The impact of more states legalizing marijuana (for medical, recreational, or both) is already significant. Legalization has spawned a thriving economy of legal cannabis firms, including those committed to researching and developing cannabis-based medical therapies, as well as those engaged in marijuana distribution and production. Over half of the states in the United States have passed legislation legalizing medical marijuana, and sixteen states have additionally legalized marijuana in specific amounts for recreational use.
What are the economic benefits of legalization?
Since the first states legalized marijuana, the economic benefits have been clear. Legal marijuana, in general, has the potential to dramatically strengthen state economies and provide significant cash for both state and federal governments. Below, we’ll take a look at the most significant economic benefits associated with legal marijuana.
Tax Revenue Impact
Colorado revenue from marijuana-related taxes and fees totaled more than $302 million. According to the Massachusetts Cannabis Control Commission, gross sales of marijuana firms totaled $393.7 million in their first year of operation. According to a New Frontier analysis, federally legal marijuana may generate an additional $105.6 billion in federal tax revenue by 2025. The Colorado State University Institute Pueblo’s of Cannabis Research recently estimated that the legal cannabis industry contributed more than $80.8 million to the local economy in 2017.
Income And Employment Opportunities
According to RCG Economics and the Marijuana Policy Group, legalizing recreational marijuana in Nevada might result in around 41,000 jobs by 2024. Recreational marijuana sales, according to the ICF estimate, will generate at least 81,000 extra direct, indirect, and induced jobs in California. Additionally, it anticipates an increase in total labor income of at least $3.5 billion. According to New Frontier’s estimate, legalization on a national scale might create 1 million jobs by 2025. Legalization really worked on generating honest employment. A good example is this marijuana dispensary Northampton MA based which generates honest jobs for the community.
Opportunities for Investment
Marijuana legalization has the potential to produce enormous economic benefits both locally and nationally. While marijuana remains illegal at the federal level, investors struggle to capitalize on the industry’s fast development and expansion. Assume marijuana is legalized nationwide. Marijuana companies will, after that, be able to list their stock on all US exchanges, enhancing liquidity and opening up investment opportunities to a broader spectrum of investor groups. Many of the most successful cannabis businesses in the early days of legalization were headquartered in Canada or other countries.
When weighing the economic benefits of legal marijuana, it is critical to account for both the money saved and the cash made. The legalization of marijuana may also benefit medical cannabis users because they will get the best marijuana deals. According to a 2013 research by the American Civil Liberties Union, the annual cost was around $3.6 billion.
There is widespread opposition to marijuana legalization across the country. Critics raise concerns about the prospect of increased homelessness or juvenile drug use, as well as lower property values. Some opponents of modifying marijuana’s regulatory status do so only to avoid upsetting the status quo. These issues make it highly improbable that marijuana will be legalized on a national level in the near future. However, as more states decriminalize marijuana use and the economic benefits of a legal marijuana economy become clear, compelling arguments exist to consider nationwide legalization.