The Economic Benefits of Weed Legalization
There used to be a lot of negative stigma around marijuana use. Although medical marijuana programs existed in some parts of the world and many users found using marijuana to be highly beneficial, it was still seen as nothing more than an illegal substance by many people. However, weed legalization has changed many things. Not only is marijuana more accessible and accepted than ever, but there are many economic benefits of weed legalization.
The legalization of marijuana spread slowly across the United States. Medical marijuana became legal in California in 1996, but it wasn’t until the 2010s that most states started to follow suit. Colorado and Washington became the first states to legalize adult-use marijuana, allowing anyone 21 or over to buy marijuana products for any purpose. There are now 11 legal marijuana states and 33 states where medical marijuana is legal.
Meanwhile, marijuana became legal across Canada in October 2018. Although there are still federal and provincial laws on who can use it and how you can use it, marijuana is now more accessible to adults than ever. Anyone of legal age in their province can now legally buy all kinds of marijuana products online or in physical cannabis stores.
These changes aren’t just beneficial to consumers and medical marijuana patients- they also have various economic benefits. From increased tax revenue to new business opportunities, the legal marijuana industry has had all kinds of economic impacts in these countries, as well as others. Here are some of the most notable economic benefits of weed legalization.
Boost In Tax Revenue
One of the most obvious economic benefits of weed legalization is that it can bring in plenty of revenue in taxes alone. Not only are marijuana products subject to regular sales taxes, but they also have an extra excise tax. As such, legal sales of marijuana can generate new money for local and federal governments and spur economic growth.
In the first five months of cannabis legalization in Canada, cannabis taxes produced $186 million for provincial governments as well as the federal government. Although taxes vary between provinces, excise taxes generally came to about $1 per gram with 25% going to the federal government and 75% going to the province.
Marijuana sales in the United States have also caused a boost in tax revenue for various states. For example, marijuana tax data from the Colorado government shows that the state has brought in over 1.4 billion USD from marijuana taxes and licensing fees. What’s more, these figures have grown each year from 67.5 million USD in 2014 to 302.4 million USD in 2019.
Along with a boost in revenue from marijuana sales, the legal marijuana industry can also generate tax revenue in various other ways. New marijuana businesses can boost business taxes and property taxes whereas the influx of new jobs means more income tax for the government. The ability to shut out the black market and gain tax revenue from the industry was a major factor in the decision to make marijuana legal, and more states and countries will likely follow suit in the future.
New Business Opportunities
The thriving legal marijuana industry has also created all kinds of new business opportunities for aspiring entrepreneurs. Many savvy business people who want to get involved in an exciting and fast-rising industry are now getting involved in the marijuana industry, especially as there’s so much room for growth.
The demand for pot means that cultivation businesses, stores, and dispensaries are now in high demand. Other types of businesses such as packaging companies, testing facilities, and manufacturing firms also help the ecosystem. Although business owners must go through a tricky licensing process to start a marijuana business, it can pay off big time in the long run.
Businesses dealing directly with the cultivation, manufacturing, and sale of marijuana aren’t the only option either. There are also many new marijuana ancillary services. Since the marijuana industry is still fairly new and confusing, there’s a demand for marketers, lawyers, real estate agents, and various other services targeted at marijuana businesses.
There are also plenty of opportunities in related industries. For instance, entrepreneurs who are interested in the cannabis industry but don’t want to go through the tricky licensing process might find it easier to start CBD businesses or even marijuana merchandise stores. Whichever way, the growth of the legal marijuana industry has brought about many new opportunities for entrepreneurs and businesses.
Creating New Jobs
Of course, another major economic benefit of weed legalization is that it creates many new jobs. The emergence of an entire industry stimulates the job market significantly. Tons of new businesses have popped up and, as the demand for marijuana grows, more marijuana businesses will emerge. As these businesses emerge, so will new jobs.
A recent report found that the marijuana industry looks like the fastest-growing job market in the country. In 2018, the industry created 64,389 new jobs covering both recreational and medical marijuana-related roles. This was added to a total of 296,000 marijuana-related jobs in total, and there are likely even more now.
Similarly, the Canadian cannabis industry has created many new jobs for residents. A report found that 9,200 people were working in the cannabis industry as of the 2019 fiscal year, up from 2,630 in the 2018 fiscal year and 1,438 in 2017. The number of companies in the industry also grew significantly.
A young and thriving industry is great news for the economy. As more marijuana stores and dispensaries open, more jobs are created and more people can contribute to the economy. What’s more, there are various other roles related to the industry, including those working in cultivation, packaging, and all kinds of marijuana ancillary services.
New Investment Opportunities
One of the great economic perks of the legal marijuana industry is that anyone with enough money can profit from it. The influx of new marijuana businesses and the rapid growth of the industry has brought with it many exciting new investment opportunities for eager investors to add to their portfolios.
It’s currently difficult for investors to invest in marijuana businesses in the United States since marijuana is still federally illegal. However, Canadian cannabis stocks have been a godsend to many investors around the world who want to cash in on the industry. There are now plenty of interesting marijuana stocks to invest in.
Although investments are always risky, the growth of the industry has already led to hefty profits for investors. The Motley Fool noted that investing in Aurora Cannabis in 2016 would have led to a 2,000% return for investors by 2019. An investment in Canopy Growth Corp would have yielded a whopping 3,500% return.
While Canadian marijuana stocks show some of the most promising returns, there are also interesting marijuana-related stocks across the world. For instance, GW Pharmaceuticals is a UK-based company focusing on cannabinoid-based medicines and has become one of the most interesting stocks for marijuana investors. Anyone with enough money to invest should look into some of the leading marijuana stocks for summer 2020.
Boost In Tourism
Legalizing weed and creating a legal marijuana industry also has a positive impact on other industries. For instance, take the tourism industry. Smoking marijuana is still illegal in many countries (as well as many parts of the United States). As such, locations that allow adults to legally smoke weed are now prime spots for tourists who want to partake.
Marijuana having an impact on tourism is nothing new. Amsterdam is one of the biggest tourist destinations in the world, largely for the city’s laidback restrictions that allow tourists to try marijuana in cafes across the city. Now, Canada and the United States have the potential to take over as the most attractive destinations for tourists looking to smoke weed.
A New York Times article from 2019 noted that cannabis tourism is on the rise in the United States, especially in states such as Colorado and California. Not only can tourists legally buy weed in these states, but they can also check out cannabis bus tours, cannabis lounges, and various other fun touristic activities related to cannabis.
Tourists in Canada can also buy marijuana from stores across the country, giving many international tourists a new reason to visit the Great White North. Although COVID-19 has temporarily stunted the tourism industry, this is another economic benefit of marijuana legalization that’s likely to grow as time goes on.
Reduced Expenses On Law Enforcement
Many of the economic benefits of weed legalization revolve around how it puts money back into the economy. However, it also helps by reducing government expenses in other areas. For example, by making marijuana legal, the government can spend less money on law enforcement related to cannabis.
An ACLU report noted that enforcing marijuana law costs the United States $3.6 billion a year. What’s more, these costs are largely unjustified as they don’t reduce the use or availability of marijuana. States are beginning to take notice and many have legalized or decriminalized marijuana.
Legalization doesn’t necessarily mean that costs are reduced. For instance, in 2017, the Canadian government spent $274 million on efforts to deter drug-impaired driving. Plus, other marijuana laws must still be enforced, such as ensuring that marijuana doesn’t cross country borders.
Nonetheless, weed legalization means that there are fewer unnecessary laws to be enforced and that expenditure on marijuana law enforcement can go to better use. Keeping innocent people out of jail and allowing adults to use weed responsibly means fewer resources wasted in the long run.
Where To Buy Weed
One of the great things about weed legalization is that it’s now easier than ever for consumers to get the products they need. Whether you want to try marijuana for recreational or medical purposes, there are plenty of cannabis stores and dispensaries offering the products you need. It’s also incredibly easy to buy weed online.
BudExpressNow provides a wide range of marijuana products available for delivery all over Canada. Orders are sent out safely and discreetly so you can order with peace of mind. You can also find great prices on everything from marijuana strains to edibles to CBD products. Here are some of the best types of marijuana products to check out.
Cannabis is available in a wide variety of strains. Indica strains are ideal for users who want a more relaxing and body-focused high, sativa strains are recommended for a more stimulating and head-focused high, whereas hybrid strains are the most balanced and versatile strains.
Concentrates are a great choice for users who want something even stronger than weed. Whether you prefer Shatter, Hash, Budder, or Wax, these products contain extra-high levels of THC and even a fraction of a gram will give you a sensational high. You can smoke them with weed, vape them, or use them with a Dab Rig for an extra potent high.
Edibles are marijuana-infused food products that have a reputation for delivering some of the most intense psychoactive effects. Edibles take around 30-90 minutes to kick in, but when they do, you’ll feel the effects for anywhere from 4-12 hours. They can offer an exceptional recreational high as well as providing long-lasting therapeutic relief for many symptoms.
Tinctures are liquid cannabis products that offer an easy and convenient way to get the effects of weed. You can apply a small dose of THC Tincture under your tongue and hold it there to absorb the cannabinoids into your body. You can also use CBD Tinctures if you’re looking for non-psychoactive effects.
From increasing tax revenue to creating new jobs to stimulating tourism, there are many economic benefits of weed legalization. Many of these have already been seen in countries such as Canada and the United States and the benefits will likely become even clearer as time goes on.
There are also various day-to-day benefits of weed legalization. Most importantly, consumers can now get the products they want when they want them. If you’re looking for high-quality marijuana in Canada, you can buy it online quickly and easily at BudExpressNow.