The growing popularity of medical cannabis and the legalization of recreational marijuana promises numerous economic and social benefits. It has created a lot of new business opportunities, improved the quality of healthcare, and created new revenue sources for states. The economy has suffered greatly in recent years, but marijuana can help it move forward. Here are some ways that marijuana can help the modern day economy.
New Small Businesses
Big business doesn’t have any monopolies in the world of marijuana just yet. While some of the major growers have more of a household name than others, the economics of the industry leave room for many individual businesses to prosper. The expenses of production and distribution aren’t particularly cost prohibitive for smaller companies in the way that they are in other industries, so this sector invites healthy competition. Moreover, relatively small dispensaries have enjoyed enormous success since many states have permitted recreational sales. These small businesses are thriving. Their principals see considerable returns on their investment, and they’re able to create a lot of job opportunities within their local communities.
In 2020 and 2021, cannabis companies had some of the most noteworthy rallies on Wall Street. Many penny stocks under $5 have seen hundreds of percent in gains. Increased sales and positive earnings reports were a driving force behind the rallies. Both individual investors as well as large institutional investors can continue looking forward to future gains. The booming economics of the cannabis industry have helped to establish a strong new sector on several exchanges.
Reduced Healthcare Costs
The nation’s healthcare system is far behind those of other developed countries. The expense that people incur for basic healthcare and medical treatment is staggering. Cannabis can help people to manage a variety of health conditions and perhaps mitigate the costs of care. For example, cannabis may enable people who experience chronic pain associated with an underlying health condition to require less prescription drugs or fewer visits to specialists.
States can generate a fantastic stream of new tax revenue with marijuana legalization. A fixed tax on marijuana sales and the business tax on corporations in the industry can provide vital funding for much-needed public services. This can help repair some of the imbalances caused by recent tax breaks for mega-corporations.
Ultimately, new businesses operating in the marijuana industry have succeeded individually while also creating positive ripple effects in the economy. Widespread marijuana legalization will create substantial economic benefits for years to come.