It’s true that many Americans recognize marijuana as a drug with the potential to become legalized on a federal level, but most of these people don’t see the potential of marijuana from an economic standpoint. There are currently some states in the US where legal marijuana is sold by legitimate businesses, thus generating an unprecedented tax revenue for those states. However, for the majority of states in the U.S., this is simply not the case.

If you think about it, there are a number of important crops that we as a country depend on for both sources of food and revenue on a daily basis. While most Americans picture food like corn, soybeans, and wheat when they hear the name cash crop, as it turns out, marijuana falls into this same category. According to the Department of Agriculture’s production values of cash crops report from 2003 to 2005, marijuana has not only a high production value but also the highest at $35.8 billion. This is a remarkable figure considering the fact that marijuana is illegal in almost every state in the U.S.

Now that the issue of legalizing marijuana is on the forefront of our national agenda, it is an important time to predict the economic impact of legalizing the drug. For one thing, marijuana is a highly profitable product. Similar to alcohol, marijuana incites a high demand among those who choose to consume it. For this reason, it is likely that legalizing marijuana would bring about some positive economic feedback. However, this claim is not merely based on speculation as there is evidence from states like Colorado and Washington where the economic potential of marijuana is on full display. Reportedly, the state of Colorado pulled in “nearly $200 million in tax revenue during 2016” thanks to its astounding $1.3 billion in marijuana revenue. And this is not an isolated incident. In 2014, Washington state brought in more than $70 million in tax revenue during its first year of legalization. Moreover, the tax revenue generated from the legal sale of marijuana has led these states to use their new income in a number of beneficial ways. For example, in Pueblo County, Colorado every graduating high school student from the area will “receive a scholarship funded by marijuana tax revenue” that can be used at any local college. As one Pueblo County resident put it, “the money that is used to fund drug cartels is now being used to fund scholarships.” The states that have legalized recreational marijuana are raking in the economic rewards while other states sit idly by in a state of hesitation.

Their hesitation is not for a lack of reasons, however. One of the main concerns when it comes to legalizing marijuana is figuring out how to introduce the drug into the mainstream consumer market. One article co-authored by Jonathan Caulkins and Beau Kilmer was published in the journal, Addiction, and does a good job of touching on this issue. The article features a report identifying four separate economic aspects related to legalization including “which organizations are allowed to produce and supply the drug, the regulations under which they operate, the nature of the products that can be distributed and taxes and prices.” These are all very viable questions that deserve to be answered before any further decisions regarding legalization can be made. Perhaps one of the biggest issues that needs to be addressed is how marijuana will be marketed to consumers. Currently, there is a rather negative stigma surrounding marijuana and its users, which considering the fact that it has been illegal in the eyes of the government for eighty years sort of makes sense. Another problem with marijuana is that it is not an easy product to market. For one thing, it is a plant. Now think about the last time you saw a commercial or billboard advertising for bananas. You’re probably having a hard time thinking of one, and so are the legal businesses who want to manufacture and distribute marijuana to the masses.

In order for marijuana to be an effective consumer product, it must be represented in a way that is more commercially appealing. The situation with marijuana will most likely parallel the situation with alcohol following prohibition if it is ever federally legalized. What I mean by this is that it’s entry into the mainstream market will start out slow, but before long it will gain traction and acceptance from those who formerly opposed its legalization. However, in order for marijuana to really sell, it must first become transformed into a more consumer-friendly, recognizable product. Most Americans recognize what a beer can or wine bottle looks like, but I doubt as many would be able to identify the many different forms that marijuana comes in now. There needs to be a standard to what consumers can expect when they purchase marijuana, and whether that standard is a marijuana edible, or maybe even a marijuana beverage, that sort of commercialization needs to occur before any products can hit the shelves.