As more states legalize marijuana for medicinal, recreational, or both uses, the impact has already been huge. Legalization has spawned a thriving economy of legal cannabis firms, including those dedicated to studying and developing cannabis-based medicinal therapies and those engaged in marijuana distribution and production. Over half of the states in the United States have enacted 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 changed their legal status, the economic benefits of legalizing marijuana have been clear. Legal marijuana, in general, has the potential to greatly strengthen state economies and provide significant cash for state and federal governments. Below, we’ll evaluate several of legal marijuana’s most significant economic benefits.
Tax Revenue Impact
More than $302 million in marijuana-related taxes and fees were collected in Colorado. According to the Massachusetts Cannabis Control Commission, gross sales of marijuana businesses totaled $393.7 million during the first year of operation. It is estimated that federally legalized marijuana will generate an additional $105.6 billion in federal tax revenue by 2025, according to a report published by cannabis analytics company New Frontier. The Colorado State University Institute Pueblo’s of Cannabis Research has 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’s analysis, legalizing recreational marijuana in Nevada may support around 41,000 jobs through 2024. Recreational marijuana sales, according to the ICF estimate, will bring at least 81,000 new direct, indirect, and induced jobs in California. Furthermore, it anticipates a rise in total labor income of at least $3.5 billion. According to New Frontier’s estimate, legalization on a national scale might create one million jobs by 2025. A good example is Massachusetts dispensaries which provide honest employment opportunities for the neighborhood.
Opportunities for Investment
It is anticipated that legalization of marijuana will result in significant economic benefits on both a local and a national level. While cannabis remains illegal on the federal level, investors struggle to capitalize on the industry’s enormous development and expansion. Assume marijuana is legalized across the country. In that situation, marijuana companies will list their securities on all US markets, 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 based in Canada or other countries.
When weighing the economic benefits of legal marijuana, it’s critical to evaluate both the money saved and the cash made. Legalization may also benefit medicinal marijuana patients who shop for marijuana based products. According to a 2013 analysis conducted by the American Civil Liberties Union, the annual cost was around $3.6 billion at the time.
Marijuana legalization faces widespread resistance across the country. Critics warn of potential increases in homelessness and juvenile drug use, as well as lower property values. Those who oppose changing marijuana’s regulatory status do so merely to avoid upsetting the status quo. These issues make it highly improbable that marijuana will be legalized on a nationwide scale in the near future. However, as more states decriminalize marijuana use and the economic benefits of a legal marijuana economy become clear, persuasive arguments exist for nationwide legalization.