Marijuana Economics

Will California become the first state to legalize the production and sale of marijuana? November ballot measure Proposition 19 would allow local governments to choose whether and how to regulate and tax marijuana. Some are concerned about legalization's effect on consumption and public health, while others tout the potential boon to city and state coffers. Besides the jaw-dropping estimated retail price decrease from $400 to $38 per ounce, nothing is really certain about the potential impact of Prop 19. Advocates of both sides argue the pros and cons of pushing pot through the legal pipeline.