What are the benefits of legalizing marijuana? The tide seems to be in favor of legalizing. More states in the US continue to legalize the use of marijuana products.
The use of marijuana for medical and recreational purposes continues to rise. This is happening because people can now use these products without having to worry about breaking the law. Today pot is legal in about two-thirds of the states in the USA.
This tide goes beyond the USA. Luxembourg is set to become the first country in Europe to legalize the use of recreational marijuana. Cannabidiol is already legal in South Korea. South Africa seems eager to join the rest of the world in making marijuana use legal.
Canada is among the biggest Cannabis markets, and a simple search on vape Canada will present numerous sites selling pot products in this country. From a business point of view, the future looks bright for this industry and the country as a whole.
Here are 5 of the benefits of legalizing marijuana
1. It increases tax revenue
This is already apparent in states such as Washington and Colorado. In 2015, the taxes and fees collected after the sale of recreational and medical marijuana amounted to $135 million.
By 2018, this amount had risen to about 300 million dollars. In total, the legal marijuana industry generated over $10 billion in the US alone. It is projected that income from this industry in the US will rise to $20.1 billion. With increased revenue, it is only natural that the tax revenue will also increase.
As the Marijuana industry grows, it may indirectly lead to the growth of other sectors. Industries that stand to benefit from the growth of marijuana businesses include construction, financial institutions and software developers. With products such as vape pens, edibles, variety of Indica or Sativa dominant strains, it is clear that the industry has grown a lot in the past few years.
2. It creates jobs
To date, the Marijuana industry has generated about half a million jobs. According to projections, the jobs created by the marijuana industry will go up to a million as the demand increases. The jobs, in this case, are quite diverse. This starts right at the farms where weed is cultivated up to the shop where the end user buys it.
3. It saves taxpayers money
Well, controlled drugs take quite a chunk of taxpayers’ money. Enforcement costs add up to billions of dollars, and in 2013, just before the legalization of marijuana started taking place, the enforcement fees came to about $3.6 billion that year.
Legalizing Marijuana has reduced enforcement fees in the states where this product is legal. The fact that selling pot is considered illegal at the federal level means that there is still a cost associated with marijuana control. Legalizing marijuana at the federal level will considerably reduce enforcement costs and save taxpayers a ton load of money.
4. It opens up investment opportunities
Many investors have capitalized on the growth in this industry, and so far, the investors are happy. The marijuana industry is going to remain at the top in the list of best industries to invest in for some years to come. Legalizing Marijuana at a federal level could go a long way in increasing the investment opportunities in this sector.
The marijuana-related industries currently trading at the stock exchange are minimal in the US. There are more in Canada. Controlling the sale of marijuana limits the investment opportunities available to investors. Companies in this sector are not able to list stock on the stock exchange easily.
This increased liquidity, will without a doubt, boost the industry and lead to increased revenue, creation of more jobs, in addition to offering more investment opportunities.
5. It increases the quality of end products
This is great for the end user and the marijuana traders as well. In a legal market, it is easy to test for quality and set the standards that you want.
Weed suppliers can now ensure that they get nothing short of quality products as supplying sub-standard products will surely attract some form of penalty. Weed consumers also benefit, as suppliers will strive to bring quality products to attract more customers. The quality will also extend to medical marijuana.
The Marijuana business is booming despite the current federal limitations. In the present, the sale of Kush, Cannabidiol, among other Marijuana related products has led to the creation of jobs. This also opened up numerous opportunities for investors.
The jury is still out there as to whether legalizing the sale of marijuana at the federal level is the best thing to do. However, from a business point of view, legalizing marijuana at the federal level will come with numerous economic benefits. Unfortunately, there is no way of telling how this will negatively affect weed consumers and society at large.
Do you agree or disagree with me? Should more states and countries be legalizing marijuana? Leave a comment below and share your thoughts. Feedback is appreciated.
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Full time content marketing specialist. I’ve been closely studying the cannabis industry trends from quite some time. I have worked for various domains. When I’m not working, I like to work out, try new foods and play with my dog.