The impact has already been considered as more states legalize marijuana (for medical, recreational, or both uses). The legal changes have resulted in a thriving economy of legal cannabis enterprises, including those devoted to researching and developing cannabis-based medicinal therapies, as well as those involved in marijuana distribution and growing. More than half of US states have medical marijuana laws, and sixteen states have authorized certain 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 marijuana products have been obvious. In principle, legalizing marijuana might strengthen state economies and generate significant cash for state and federal governments. Some of the most major economic benefits of legal marijuana will be discussed in further detail further down on this page.
Tax Revenue Impact
In marijuana-related taxes and fees, Colorado collected more than $302 million. According to the Massachusetts Cannabis Control Commission, gross sales of marijuana firms in the first year totaled $393.7 million. New Frontier, a cannabis analytics firm, estimates that by 2025, legal marijuana may produce an extra $105.6 billion in federal taxes. According to the Institute of Cannabis Research at Colorado State University-Pueblo, 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 may sustain 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. It also predicts a rise in overall labor income of at least $3.5 billion. According to New Frontier’s estimate, nationwide legalization might create one million jobs by 2025.
Opportunities for Investment
Marijuana legalization has the potential to deliver huge economic benefits on a local and national basis. While cannabis is still illegal on a federal level, investors are struggling to profit from the industry’s rapid rise. Assume marijuana is legalized on a national scale. In that situation, marijuana companies will be allowed to list their stocks on all US markets, enhancing liquidity and giving them access to a broader spectrum of investor groups. In the early days of legal cannabis, many of the most successful enterprises were based in Canada or other countries.
Money Saved
When weighing the economic benefits of legalized marijuana, it is critical to consider both the money that may be saved and the revenue that could be made. Marijuana legalization may also benefit medical users of marijuana-based products from a cannabis dispensary. According to a 2013 research by the American Civil Liberties Union, the annual costs were approximately $3.6 billion at the time.
Conclusion
Marijuana legalization is widely opposed across the country. Critics object to the prospect of increased homelessness or juvenile drug use, as well as decreasing property values, among other things. Some people are opposed to changing marijuana’s regulatory status because it involves upsetting the status quo. All of these issues make it unlikely that marijuana will be legalized in the United States very soon. However, as more states decriminalize marijuana use and the economic benefits of a legal marijuana economy become clear, there are compelling arguments for national legalization.