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The Huffington Post  |  By Posted: 04/20/12 11:36 AM ET  |  Updated: 04/20/12 02:27 PM ET

4/20: 16 Ways Marijuana Affects The Economy

In honor of 4/20, we had hoped to give you 420 reasons to celebrate. Then we randomly got lazy. So here are, like, 16 reasons instead.

Legalizing marijuana could save the U.S. government $13.7 billion by eliminating prohibition enforcement costs and adding billions in tax revenue, according to a paper by Harvard economist Jeffrey Miron that’s gained the support of more than 300 of his economist peers. Proponents have highlighted the potential economic benefits of legalizing marijuana for years, but the growth and legitimization of medical marijuana dispensaries recently could lend the argument more credibility.

Tax revenue from medical marijuana dispensaries is already giving state and local budgets a much needed boost. Oakland, California, for example, inhaled $1.4 million, or 3 percent of the city's total business tax revenue from medical marijuana dispensaries last year, The New York Times reports. Meanwhile, the states of Colorado, Maine and Oregon have all pulled in added tax revenue from medical marijuana.

If the experience of marijuana growing supplier weGrow is any indication, the marijuana industry could also be a big job creator. The chain has opened stores in California, Arizona and, most recently, Washington D.C. and with each new store 75 indirect jobs are created, according to AZBusiness Magazine. Meanwhile, Harborside Health Center, the biggest medical marijuana dispensary in Oakland, employs 120 people, according to the NYT.

But not everyone is convinced legal marijuna would be such a boon for the economy, namely the federal government. Despite President Obama’s campaign promises to respect state laws concerning medical marijuana, the Department of Justice has recently cracked down. This month, Oaksterdam University, which offers training to medical marijuana growers was raided by federal agents, while the IRS has been targeting medical marijuana businesses since last year.

President Obama said in 2009 “I don't think [legalizing marijuana is] a good strategy to grow our economy” but others seem to disagree.

Here are 16 facts on marijuana and business:

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  • $13.7 Billion Saved On Prohibition Enforcement Costs

    The government would save an estimated $13.7 billion on prohibition enforcement costs and tax revenue by legalizing marijuana, <a href="http://www.huffingtonpost.com/2012/04/17/economists-marijuana-legalization_n_1431840.html" target="_hplink">according to a paper endorsed by 300 economists</a>.

  • Marijuana Inmates Cost Prisons $1 Billion A Year

    Inmates incarcerated on marijuana-related charges cost U.S. prisons $1 billion annually, according to a 2007 study, <a href="http://www.alternet.org/rights/47815/" target="_hplink">AlterNet reports</a>.

  • Marijuana Prohibition Costs Taxpayers $41.8 Billion A Year

    Including lost tax revenues, a 2007 study found that enforcing the marijuana prohibition costs tax payers $41.8 billion annually, <a href="http://www.forbes.com/2007/09/29/marijuana-laws-work-biz-cx_qh_1001pot.html" target="_hplink">Forbes</a> reports.

  • California Marijuana Crop Worth $14 Billion A Year

    Marijuana growers account for <a href="http://www.time.com/time/nation/article/0,8599,1884956,00.html" target="_hplink">$14 billion a year in sales in California</a>, making it the state's most valuable cash crop, TIME reports.

  • Illegal Marijuana A $36 Billion A Year Industry

    It's estimated that <a href="http://madamenoire.com/106691/capitalizing-on-the-billion-dollar-marijuana-industry/" target="_hplink">illegal marijuana is a $36 billion industry</a> in the U.S., MadameNoire reports.

  • One-Third Of Americans Think Legalization Would Boost The Economy

    About one-third of Americans say they think <a href="http://www.huffingtonpost.com/2010/04/20/legalizing-pot-will-not-b_n_544526.html?" target="_hplink">legalizing marijuana would boost the economy</a>, according to a 2010 poll by Associated Press-CNBC.

  • Dispensary Ads Boost Newspapers' Revenue

    The <em>Sacramento News and Review</em> saw a big boost in ad revenue when it offered advertising space for more than 60 medical marijuana dispensaries, enabling the publication to hire three additional employees, <a href="http://www.news10.net/news/local/article/144285/2/Marijuana-ads-mean-big-money-for-weekly-newspaper" target="_hplink">according to News 10</a>.

  • Mendocino Zip Tie Program Raised $600,000

    Mendocino County, California's zip tie program aimed at regulating medical marijuana growing by charging permits for each plant raised <a href="http://www.huffingtonpost.com/2012/01/09/medical-marijuana-license-mendocino_n_1193198.html" target="_hplink">$600,000 in revenue in for the Sheriff's department</a> in 2011.

  • Oakland Raised More Than $1 Million In Marijuana Tax Revenue

    The city of Oakland, California raised $1.3 million in tax revenue from medical marijuana dispensaries in 2011, 3 percent of the city's total business tax revenue, according to <a href="http://www.nytimes.com/2012/02/12/us/cities-turn-to-a-crop-for-cash-medical-marijuana.html?_r=1" target="_hplink"><em>The New York Times</em></a>.

  • Colorado Pulls In $5 Million From Pot Sales Tax

    In 2011, Colorado pulled in $5 milllion in sales taxes from medical marijuana businesses, <a href="http://www.nytimes.com/2012/02/12/us/cities-turn-to-a-crop-for-cash-medical-marijuana.html?_r=1" target="_hplink"><em>The New York Times</em></a> reports.

  • Legal Marijuana Could Be $100 Billion Industry

    Economist Stephen Easton estimated in 2010 that <a href="http://www.businessweek.com/debateroom/archives/2010/03/legalize_mariju.html" target="_hplink">legal marijuana could be a $45 to $100 billion industry</a>, <em>Bloomberg Businessweek</em> reports.

  • Each weGrow Center Creates 75 Jobs

    When hydroponic marijuana growing supply chain weGrow opens a new store it <a href="http://aznow.biz/small-biz/wegrow-phoenix-opens-cultivates-opportunities-arizona)" target="_hplink">creates an estimated 75 jobs</a> indirectly, according to AZBusiness Magazine.

  • Majority Of States Support Taxing Marijuana

    More than <a href="http://www.huffingtonpost.com/2010/04/20/legalizing-pot-will-not-b_n_544526.html?" target="_hplink">60 percent of states agree with taxing marijuana</a>, according to a poll by Associated Press-CNBC.

  • Marijuana Affects Workplace Motivation

    A Norwegian study 25 years in the making came to the shocking conclusion that <a href="http://www.huffingtonpost.com/2012/02/24/marijuana-use-has-adverse-affect-workplace-motivation_n_1300278.html?" target="_hplink">frequent marijuana use lowers employees' motivation at work</a>.

  • More Than 1,000 Dispensaries In California

    There could be more than 1,000 medical marijuana dispensaries operating in California, <a href="http://www.pasadenaweekly.com/cms/story/detail/how_does_your_pot_grow/8070/" target="_hplink"><em>Pasadena Weekly</em></a> reported in 2009.

  • Denver Counts More Dispensaries Than Starbucks

    As of July 2011, the city of Denver <a href="http://www.huffingtonpost.com/2011/07/06/medical-marijuana-denver-starbucks_n_891796.html" target="_hplink">counted more medical marijuana dispensaries than Starbucks franchises</a>.

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