On October 17, 2018, Canada legalized the cultivation and sale of cannabis nationwide. This new law comes with downsides, of course — marijuana carries long-term health risks and DUI and DWI cases may increase — but a lot of upsides, too. Here’s a list of some of the economic benefits, based on the realities of various states in the USA.
The legal marijuana industry in Colorado created more than 18,000 new full-time jobs in 2015 alone.
More state and federal tax revenue
As of September 2015, weed in Colorado was generating almost double the amount of tax revenue when compared to alcohol ($70 million to $42 million). In 2016, Washington made over $250 million in tax revenue, contributing to one of its most successful fiscal years. The cultivation and sale of recreational marijuana in Canada is estimated to generate around $8 billion per year. If the market was to be taxed similarly to Colorado (roughly 25%), that would equate to $2 billion dollars in untapped tax revenue.
Increased demand for other businesses
Legal marijuana growers need physical goods, such as warehouse space, lighting and irrigation equipment, and local services, such as contractors, lawyers, and bookkeepers meaning other industries get a boost from marijuana legalization.
Increase in new businesses and innovation
There are countless innovative directions that cannabis can take as a legitimate business, arguably even more than alcohol. For example, MJ Freeway is an innovative software solution for the marijuana business, with its “seed-to-sale” tracking software aids cannabis companies with point of sale, inventory tracking, manufacturing, and cultivation management; it was named on the INC’s 5000 fastest growing companies list in 2015.
Also, companies like Leafly, the internet’s largest cannabis information resource, with over 5 million site visits and growing. They have an incredible database of information on strains and their effects on you, 100s of stories and articles about cannabis worldwide and a web app to find your nearest dispensary. Snoop Dog even founded his own “weed-for-uber” delivery and sales service, Eaze, which aims to have your weed delivered to your door in minutes!
Generally, the economic benefits of this law mainly revolve around two factors: Tax Revenue and Income & employment.