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In the United States, the debate about the legalization of marijuana is a hot topic that is widely deliberated every four years during national elections. Today, more than ten states allow the consumption of cannabis for medical and recreational purposes. Though cannabis is illegal at the national level, it is still the second most consumed substance after alcohol, further highlighting its popularity in the US and globally. Beyond providing relief for medical patients, it can bring immense economic gains to the US and other countries that legalize it. Read on to discover how cannabis legalization benefits the economy.
Creation of Jobs and Income
Unemployment is a big problem for both developed and developing nations. Countries like the United States spend considerable sums of money on unemployment benefits each year to support the growing number of unemployed graduates. However, recent research by New frontier data estimates that the legalization of cannabis could help solve part of this problem by creating up to 1.6 million jobs. States that legalized the drug in the November 2020 polls are already reaping the benefits by recording improved employment statistics.
The benefits and drawbacks of marijuana consumption are areas that still require further research. This gap creates job opportunities for researchers and data analysts to clear common misconceptions. Additionally, investors will need to engage law experts to help them comply with legal requirements in states that permit marijuana use. Furthermore, lawyers still have a significant role in putting pressure on other states to follow suit and legalize cannabis use.
Lastly, the establishment of cannabis dispensaries and nurseries such as Embarc, a martinez dispensary provides another avenue for employment creation. These outlets trade in a variety of marijuana products for both medical and recreational use. These online digital stores provide in-person and home delivery services, creating jobs for drivers and health specialists.
Raising Tax Revenues
Like all other marketable goods and services, marijuana has the potential to generate substantial tax revenue for states that legalize the drug. Federal legalization of the drug could raise billions more in tax revenue, thus improving the economic fortunes of many companies and citizens in the process.
Pandemics such as the coronavirus continue to put pressure on many economies in budget shortfalls and low tax revenue figures. As a result, such nations often result to domestic and foreign borrowing to supplement these budget shortfalls. Cannabis legalization can help to overturn the economic crisis most governments face today. Tax from cannabis nurseries, dispensaries, and distribution companies can reduce the need for borrowing, which can be costly in the long run.
Investment Opportunities and Higher Savings
Marijuana can offer plenty of investment and saving opportunities for countries that legalize it. Companies trading in marijuana products could be listed on public stock exchange markets. Such a move would allow both individual and corporate investors to capitalize on the high gains in the industry. According to Investopedia, allowing cannabis companies to trade freely on the exchange market could enhance liquidity, crucial for economic growth.
Most countries, including the United States, spend a lot of money enforcing rules that prohibit the use and sale of marijuana-related products. In some nations, these enforcement costs can reach billions of dollars each year. Removing cannabis from the list of banned substances provides an excellent opportunity for these countries to save on costs and redirect funds to more meaningful purposes. Lastly, clearing the use of marijuana for use in medical treatment would significantly benefit patients. Such patients would enjoy a low cost of treatment if cannabis treatment became legal.
Bottom Line
Though critics still point out the dangers of decriminalizing the use of cannabis, there are compelling reasons for more states to clear the use of marijuana. Today, more people get arrested for possession of marijuana than those who commit robbery with violence. Charging and detaining people arrested for cannabis-related offenses takes away a significant portion of taxpayers’ money. More importantly, decriminalizing cannabis use can help reduce racial profiling, which widens the economic disparities between the different races in most American states. A history of arrests from marijuana possession reduces the chances of people landing jobs and improving their livelihood.
