobs. Like Friedman, many researchers and analyst believe that although the short-term effects look exceptional, the long-term effects are far from beneficial. “Sorry, folks, but there's no such thing as a free lunch (even if you have the munchies). Just like the Internet in the 1990s, marijuana companies and stocks will not break the basic laws of economics. They astronomical stock prices leave them doomed for failure” (Friedman). On that note, I’d agree with those who do not support the legalization due to the simple fact that there are no facts to prove the market will last long term. In order to create a sustainable market, it must be long term in order to appeal to every aspect of the business community. Works Cited"Economic Impact of Medical Marijuana in Florida an Open Question."?Members.. N.p., n.d. Web. 31 Mar. 2014.Ferner, Matt. "Coloradans Even Happier About Legal Weed After A Few Months Of Retail Sales."?The Huffington Post. , 19 Mar. 2014. Web. 30 Mar. 2014."Florida Businesses Gear Up for Medical Marijuana Legalization: Cannabis Industry Event Hits Tampa April 26th."?PRWeb. N.p., n.d. Web. 31 Mar. 2014.Friedman, Nickey. "3 Reasons Medical Marijuana Stocks Are Doomed for Failure."?TheMotleyFool. N.p., n.d. Web. 26 Mar. 2014."If Medical Marijuana Is Legalized in Florida, Workers Will See More Benefits than Employers."?Members.. N.p., n.d. Web. 31 Mar. 2014.Johnson, Kirk. "Providers of Medical Marijuana Face New Fears."?The New York Times. The New York Times, 06 Mar. 2014. Web. 31 Mar. 2014.Nitti, Tony. "Understanding The Impact Of Legalized Recreational Marijuana On State Tax Revenue."?Forbes. Forbes Magazine, 24 Sept. 2013. Web. 31 Mar. 2014." - Working to Reform Marijuana Laws."?Revenues From Legalization. N.p., n.d. Web. 29 Mar. 2014."Who Makes More Money: Colorado's Legal Weed Dealers or Its Illegal Ones?"?Slate Magazine. N.p., n.d. Web. 28 Mar. 2014. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download