Ten Markets That Got A Fresh Start After Cannabis Legalization
With legalization around the country booming, many skeptics find themselves defeated. Legal cannabis brought many benefits — and most of them to the economic markets. Let’s take a look.
1. Retail Market
After Colorado passed Amendment 64, retail stores popped up in neighborhoods, offering various cannabis products to anyone over 21. In 2016, the retail cannabis market generated around $200 million in state tax revenue and license fees. Impressive, huh? However, this number does not include additional revenue from local taxes and fees which helped to cover law enforcement, regulation, and education costs.
2. Job Market
The economy is undergoing a massive shift. Cannabis entrepreneurs created new jobs and reinvented old ones. Cannabis cuisine, shop design, legal industry — overall employment has significantly grown since the introduction of legal cannabis.
Plenty of cannabis lovers travel to legendary weed destinations around the country, contributing to the states’ tourism market. In 2015, Colorado attracted 77 million visitors and got $19.1 billion. Yep, that much.
4. Criminal Justice
Many skeptics and critics suggested that cannabis legalization would only worsen criminal rates. However, the legal market proved to be an active opponent of the black market, fulfilling 70% of the cannabis demand. Furthermore, a number of cannabis-related court cases have been steadily decreasing, saving a lot of taxpayers money. Law enforcement got an opportunity to focus on more serious crimes.
Kids can see a positive impact of legal cannabis. Education is one of the fields that strongly benefit from legalization. Colorado schools, for example, received state funding of $80 million through Building Excellent Schools Today program and were able to improve infrastructure and technology.
Banks are known for their conservative position when it comes to cannabis money. Now things are all the way round — more and more banks recognize the benefits of working with the industry, giving loans and stimulating the growth of the businesses around the states.
7. Stock Market
Cannabis firms are now public which means that they offer stock shares to investors. With legalization unfolding in many states, the stock markets are blooming as well, adding over $19 billion to cannabis-related enterprises.
8. Real Estate
Legal cannabis made property values rise, and the commercial real estate market is developing around the country. The industry needs retail shops, and retail shops need a place. See the logic?
9. Prescription Drugs
Legal cannabis is a primary cause of the reduction in prescription drug use. Studies show that legal states saw Medicare prescription reduction for drugs for conditions treatable by cannabis. Opioids use in legal states is also dropping — and for good.
The last but not the least, the agricultural sector is getting a second life. Demand for cannabis has increased which led to the emergence of new jobs and use of advanced technology in the growing process. Legal cannabis is a reason why the weed becomes less dangerous and cleaner — the legalization brought stricter regulations on the growing, pesticide usage, water pollution, and land-use laws. In other words, cannabis legalization is helping the environment. Yep.
The Bottom Line
Cannabis legalization had a positive impact on overall economy and employment in the legal states. If federal prohibition comes to an end, who knows what lies ahead. Let’s hope it finally happens.
This post is based on this material.
(Sweedsy in no way encourages illegal activity and would like to remind its readers that marijuana usage continues to be an offense under Federal Law, regardless of state marijuana laws. To learn more, click here.)