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Would Legalizing Drugs Help the Economy

A study by the RCG Economics and Marijuana Policy Group on Nevada indicates that legalizing recreational marijuana in the state could support more than 41,000 jobs and generate more than $1.7 billion in labor income by 2024. The ICF study estimates that at least 81,000 additional direct, indirect and induced jobs are being created in California as a result of the legalization of marijuana sales. It also forecasts an increase in total labour income of at least $3.5 billion. Industry experts are evaluating the economic benefits of marijuana based on the potential already assessed, which, if used properly, would explode the sector. The economic benefits of legalizing weed were already evident when the early states changed their legal position. Overall, legal marijuana could be a big boost for state economies and a lot of money for the state and federal government. Although state and federal law remain divided on this issue. Let`s look at some of the main economic benefits of legal marijuana. While the alcohol ban was enacted in the “Roaring 20s,” a time of economic prosperity and generosity, the mood of the country at the time of the Great Depression had shifted dramatically in favor of repealing the ban, fueled by arguments from anti-prohibitionists that legalizing alcohol would provide much-needed tax revenue and jobs for a struggling economy. It is estimated that the federal government alone lost $11 billion in alcohol-related taxes during the years of prohibition, a figure the government could ill afford at a time of soaring unemployment and economic hardship. According to a marijuana analysis company, New Frontier, full legalization would result in an additional 654,000 jobs in all 50 states. By 2025, this number would reach the 1 million mark. Legal states should establish medical cannabis nurseries and pharmacies that create jobs and increase revenue potential.

The financial strengthening then stimulates the economic activity of the local pot industry. Aggregated at the national level, this would represent significant savings in the form of a reduction in the number of trials and detentions. Authorities could use some of this money for initiatives in favor of groups affected by the war on drugs and cannabis education. The legalization of marijuana also benefits medical users of cannabis products. As marijuana becomes legal in more and more parts of the country, it is likely that the price will drop overall due to commodification. This may not seem like immediate good news for overall tax revenues or for marijuana companies looking to maximize their profits. However, people who use marijuana products for medical treatment would benefit greatly from lower prices for these items. Read on to find out how the U.S.

economy will benefit as the cannabis industry becomes completely mainstream. The more states legalize cannabis, the lower the cost of enforcement; If marijuana were legalized nationally, these costs would likely decrease significantly. If marijuana were removed from the list of controlled substances, far fewer lawsuits would be filed with the substance in court, resulting in fewer incarcerations and, therefore, more money. Here`s how enthusiasts predict marijuana will help the economy if it`s legalized nationwide for recreation, medical care, or both. The New Frontier report, which predicts the impact of legal marijuana at the federal level, suggests that nationwide legalization could create 1 million jobs by 2025. These jobs would likely come from the rapidly growing industry that would emerge across the country. Workers would be needed to grow, process, distribute and sell marijuana products. In addition, there would be many opportunities for secondary industries associated with legal cannabis, although they are not directly involved in its production and distribution.

This can include software developers, financing services, construction companies, and many others. Legal marijuana offers the potential for huge benefits to local and national economies. It could also help secure investors` investment portfolios across the country and abroad. Although marijuana remains illegal at the federal level, it is difficult for investors to profit from the growth of the industry. The number of marijuana-related businesses traded on public exchanges is minuscule, and while investors have the option to partner with OTC exchanges, many of the most successful companies in the legal cannabis space are based in Canada or other countries.