Marijuana is the most commonly used illegal drug in the United States. Although it is illegal, the market size is estimated to be in huge numbers. Countries around the world have begun to legalize marijuana. In the United States, two states have recently legalized recreational marijuana use. An analysis of research into the marijuana market proves that legalizing marijuana would create many positive externalities for society as a whole. Legalizing marijuana would allow our government to regulate and use the industry to make financial profits that could be used elsewhere. In addition, the economy would also benefit from the arrival of new employment opportunities and “spinoff” industries associated with drug legalization. Other positive externalities would be the elimination of unnecessary regulatory and legal systems based on prohibition. Marijuana, also known as “devil’s weed,” is considered just as dangerous as cocaine or heroin. However, despite the dangers associated with it, marijuana has been used for over 10,000 years. It was originally used in China, Europe and Africa for recreational and medicinal purposes. Marijuana then spread to the New World where it became a major cash crop, along with tobacco and cotton. In the early 1900s, it was the drug of choice among American youth until it was banned in the 1930s. Marijuana became an illegal Schedule I drug under federal law, classified alongside harder, more addictive drugs by the United States Drug Enforcement Agency. However, in recent years, 20 of our 50 states have legalized medical marijuana. Additionally, Washington DC and Colorado have legalized the recreational use of marijuana. And so, ...... middle of paper ...... is technically illegal, but in certain situations consumption is permitted. Amsterdam is famous for its cafes where you can sell up to 5 grams of marijuana, generating tons of revenue. Contrary to current rumors, Amsterdam has a lower crime rate than any major American city. Currently, the United States faces conflicting beliefs regarding recreational marijuana use. Two states have legalized marijuana and regulate it the same as alcohol, while the rest of the country considers possession a "misdemeanor." In theory, economic factors appear strongly in favor of legalizing marijuana. Yet near-term marijuana legalization across the country seems unlikely due to the nation's awareness of recreational marijuana use. Yet, in the long term, we must continue to recognize that the benefits of legalizing marijuana far outweigh the costs..