LEGALIZING AND TAXING MARIJUANA
CAN SAVE PROGRAMS LIKE HEAD START!

Economics of Marijuana Legalization and Taxation

President Barack Obama's Council of Economic
Advisors is a select group of individuals who
have swiss cheese for brains. The worm holes
allow for trillions of dollars to leak out of the
U.S. Economy.

The words "micro" and "macro" are Greek words
meaning small and large. Microeconomics concerns
the behaviour of consumers, producers and markets.
Macroeconomics is a study of the economy at large.

We need to know why more of some things are produced
than others, and how the level of production can cause
the price of a product to go up when less is produced,
and the price of a product to go down when more is produced.

How can the U.S. Congress determine how many tax dollars
could be raised by taxing marijuana when it is legalized
under Federal Law? We need basic economic formulas.

The greatest fallacy in understanding economic policy is
when someone makes the mistake of thinking that what
is good for some must be good for all. Clear economic
thinking means being objective. We must achieve these
major goals in legalized marijuana production: stability,
efficiency, fairness of laws allowing use of marijuana,
fair and flat taxes, and growth of the market.

Efficiency is a goal we must strive for to have a
valid legalized and taxed marijuana market that can
provide a predictable amount of tax dollars for the
government. We need to create as many jobs as
possible in the farming production, transporting
and packing, and sales industries of marijuana.
We need the most productive technical standards
for creating consistent marijuana products with
distinct qualities for each brand of marijuana product.

We need to have an eye towards not just creating
and maintaining minimum wage jobs in the
marijuana industry, but to improve the standard
of living of marijuana industry workers to a
"livable" wage.

There are three major forces are at work in a free
and competitive market:
the number of buyers of marijuana and
the number of producers and sellers, and the amount
of money that can be charged to tax the product
while still keeping demand high.

If the price of marijuana products goes too high
because of labor costs and taxes, then the demand
for marijuana products will fall. When the demand
for marijuana products falls, the government will
take in fewer tax dollars.

People are basically predictable. Out of the entire
population of the United States of America,
a certain percentage of people will buy marijuana
products when they are legalized under Federal Law.

The people who will buy marijuana come from all
income levels, they have various preferences for
the types of marijuana they want to buy because
some strains of marijuana makes you laugh,
some strains of marijuana
help you to sleep, some types of marijuana strains
relieve excruciatingly painful multiple sclerosis cramps, etc.

The products will be priced
differently in different areas depending on
what type of electricity is available and how
much it costs, what type of gas is available
and how much it costs, how
far the marijuana products have to be trucked or transported,
and the extra cost of transporting the marijuana products to
areas which are remote by boat or air, and the
number of consumers in any area, and inflation
or deflation at the time of purchase.

Government involvement in the marijuana market
will take place because the chief source of revenue
for the Federal Budget is Taxation.

The producers and sellers of marijuana want to
make a profit - that's their game, as opposed to
the other "team", the buyers, who want the
best bargain for their money. The Government
wants their cut off the top.

Now, pretend you are an Economist working
on President Barack Obama's Economic Policy
Council - How much will you tax legalized
marijuana per ounce? What if there is only
a small amount of marijuana in marijuana beer,
marijuana tea, or marijuana brownies - how
will you decide how much to tax those
marijuana products as compared to pure
marijuana for smoking pleasure? Can you
tax marijuana for medical use when no other
medicine is taxed when ordered by a
doctor's prescription?

If the price of legalized marijuana and marijuana
products are expected to rise sharply in the future,
the producers and sellers will WITHHOLD
some or all of their current supplies, so they
can sell them on the day the prices go up.
An expectation of a future price increase
on marijuana and marijuana products is
called "inflation". During times of the year
when marijuana is not "ripe" in the fields there will
be price increases for the sales of frozen buds
taken out of freezer storage.

If the price of legalized marijuana and marijuana
products is predicted to go down in the future,
then sellers will want to sell as much as they
can today, because the price will be lower
tomorrow; so because of a momentary
increase in supply, the result is "deflation".
This occurs when a large areas of the
United States have marijuana crops "budding"
and coming into perfect ripeness.

The bottom line is, we can predict periods
of inflation and deflation in marijuana and marijuana
products when the U.S. Congress legalizes
marijuana under Federal Law. Therefore,
it is a valid product than can be taxed.

We need the taxes, we need them right now
for programs like Head Start for children,
medicaid and Medicare and Social Security
and food stamps for our most vulnerable
citizens.

12 million people are out of work in the
United States right now. 12 million illegal
aliens have moved in. 2 million Americans
are entirely homeless. It is only because
of our lax security that September 11, 2001
happened. It is only because of our
laxed security that a few good Americans
died on Sept. 11, 2012.

Tax dollars help buy national security.

It is in the best economic interests of the
United States of America to break treaties
with the United Nations that interfere with
marijuana legalization.