Despite being prohibited by federal law, cannabis has quickly become one of the most lucrative industries in the country. After only a few short years of legalization, the state-legal marijuana industry has generated billions of dollars in sales and filled state coffers with billions of dollars in cannabis sales taxes.
Furthermore, the industry has created more than 300,000 new job opportunities across the country. Cannabis was one of the few industries considered essential at the start of the coronavirus pandemic, and it managed to consistently break sales records while other sectors struggled to keep their doors open.
With lawmakers considering federal legalization, cannabis may prove to be even more lucrative in the future. According to an analysis from the MJBiz Factbook, marijuana sales are poised to add a whopping $99 billion to the U.S. economy this year. By 2026, the impact of cannabis sales on the American economy will be greater than $155 billion.
Published by the MJBizDaily, the data shows that cannabis could have a significant positive impact on the economy, especially if federal limitations are removed. Researchers from MJBizDaily studied industries that have similarities to the marijuana sector, deliberated with economists, and multiplied projected medical and recreational cannabis retail sales by a standard multiplier of 2.8 to measure marijuana’s projected impact on the economy.
However, their results cannot be taken as concrete proof of the industry’s impact because cannabis has a unique structure compared to other sectors. For starters, it is illegal under federal law and has to operate under a multitude of limitations, despite bringing in millions of dollars in taxes every year.
Additionally, cannabis production typically involves a variety of cross-sector activities such as agriculture, manufacturing, retail, and even hospitality and events. These are all sectors that tend to be high value and have a greater impact on the economy. Rather than just estimating the amount of tax dollars cannabis would pump into the economy, this analysis looked at how the industry would impact the broader economy.
The researchers found that for every $10 spent at medical and recreational cannabis retail locations, an extra $18 would be injected into the local economy. This additional $18 would come from the hundreds of thousands of people who work in the cannabis industry through payments of housing and transportation, and other needs and wants.
As agricultural, manufacturing and retail ventures in the cannabis industry move to new regions, established companies such as Cannabis Strategic ventures Inc. (OTC: NUGS) are likely to continue expanding as well as they leverage their expertise and contribute to the growing economy.
NOTE TO INVESTORS: The latest news and updates relating to Cannabis Strategic Ventures Inc. (OTC: NUGS) are available in the company’s newsroom at http://cnw.fm/NUGS
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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