Monday, April 29, 2013
Pot Smoke in the Air: A Warning of Trouble?
So, as everyone knows, the marijuana business is now legal in some states but illegal in the overall country. Now banks, facing fees and regulation from the government, won't consort with the "illegal" industry of cannabis growing or any of the actual businesses. This means no credit, no financing, nothing. It is a problem that will eventually lead to the rise of the black market for the drug trade again, not to mention lost profits for the government in taxes, simply because it is federally illegal. If it is federally illegal, should the states have been allowed to vote on it in the first place? Will the government deregulate? All questions yet without answers.
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Because it is not yet legal on a federal level, the federal government is continuing to shut down legal drug farming and selling operations. Banks may not want to risk lending to this industry because they are not certain of a return to investment.
ReplyDeleteThis is a huge question facing the government. On one side you have proponents for the legalization of marijuana saying it could be a lucrative business where the government could reap the profits of a highly taxed and regulated industry. On the other hand you have critics of the proposition who say this could be harmful to the overall health of the country and therefore should not be legalized. I believe it should be left in the hands of the states to decide. There are upsides and downsides. Overall a very interesting topic of debate.
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