As more states legalize cannabis (for medical, recreational, or both uses), the impact has already been considerable. Legal cannabis firms, including those committed to researching and developing cannabis-based medicinal therapies and those engaged in marijuana distribution and cultivation, have sprung up as a result of the changes in the law. In the United States, medical marijuana is permitted in more than half of the states, while sixteen states have legalized small amounts of marijuana for recreational use.
What are the economic benefits of legalization?
Since the first states changed their legal status, the economic benefits of legalizing marijuana have been clear. Legalizing marijuana might strengthen state economies and generate significant income for both the state and federal governments. Below are some of the most important economic benefits of legal marijuana.
Tax Revenue Impact
Marijuana-related taxes and fees brought in more than $302 million in Colorado. According to the Massachusetts Cannabis Control Commission, gross sales of marijuana firms in the first year totaled $393.7 million. According to New Frontier, a cannabis analytics company, federally legalized marijuana may result in an additional $105.6 billion in federal tax returns by 2025 if it is widely authorized. According to the Colorado State University-Pueblo Institute of Cannabis Research, the legal cannabis industry contributed more than $80.8 million to the local economy in 2017.
Income And Employment Opportunities
Legalizing recreational marijuana in Nevada may sustain nearly 41,000 jobs by 2024, according to research produced by RCG Economics and the Marijuana Policy Group. According to the ICF estimate, recreational marijuana sales will generate at least 81,000 extra direct, indirect, and induced jobs in California. It also predicts a rise in overall labor income of at least $3.5 billion. According to New Frontier’s calculations, nationwide legalization might result in creating 1 million jobs by 2025. A good example are dispensaries in MA which also provide employment opportunities for the community.
Opportunities for Investment
On a local and global basis, legalizing marijuana has the potential to deliver huge economic benefits. Even though marijuana remains illegal on a federal level, investors find it tough to profit from the industry’s tremendous expansion and growth. Assume that marijuana is legalized across the country. Marijuana companies will be able to list their stocks on all U.S. exchanges in that instance, enhancing liquidity and allowing them to reach a wider variety of investors. In the early days of legal cannabis, many of the most successful businesses were based in Canada or other countries.
When weighing the financial advantages of legal marijuana, it’s important to consider both the money saved and the cash generated. The legalization of marijuana could also benefit medical marijuana users who are allowed to choose cannabis products for their treatment. The expenditures were roughly $3.6 billion per year at the time, according to a 2013 estimate by the American Civil Liberties Union.
Marijuana legalization is met with fierce opposition across the country. Critics warn that the bill could lead to an increase in homelessness or juvenile drug use, as well as lower property values. Some people are opposed to changing marijuana’s regulatory status since it would mean upsetting the status quo. Because of all of these issues, it seems doubtful that marijuana will be legalized on a nationwide level very soon. There are compelling reasons to consider nationwide legalization as more states decriminalize marijuana use and the economic benefits of a legal marijuana economy become evident.