As the period of shelter-at-place drags, the entire nation is also dealing with the threat of the economic crisis. It has come along as the main residue of the Covid-19 pandemic, and it’s us who need to find a way out
The businesses will struggle for long, and the government even more so. Amidst this chaos, the government will fall short of ways to revive the economy.
The marijuana industry has been contributing to the economy ever since it has been legalized in many states. It has always had the potential to become a major industry.
But today, we want to talk about the possibility of how the Federal legalization of marijuana could help us revive our economy post this crisis.
The Marijuana Industry Is An Impactful Source Of Revenue
Over the past few years, there has been a consistent rise in tax revenue on marijuana from the states who have legalized it medically and recreationally.
According to the report of Pueblo’s Institute of Cannabis Research- California State University, the legal marijuana businesses have contributed over $80.8 million in the form of taxes and fees in 2017.
As reported by Investopedia, In 2019, Colorado alone managed to collect more than $302 million in taxes on medical and recreational marijuana.
The gain in the form of federal taxes could be much more if marijuana is legalized across all 50 states. In fact, according to New Frontier Data’s theoretical model, the aggregated federal tax revenue potential is somewhere around $105.6 billion.
Today, when the economy is collapsing, and the government treasury is supposedly emptying, cannabis could be the economic stabilizer post-Covid-19 crisis.
The Average Size Order Increased Amidst Covid-19 Crisis
California is one of the few states that deemed marijuana as an essential item during the crisis of Covid-19.
So the people of California have been able to stock on marijuana products, medical or recreational, just like any other essential living item.
Spectrum News1, Southern California’s local news channel, covered a story on Perfect Union dispensary to map the demand for marijuana during the stay-at-home order.
The CEO of Perfect Union dispensary, David Spradlin, said, “In an almost 11-year history, we’ve had eight record-breaking days in the last month.”
Spradlin confirmed to Spectrum News1 that the average size order has increased from $60 to $81 over the last month since the crisis hit.
He also cleared it further that the surge has little to do with 4/20, as the trend started much earlier than that and has continued.
If the marijuana industry has such an impact on people that in such times of uncertainty, they are choosing to cash on it, in fact, more so than usual, we believe it definitely has the potential to revive the economy post-Covid-19.
Total Labor Income May Increase To $3.5 Billion- And That’s Just One State
The after-scenes of the Corona outbreak don’t look good on the economic front, and 26 million people could lose their jobs.
It would almost be impossible to put things back on track without living through the economic crisis for years.
Legalizing marijuana on a Federal level does seem to have the potential to minimize the gap, though, especially after seeing some of the numbers.
According to the New Frontier’s report, the nationwide legalization of marijuana could create 1 million jobs by 2050, which is exactly what we may need to recover from the Covid-19 crisis.
An ICF study that talks about the economic impacts of Marijuana Sales in California projected an increase in the total labor income by at least $3.5 billion.
With jobs to hand out and a steady source of income, marijuana legalization has the capacity to restart the US economy post the pandemic. And we sincerely think the national bodies should walk towards that thought for the sake of people and our country’s economy.