How New Marijuana Regulations Will Affect Us

Massachusetts is one of the 24 U.S. states where recreational marijuana is legal:

Federally though, like heroin, marijuana is classified as a Schedule I substance. With Schedule 1 substances, the federal government assumes no medical value and abuse. The penalty for trafficking a Schedule I substance can be many years in jail. With marijuana, larger quantities bring you more than 10 years in jail and 1 kg or less, not more than 5 years.

So, if you were traveling from Cape Cod Massachusetts to the island of Nantucket Massachusetts, you need to be aware of Schedule I. You can see below that in Nantucket Sound, you go in and out of legal territory:

                                                                                                                                                                                                                                                                                                                                                                                                                                        While these surreal circumstances would end if the federal government continues to reclassify marijuana, much more is at stake.

Marijuana Regulation

Perhaps entering a road to legalization, observers say the process will be long. However, we’ve taken the first step with the DEA (U.S. Drug Enforcement Administration) saying it will reclassify weed to Schedule III.

Still, scientists, businesses, and consumers will see the difference. Reclassification opens the door to the rigorous medical research that had been impossible with a Schedule I substance. It also facilitates the tax deductions that all businesses claim. However, cannabis needs Congress to pass the SAFER Banking Act (Secure And Fair Enforcement Regulation Banking Act) for access to normal banking services. Only then can businesses switch from cash. They won’t need armored cars to transport millions in $20 bills for paying bills and wages and taxes.

Our Bottom Line: Marijuana Externalities

We could say that an externality is a ripple. It identifies the impact of an activity or agreement on a third, uninvolved party. The negative externality of playing loud music in a dormitory is a distant individual doing poorly on an exam. By contrast, quality teaching can create an innovation’s spillover far from the classroom.

For marijuana, the following Pew graphic suggests marijuana’s externalities:

My sources and more: Thanks to Slate Money for inspiring today’s post on marijuana regulation and then to this article for the facts. Completing the picture, Pew Research conveyed public opinion.