Current Macroeconomic Topic in US - Term Paper Example

As the fiscal gap continues to grow, policymakers and citizens grow more concerned with the state of their economy, and how they can reduce the deficit they are facing. This paper will examine the impact drug legalization may have on the economy, and how society might react in the face of this new reality. Economists argue that the current fiscal gap the region is facing might be reduced with the implementation of certain policies. The legalization of certain drugs in the region is one of the main issues being discussed.

It is clear that calls for cuts or cutbacks in expenditure and increase in taxation are receiving little or no support (Buning, Drucker and Matthews 116). This issue brings to light some of the unconventional ways in which lobby groups, politicians, and citizens have welcomed the legalization of certain drugs in order to reduce the deficit. There are benefits attached to the legalization of drugs such as marijuana, for example; lower prohibition expenditures, reduction in criminal justice expenses, and even a reduction in the levels of arrests, prosecutions, and imprisonment of individuals involved.

States that have currently legalized the sale, distribution, and use of marijuana are expected to meet some of the budgetary savings they predicted. If this happens, it is possible that countless other states will follow through with the legalization of the same drug. Some of the benefits are mentioned in countless discussions and debates. It is worth mentioning that recent studies point to the fact that the government can save over $40 billion dollars with the legalization of marijuana, cocaine and heroin, and other drugs.

Tax revenue in this case would be placed at an estimated $45 billion dollars annually. This is with the legalization of marijuana, cocaine and heroin, and all other drugs. As this market is driven