Who would have figured that cannabis could assist a country’s economy in the 21st century? Modern times have been unpredictable and unprecedented. With the pandemic hitting worldwide in early 2020, several industries have either shut or filed for bankruptcy. However, the situation was a bit different in the United States. In November 2020, the presidential elections extracted a significant amount of attention. Since the podium of opportunity was immense, officials took many other essential decisions as well.
Late last year, most of the states held voting to determine medical cannabis’ future. It was quite surprising to see four of the states, South Dakota, Arizona, Montana, and New Jersey opting to make medical cannabis consumption legal. Moreover, Mississippi also voted in favor of the wonder drug. Several other states have hopped on the bandwagon, favoring medical marijuana for recreational and medical use. Such decisions have spurred an uproar, spawning more and more manufacturers. This will not only grow the marijuana industry but also assist the current economy because of multiple taxes.
Due to the pandemic’s hit on the hospitality and tourism industries, around half of the states have placed new marijuana laws on the books. Consequently, recent advancements have already made it clear about how cannabis could impact the dying economy. This implies that federal governments and states can experience a big economic surge in the coming months. Read on to discover the essential economic benefits of cannabis.
- Scope For Investment
As already discussed, several companies and manufacturers have been producing CBD-infused products, which is another byproduct of cannabis. Since much of its accomplishment comes through its medical benefits, legal identity is yet another factor. Legal cannabis poses the potential of considerable benefits to economies on a national and local scale. But, since marijuana remains illegal on federal grounds, it is challenging for manufacturers and investors to make the most of the industry’s growth.
The amount of cannabis-related organizations trading stock exchanges is minuscule. Since investors choose to work with OTC (over-the-counter) exchanges, most successful companies in the initial legal cannabis space have been in countries like Canada. One can often look up to the figures and results of Getkush Online Dispensary Canada to understand the substance’s economic potential.
- Tax Revenue
Recent sales in Washington and Colorado have resulted in significant tax revenues. In 2019 alone, Colorado made around $300 million in fees and taxes on recreational and medical marijuana. Furthermore, sale figures in the state totaled beyond $1.7 billion.
Looking at the overall sales, the US experienced a sale of around $12.2 billion in 2019. As a result, experts estimate that such growth can witness a rise up to $31 billion in 2024. Another talking point that not many would argue against is the supplement’s medical benefits. Even though cannabis has been in practice for thousands of years, scientists and researchers have only recently conducted research and analysis.
Should cannabis gain a legal identity on federal grounds, this dying economy’s benefit can be fundamental.
- Jobs, Income, & Opportunities
Setting up cannabis dispensaries and nurseries are the initial steps for states that voted for legal cannabis. Such actions will not only set the figures rolling for financial activities but also create multiple jobs. When it comes to states like Nevada and California, where cannabis infrastructure already exists, the economic impact has been quite quantifiable, with the sector maturing every year.
One of the studies by RCG Economics and Marijuana Policy Group says that legalizing cannabis in Nevada can create more than 40,000 jobs by 2024. It does not end there. This could generate more than $1.7 billion in labor income. Meanwhile, another study by the ICF states that around 80,000 direct induced or indirect jobs in California. It can also experience an increase of about $3.5 billion in total labor income.
- Saved Economy
Considering the economic benefits of cannabis, it’s vital to think about a couple of factors.
- The money government can save
- The amount of revenue generated.
At this point, federal cannabis enforcement costs many billion dollars every year. One of the studies conducted in 2013 by the American Civil Union reported that the same year’s costs were around $3.5 billion per year. However, if more states legalize the substance, there will be a significant decline in the enforcement costs. Lastly, removing marijuana from the controlled substances list will lead to fewer incarcerations, fewer court cases, and eventually more saved money.
The Bottom Line
2018 was a significant year when the US President signed the Farm Bill, allowing hemp’s trade throughout the country. Currently, there’s ample heat against cannabis and its legalization. With a recent evaluation about the supplement’s medicinal potential, it is only a matter of time till we see it getting legal status. Besides, there is more to cannabis now. Since the drug poses several therapeutic benefits, it was one of the most consumed natural substances in 2020. And, such a fact has forced new organizations and manufacturers to enter the ongoing cannabis trade. In turn, it will only lead to a boost in the economy.