The Economic Advantages of Legalizing Marijuana
As more states legalize marijuana (for medicinal, recreational, or both purposes), the impact has already been enormous. The legal changes have produced a booming industry of legal cannabis businesses, including those dedicated to researching and developing cannabis-based medical treatments and those engaged in marijuana distribution and cultivation. Over half of the states in the United States have medical marijuana legislation in place, and sixteen states have also legalized specified amounts of marijuana for recreational use.
What are the economic benefits of legalization?
The economic benefits of legalizing marijuana have been evident since the first states changed their legal status. In general, legal marijuana might significantly boost state economies and significant revenue for both the state and federal governments. We’ll examine several of the most significant economic benefits of legal marijuana below.
Tax Revenue Impact
Colorado collected more than $302 million in marijuana-related taxes and fees. The Massachusetts Cannabis Control Commission stated that in the first year of operating marijuana businesses, gross sales totaled $393.7 million. According to an estimate by cannabis analytics firm New Frontier, federally legal marijuana may produce an additional $105.6 billion in federal tax revenue by 2025. The Institute of Cannabis Research at Colorado State University-Pueblo recently determined that the legal cannabis sector contributed more than $80.8 million to the local economy in 2017.
Income And Employment Opportunities
According to research conducted by RCG Economics and the Marijuana Policy Group, legalizing recreational marijuana in Nevada may support approximately 41,000 employment through 2024. According to the ICF analysis, recreational marijuana sales will create at least 81,000 additional direct, indirect, and induced jobs in California. Additionally, it forecasts an increase of at least $3.5 billion in overall labor income. According to New Frontier’s analysis, countrywide legalization might create 1 million jobs by 2025. An excellent example is this dispensary Northampton based, which provides legitimate employment to the community.
Opportunities for Investment
Legalizing marijuana has the potential to provide enormous economic benefits on both a local and national scale. While marijuana continues to be illegal on a federal level, investors are finding it difficult to benefit from the industry’s rapid growth and expansion. Suppose marijuana is legalized on a national basis. In that case, marijuana companies will be able to list their stocks on all U.S. exchanges, increasing liquidity and providing access to a broader range of investor groups. Many of the most successful companies in the early days of legal cannabis were situated in Canada or other nations.
Money Saved
When analyzing the economic benefits of legal marijuana, it’s crucial to consider both the money that may be saved and the revenue that could be earned. The legalization of marijuana may also assist medical users of marijuana-based goods to shop here or wherever they want for their medication. This may not appear good news for overall tax collections or marijuana businesses wanting to maximize profits. According to a 2013 analysis by the American Civil Liberties Union, the costs were around $3.6 billion per year at the time.
Conclusion
Across the nation, there is strong opposition to marijuana legalization. Critics point to the possibility of increasing homelessness or youth drug usage, decreased property values, and more. Some oppose changing marijuana’s regulatory status solely because it implies disrupting the status quo. All of these factors make it unlikely that marijuana will be legalized nationally very soon. However, as more states decriminalize marijuana use and the economic benefits of a legal marijuana economy become apparent, there are compelling reasons to contemplate nationwide legalization.
