There are 10 states that have legalized marijuana so far in 2018. Recently Michigan just became the first state in the Midwest to legalize recreational marijuana.Many research indicates that there is a tremendous impact on US’s economy. According to a research from a cannabis analytics company New Frontier, the economic impact of legalizing marijuana could bring an additional $105.6 billion on the federal level between 2017 and 2025.
I am going to talk about the economic aspect of benefits and how cannabis legalization will have a positive influence on society.
As more states legalized recreational marijuana, many people started to establish their business in Cannabis industry. The global spending on legal marijuana is expected to grow to $32 billion in next 4 years compared to $9.5 billion in 2017, according to Archive Market Research and BDS Analytics. Legalizing marijuana in a nationwide level can generate at least $132 billion revenue in tax and millions of job opportunities across the entire country in the next 10 years.
A data from New Frontier shows that the cannabis industry could bring an unprecedented revenue in sales tax and payroll deductions.
There are 25 states that have legalized medical marijuana and 7 states that have legalized recreational marijuana currently. The legal cannabis market had an estimated worth of $7.2 billion in 2016 and it is projected to grow at an annual rate of 17%. Medical marijuana sales are expected to grow from $4.7 to $13.3 billion USD between year 2016 and 2020. Adult recreational sales are estimated to boost from $2.6 to $11.2 billion USD.
All these numbers confirm that cannabis is a major impact to US economy; growth of tax revenue and increased job opportunities.
Before several states legalized marijuana, the black market was the only place to find marijuana. The legalization of marijuana has either wiped out most of the illegal market or encouraged them to register with the state to open licensed dispensary. These dispensaries are regulated and taxed which bring positive effect on US economy.
Many cannabis users purchase Marijuana for medical use. Research shows that cannabis can alleviate pain, help with anxiety, and relieve depression and post-traumatic stress disorder symptoms. Many people have misunderstood that smoking marijuana expedites losing lung function over time. However, a study from Journal of American Medical Association found that smoking marijuana may increase lung capacity. Compared to tobacco, The National Academies Report showed that marijuana users are more unlikely to get lung cancer.
Focus on More Serious Crime
There are two relatively important things that legalization of marijuana would do. First, it provides the police department and courts more funds through tax revenue. Oftentimes the police and the court are overwhelmed with handling possession of marijuana. Under the law, those cases were treated similarly as they were possessing different schedule of drugs. Legalising marijuana would help the overcrowded prison and court system relieve the pressure.