Economic Benefits of Legalizing Weed

The Economic Benefits of Legalizing Weed

There is much to be said about the economic benefits of legalized marijuana. Many economists across the country are touting the fact that legalized cannabis has been effective in bringing revenue to states while at the same time keeping costs down as cannabis businesses struggle to remain profitable. However, there are more to the benefits than simply the revenue figures. There are many jobs created and opportunities for employment that can only be offered to those who work in the cannabis industry.

 

The first benefit is obviously the increase in tax revenues. This money would not have been generated if sales were not legal. Any tax revenues that are raised through legalization are then used to fund other programs or initiatives that may be beneficial to the cannabis industry. This means a greater investment in education, research and development, and infrastructure in order to cultivate more crops and keep up with the demand that continues to grow in the United States and globally.

 

Another of the economic benefits is the creation of new jobs. While not directly tied to sales tax revenue, it is clear that legalization of weed creates more work opportunities for people with the labor force. Many farmers, lumberjacks, landscapers, programmers and others have traditionally had to rely on low-paying jobs with limited job security. With legalization, these people are now able to pursue careers in a wide variety of fields. Not only do they make a considerable income, but their services are needed across the board by the legal marijuana market.

 

Those with family businesses are especially helped by legalization. With families scattered across the nation, jobs are not always readily available and many business owners have had to abandon their businesses because of the increased tax revenue brought on by cannabis sales. By legalization, those who provide products and services for the cannabis industry no longer have to compete with black market money, creating more jobs and driving up economic growth throughout the state. These are both important benefits for the economy as a whole.

Taxation of cannabis continues to be a controversial issue in many parts of the country. Many states, such as Colorado, have legalized the production, processing, sale, and consumption of recreational marijuana, while others prohibit both. Tax revenues are expected to increase substantially as more Colorados, Alaska, and Massachusetts opt to legalize the cannabis industry. Opponents argue that taxing the cannabis market will ruin jobs and raise costs for cities, which then won't have the resources to properly police the illegal cannabis trade. The legalization of recreational cannabis also has the effect of removing an existing criminal justice problem without the need to build new institutions. This makes the legalization of recreational cannabis a step in the right direction in addressing drug addiction.

 

Besides the creation of new jobs and increased tax revenue, there are other benefits that are directly related to legalization. Taxes are expected to generate significant revenue for municipalities, which will allow them to construct new schools, police stations, and social services. Investors have seen great opportunities in the legalization of weed, and this trend is not likely to slow anytime in the near future. The argument that is often heard against legalization is that it will lead to increased crime rates. This is a valid argument, and it's one that law enforcement must deal with head on. However, there are other factors involved in the argument for and against legalizing weed.

 

The argument for legalization is that it would create jobs for people in the legal cannabis industry. The creation of new jobs would likely help solve the problems that come with a declining economy. If the product that is being produced by companies such as Hydroponic Leaf, Air Vaporizer, and others can be shipped across state lines, then jobs would likely be created across the board. Since much of the cannabis being consumed recreationally is sold outside of retail stores, this would open up additional investment opportunities. A legalization of recreational cannabis could also bring with it the ability to export products created by these companies and create an even bigger market.

 

Many national level politicians have discussed the benefits of legalization in various forms over the last few years. In recent months, President Obama has also stated his intention to legalize marijuana. With a number of statements from world leaders encouraging citizens to become more involved in the cultivation and sale of this cannabis, it is becoming clear that the benefits of legalization are widely accepted throughout our country. The question remains whether the federal government will begin to implement some type of tax revenue for municipalities that choose to implement legalized marijuana. Until we see official announcements from the federal government on this issue, investors should continue to take advantage of investing in stocks that are related to the cannabis industry.

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