How cannabis legalization in America affects the economy

Cannabis legalization brings profit and the economic benefits have been apparent as the first U.S. states have moved to change their legal positions. Legal cannabis could mean a big boost for state economies and federal governments. It can be assumed that cannabis generates revenue from taxes on its sale. While no one likes to pay taxes, countries that legalize cannabis are turning a high profit.

Looking at cannabis legalization in America as a whole, some of the companies involved are already big corporations that generate multi-million dollar profits for the economy.

Currently, the global legal cannabis industry is growing so much that Grand View Research predicted that this market will be worth $66.3 billion by the end of 2025. A successful campaign for cannabis legalization in America will help drive the global market.

Curating quality information on only the most promising cannabis companies and the most influential investors, Hemp.im allows you to save time as you stay on top of the latest trends in this dynamic industry of cannabis.

Cannabis legalization in America generates new jobs

Cannabis legalization in America was a huge boom for the country. Forbes called it “a huge job creator,” and CNBC stated that the legal cannabis industry is “the fastest-growing job market in the U.S.”

Working in the cannabis industry is not just about working with cannabis. Although there are of course jobs related to growing, trimming, packing and selling cannabis flower, there are also “ancillary jobs” such as selling equipment like vaporizers, rolling papers, and bongs.

Additionally, there are also jobs for a long list of niches including accountants, managers, salespeople, consultants, advisors, security guards, graphic designers, and programmers.

Cannabis generates large tax revenue

Taxes are also part of cannabis legalization. No one likes to pay taxes, but countries that legalize and tax cannabis are reaping millions of dollars in revenue from sales taxes and sales licenses.

Whether you are for or against cannabis legalization in America, it cannot be denied that taxes generated by the cannabis industry can be used to finance important social aspects.

For example, in the case of Colorado, the state government has established a “Cannabis Tax Fund.” The fund is to be used in more than 60 programs addressing a range of issues facing society, such as mental health, education, and the environment.

Since Colorado was the first state to legalize cannabis for recreational purposes, the state has already achieved more than $1 billion in cannabis tax revenue and is likely to receive even more in the coming years.

From the fund’s budget, 16.4% of the revenues were allocated to educational initiatives, and 12.5% were spent on the construction of schools under the Building Excellent Schools Today (BEST) program. Cannabis legalization in America not only creates jobs but also shifts illegal sales to the legal market, bringing revenue to governments instead of illegal dealers.

Legalization of cannabis reduces the abuse of other drugs

An important factor in considering the cannabis legalization in America is that not all substances classified as drugs are the same. Different drugs have different effects and different levels of safety and the side effects of cannabis use are negligible compared to the effects of opioids and other legal drugs such as alcohol and tobacco.

This is an important fact to keep in mind, as the data shows that once cannabis is legalized, the use of other drugs is actually decreasing. For example, in states where cannabis is legal, the number of prescriptions for opioid painkillers and alcohol sales have decreased.

According to a survey of 2,897 patients using cannabis for medical purposes, the vast majority of patients reported that cannabis provides the same relief as other drugs but does not cause adverse side effects. 97% of respondents also “strongly agreed” that they were able to reduce their opiate intake when they used cannabis.

Cannabis legalization in America will help decrease alcohol consumption

Furthermore, when cannabis is legal for medical or recreational consumption, alcohol consumption may fall by 15-20%.

Now you can say, “well, what’s the difference? You’re just replacing one drug with another,” and in a way, you are right.

Harmful alcohol consumption costs the U.S. more than $223 billion a year, and every year around 42,000 people lose their lives in the U.S. due to the misuse or the overdose of opioids.

The United States is currently struggling with an epidemic of overdosing and legal cannabis is a safer alternative for people who take opioids.

Although cannabis legalization in America is still a crawling subject, it is highly unlikely that the negative side effects of cannabis use are significantly less than the damage caused by opioids and alcohol.

The safety profile of cannabis is even higher if you look at cannabidiol (CBD.) CBD already shows great potential in the fight against alcohol and opioid addiction and is not psychoactive or addictive, so it can be a safe alternative to legal drugs such as alcohol.

__

(Featured image by Rick Prostor via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Fakty Konople, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.