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 medicinal marijuana laws, and sixteen states have recreational marijuana laws.
What are the economic benefits of legalization?
Since the first states changed their legal status, the economic benefits of marijuana legalization have been obvious. In principle, legalizing marijuana might strengthen state economies and generate significant cash for state and federal governments. Here are some of the biggest economic benefits of legal marijuana.
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. It is estimated that federally authorized marijuana will generate an additional $105.6 billion in federal tax revenue by 2025, according to New Frontier Analytics, a cannabis analytics company. 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. Visit here to learn more about cannabis dispensaries.
Opportunities for Investment
Marijuana legalization has the potential to deliver huge economic benefits on a local and national basis. Because marijuana is still illegal on the federal level, investors are struggling to profit from the industry’s rapid ascent. 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.
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 cannabis products. According to a 2013 research by the American Civil Liberties Union, the annual costs were approximately $3.6 billion at the time.
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.