Arguments against drug legalization are noted and countered Legal marijuana presents the potential for enormous benefits to economies at the local and national levels. It could also help secure investors' investment portfolios across the country and elsewhere as well. While marijuana remains illegal at the federal level, it is difficult for investors to capitalize on the growth of the industry. The number of marijuana-related companies listed on public stock exchanges is minuscule, and while investors have the option of working with over-the-counter exchanges, many of the most successful businesses in the initial cannabis legal space are based in Canada or other countries.
There are likely to be economic benefits and costs from legalizing marijuana. The obvious positive economic impact will be job creation and additional business investment in the local economy. Specifically, we should expect additional investment in the agricultural sector and an increase in the number of commercial establishments. It is also possible that the regional economy will indirectly improve in the long term with the legalization of marijuana, if the state government makes strategic investments using the additional revenues from marijuana taxes.
All of these reasons combine to lower the likelihood that marijuana will become legal nationwide at any time. Aside from this, the amount of money that federal legalization is capable of producing is enough to stimulate the economy, a plausible reason why cannabis should be legalized at the federal level. So what will be the economic impact of legal cannabis and what can we learn from other states that have legalized its recreational use? Taking a sheet from the Colorado or Washington book, four states in New Jersey, South Dakota, Montana and Arizona approved measures to legalize the use of marijuana for recreational purposes. The economic benefits of legalizing marijuana were already evident when the first states changed their legal positions.
It is still too early to assess the economic effect that legalized marijuana will have on the coffers of the two states that have voted to allow it, but the future looks promising. Legal changes have generated a flourishing industry of legal cannabis companies, including those that aim to research and develop medical products based on cannabis, those working to distribute and grow marijuana, and many others. Overall, legal marijuana could mean a big boost to state economies and a lot of money for both state and federal governments. The ICF study estimates that there are at least 81,000 additional direct, indirect and induced jobs in California as a result of the legalization of marijuana sales.
As marijuana becomes legal in more and more parts of the country, the price is likely to fall overall as a result of commodification. In total, more and more states are taking steps to legalize marijuana (whether for medical or recreational use, or both). The amount of income will be affected by numerous factors, including the types of regulations imposed on this new industry, the amount of taxes imposed on producers and consumers, and the speed with which producers and consumers take a long time to move from participating in the illegal to the legal marijuana market. As of today, there is no official plan for how the state government will use the additional tax revenues derived from the legalization of marijuana.