Although the Presidential elections drew the most attention in November 2020, other decisions, too, saw implementation. Several states held votes for determining the legal marijuana industry’s future in one form or the other.
Pulling a leaf out of Colorado’s book- four states like New Jersey, Montana, South Dakota, and Arizona made curious decisions. And, these involved making marijuana consumption for recreational purposes. Mississippi also voted for allowing medical marijuana.
What’s surprising is that legalizing weed has some economic benefits. These advantages were apparent as the first states moved to change their legal positions. Overall, legalizing cannabis seems to bring a big push for state economies.
Also, it means big bucks for both the federal and the state governments in the best sense.
Some key benefits of legalizing marijuana are:
- Impacts Tax Revenue
The expected sales of cannabis in Washington and Colorado were better than expected. And, the best part is that these resulted in significant tax revenues.
Several cannabis products like concentrates, flowers, edibles like XO Nic Salt, chocolates, and cookies saw a remarkable increase. With the legalization, people saw an incredible rise in accessories like vape pens, cartridges, among others.
Studies show that in 2019, Colorado collected more than $302 million as fees and taxes on recreational and medical marijuana. Many people urge the legalization of cannabis on a federal level, knowing that it is worthwhile. It is because of the exceptional benefits to the economy.
A recent report shows that by federally legalizing the pot, economies can generate around 105.6 million as aggregate federal tax revenue by 2025.
- Jobs and Income:
Setting up dispensaries and marijuana nurseries would be the first step for states to vote for medical marijuana. Know that this would help in job creation and set the ball rolling for economic activity.
Ever since Nevada and California have begun setting up infrastructure for marijuana growth and sale, the economic impact is quantifiable. It is because the sector is maturing.
A recent report shows that nationwide legalization may generate around 1 million jobs by the year 2025. The jobs would arise from the growing industry. Also, there will be a greater need for workers in the market. They would need to farm, distribute, and sell marijuana-based products.
Furthermore, the legalization will benefit secondary industries, which aren’t directly involved in production and distribution. Software developers, construction companies, and financing services would help the most.
- Investment Opportunities:
Legal marijuana tremendously benefits economies on a national and local scale. It helps in securing investment portfolios of investors across the country. However, since marijuana is illegal on a federal level, investors find it difficult to capitalize on the industry’s growth.
Should weed find legalization on the national level? These surely would as weed companies would be free to list stocks on U.S. exchanges.
By doing this would enhance liquidity and open access to more investors. Also, as cannabis space growth continues, investors continue expressing keen interest in the industry.
The Bottom Line
While many people push back the idea of legalizing marijuana and criticize the same, know that the legalization isn’t far. The reasons mentioned above help in decreasing the likelihood of marijuana becoming legal at the national level.
It is because several states have moved to decriminalize pot in a myriad of ways. And, why not? The compelling reasons make the switch worthwhile towards nationwide legalization.