The Economic Benefits of Legalizing Marijuana
Marijuana initially saw its way into mainstream light for its medicinal benefits. Before recreational use, states were legalizing marijuana for medicinal purposes. The sweet leaf plant of the world had many advantageous health benefits. It seems like every day there is a new medical discovery linking the benefits of marijuana to an illness or disease. Yet with time, practice, and openness, cities, states, and countries found that the legalization of cannabis had other benefits. Most notable of which would be the economic benefits of legalizing marijuana. As a result, more and more states moved towards legalizing marijuana for recreational use to rake in profits. As it turns out, you legalize one green to bring in another. So exactly what are the economic benefits of legalizing marijuana?
One of the benefits of legalizing marijuana for recreational use is to take advantage of the sweet leaf capital. That is the direct cause and effect of cannabis legalization. Legalization presents states and their constituents with many business opportunities. For instance, people can start to invest in marijuana dispensaries, which are the go-to retail stores for marijuana purchases. They can also invest in marijuana tech, which would be any sort of technology or mobile app that facilitates the production or sale of marijuana. There’s a large spectrum of options and possibilities to explore. Because the marijuana industry is so new, and recent, there haven’t been a lot of investors that have exhausted every effort out there.
Investment in cannabis has grown in both momentum and volume. Today, there are several publicly traded marijuana companies listed on stock exchanges, where any investor can purchase equity. The cannabis industry continues to gain fandom and popularity. All while remaining illegal on the national level, which only leaves many people fantasizing about the opportunities if it were to ever be legalized nationwide.
Besides investment into the cannabis business, and purchasing cannabis stock, the legalization of marijuana does set forth other fortuitous benefits.
As it stands, marijuana legalization and the impact it has had on the state tax revenue have been higher than expected. The numbers are not promising, they’re staggering. We’ve seen it in Colorado, Washington, and Illinois where tax revenue outpaces liquor. A reason why is the record sales that the marijuana industry in its entirety brings in on a yearly basis. In Illinois alone, marijuana sales set yet another record high. In the month of 2021, the state of Illinois brought in more than $150 million worth of recreational and medical cannabis sold. That’s in one month alone. As for the entire United States, sales are expected to increase from $12.2 billion in 2019 to $31.1 billion by 2024.
Coffers being flush with Sweet Leaf Capital is the main reason why many states opt for the move towards legalization. There is no hiding just how much money marijuana brings in, and the different opportunities that money can provide.
Finance and Lending
More money equals more opportunities for people to receive financing and funding. A booming industry attracts the eyes of many investors, institutions, funds, and anyone who is looking for an entry into that market. With the emergence of so many different businesses in the cannabis industry comes the need for affordable credit to brands and dispensaries. For instance, an investor looking to invest in and opening their own marijuana dispensary will require the start-up money to kickstart that business for him. This could see the introduction of cannabis real estate loans, where applicants can take out a loan to finance the underlying real estate of their cannabis business.
However, cannabis businesses are wide-ranging and varying, so the loans don’t necessarily have to stop there. For instance, those that work in the manufacturing aspect of the cannabis industry will find the need to receive financing in terms of cannabis equipment. Cannabis equipment financing will help bolster the manufacturing industry as a whole, and inject new life into that subset of the economy. Whether it’s manufacturing, or cannabis real estate loans, the point is more sweet leaf capital for the economy will lead to more growth, which will ultimately lead to more work opportunities.
Income and Jobs
The first line of benefits comes at the ground floor. In the case of cannabis, the ground floor of economic stimulus and benefits will be seen at the dispensaries and marijuana shops. Ultimately, those types of businesses will be the first to pop up because of the ease of opening and operating, and because of the need to meet the roaring demand that has just been let out at the gate.
With that being said, the rise in dispensaries and retailers should have an immediate impact on employment because of the need for workers in those shops. However, down the line, cannabis legalization will show an impact on the overall job sector, by achieving and maintaining a steady job growth year in and year out. Looking at the case of states like California and Nevada where legalization has been established, the data and statistics already exist, the economic impact has become more measurable as the sector has grown with time.
However, a lot of cannabis research hubs and think tanks have lamented the positive employment impact of legalizing marijuana. Leafty, a cannabis information hub, says that the cannabis industry can create up to 211,000 jobs in America. This number of jobs exceeded that of coal mining (52,000) and textile manufacturing (112,000) in the few years after cannabis legalization.
Any new industry that gets latched on to an economy is bound to increase that economy and grow it. However, an industry that has, for decades, been booming underground, to finally come above ground and see the light through legalization, is a different story. Cannabis has always been a prospering industry. The issue was the state’s refusal to push it below ground, instead of legalizing and regulating it. This new drive towards legalization has made the benefits of the latter abundantly clear. This is why the economic benefits of marijuana, although several, have only just begun to blossom.