Americas Fastest Growing Industry: Marijuana
Start writing a post
Politics and Activism

Americas Fastest Growing Industry: Marijuana

The economic impact of the growth of legal marijuana markets

22
Americas Fastest Growing Industry: Marijuana
https://wheresweed.com/

The recreational use of cannabis has a history that is as filled with as much misinformation as there is about the drug itself. Growth of hemp was encouraged upon the founding of our nation due to it having a high level of profitability to weight and the ease of growing it. It wasn’t called marijuana until around 1910, when Mexicans were fleeing to the US during the Mexican revolution, and many of them smoked it recreationally. In 1932 the marijuana was made illegal through the Uniform States Narcotic Act, after a study found linkage between marijuana usage and criminal behavior of “racially inferior” communities. In 1972 the Shafer Commission recommended the complete decriminalization of marijuana. Instead, since it was an election year, there was increase in the size of drug enforcement agencies, and the rise in mandatory minimum sentences and the beginning of the war on drugs, this increased the prison population, but has never decreased the usage rates in the United States. Once the waves of politicians wanting to look tough on crime calmed down, a few states decriminalized possession, and in 1996 California legalized medical marijuana, which began the march to where we are now. On November 8, 2016, four states voted to legalize recreational marijuana. Growing the total to eight states, most of the new states are hoping to get the process finalized by the beginning of 2017, but the process could wind up like Alaska that had to wait until last month to start sales after it being legal for two years.


State

Population (Million)

Yearly Marijuana Sales (Millions of USD)

State GDP (Billion USD)

Marijuana Sales Effect On GDP

Colorado

5.46

996

295.3

.3%

Oregon

4.03

218

158.2

.13%

Washington

7.17

257

311.3

.08%

Nevada

2.89

121.6

127.2

.1%

Maine

1.33

146.2*

48.11

.3%

California

39.14

2,824*

2,448

.12%

Alaska

.71

102**

44.52

.23%

Massachusetts

6.79

532.9*

351.5

.15%

*projected based of line of best fit for existing data (y=70.836x+51.939) this was with an R^2 values of 0.1059. It was low do small sample size and the outlier of Colorado. ** Projections for Alaska likely thrown off by the high value of b in the equation y=mx+b. All data is based off 2015 data if available to keep data relatively standardized.

Based on the available data, marijuana legalization accounts for between a .1 to .3 percentage point growths in the GDP at a minimum. This is based solely off sales data not accounting for the growth of the GDP caused by the growth of dispensaries, agribusinesses in the supply chain and the people that work at those businesses. Marijuana sales should hit over 5.2 billion dollars in 2017. It also reduces losses of state funds caused by enforcing marijuana laws. Between 2001 and 2010 there were 8.2 million marijuana arrests. 88 percent of these arrests were exclusively for minor possession. Another consequence is that due to higher patrolling and stops in high crime areas it has a higher effect on African-Americans who are more likely to live in these areas. This is why African-Americans are incarcerated for marijuana at 3.7 times the rate of whites even though they both have the same usage rates. . Study finds that 7.3 percent of all Americans used marijuana last year. This number is up from last year and the year before. States lose $3.5 billion annually by enforcing marijuana laws. This also causes reduced earning potential by preventing these individual from being able to compete in the job market. Less competitive job markets mean less productive societies, and being locked out of the legal job market may push individuals to illicit labor markets. This legalization could also cause similar effects as the 21st amendment which greatly reduced organized crime in the US. Vice News

Brings money out of the informal economy, that is cash transactions between individuals, and into the regular economy. It also takes money away from local criminal organizations and reduces the violence caused by the inability to enforce contract disputes on territory, quality, quantity and price. This money that eventually through leaves the US economy entirely by going to foreign criminal organizations. The legalization greatly depresses the income of these groups, and by decreasing the profits of these illicit enterprises it decreases the draw to individuals considering joining. Mexican cartels make $64.3 billion off of illicit drug sale in the United States. This accounts for 22 percent of Mexican trade with the US or 5 percent of Mexico’s total GDP. So US consumption and drug laws have huge effects on Mexico and the growth of violent criminal corporations. After continued growth of the US legal market for cannabis in 2014 drug seizures in Mexico dropped by 32 percent in volume. In 2015 seizures of weed at the border dropped to the lowest in a decade and the street price of the drugs smuggled declined by 50 percent. these market forces put even greater presser on illicit markets. The smaller these groups are the less capable they are of helping with illegal immigration, and other crimes. Cartels are unable to compete with US legal cannabis markets because of the relative high cost smuggling due to losses of product, highly specialized transport, and high travel distance. It also struggles to compete with U.S. production processes, which grow under highly controlled conditions which results in a higher quality product with a higher THC content which is the chemical responsible for the desired effect of smoking marijuana. If these policies can out-perform current policies while growing local economies we can shrink the 51 billion dollars each year we spend on the war on drugs with minimal results.


I hope you enjoyed this article, and maybe even learned something. Feel free to share with your friends on the social media. If you want to read more of my other content you can here or follow me on twitter. Please stop by next week for more articles on news, economics and international affairs only available at Odyssey.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Student Life

Waitlisted for a College Class? Here's What to Do!

Dealing with the inevitable realities of college life.

54773
college students waiting in a long line in the hallway
StableDiffusion

Course registration at college can be a big hassle and is almost never talked about. Classes you want to take fill up before you get a chance to register. You might change your mind about a class you want to take and must struggle to find another class to fit in the same time period. You also have to make sure no classes clash by time. Like I said, it's a big hassle.

This semester, I was waitlisted for two classes. Most people in this situation, especially first years, freak out because they don't know what to do. Here is what you should do when this happens.

Keep Reading...Show less
a man and a woman sitting on the beach in front of the sunset

Whether you met your new love interest online, through mutual friends, or another way entirely, you'll definitely want to know what you're getting into. I mean, really, what's the point in entering a relationship with someone if you don't know whether or not you're compatible on a very basic level?

Consider these 21 questions to ask in the talking stage when getting to know that new guy or girl you just started talking to:

Keep Reading...Show less
Lifestyle

Challah vs. Easter Bread: A Delicious Dilemma

Is there really such a difference in Challah bread or Easter Bread?

35244
loaves of challah and easter bread stacked up aside each other, an abundance of food in baskets
StableDiffusion

Ever since I could remember, it was a treat to receive Easter Bread made by my grandmother. We would only have it once a year and the wait was excruciating. Now that my grandmother has gotten older, she has stopped baking a lot of her recipes that require a lot of hand usage--her traditional Italian baking means no machines. So for the past few years, I have missed enjoying my Easter Bread.

Keep Reading...Show less
Adulting

Unlocking Lake People's Secrets: 15 Must-Knows!

There's no other place you'd rather be in the summer.

957449
Group of joyful friends sitting in a boat
Haley Harvey

The people that spend their summers at the lake are a unique group of people.

Whether you grew up going to the lake, have only recently started going, or have only been once or twice, you know it takes a certain kind of person to be a lake person. To the long-time lake people, the lake holds a special place in your heart, no matter how dirty the water may look.

Keep Reading...Show less
Student Life

Top 10 Reasons My School Rocks!

Why I Chose a Small School Over a Big University.

183943
man in black long sleeve shirt and black pants walking on white concrete pathway

I was asked so many times why I wanted to go to a small school when a big university is so much better. Don't get me wrong, I'm sure a big university is great but I absolutely love going to a small school. I know that I miss out on big sporting events and having people actually know where it is. I can't even count how many times I've been asked where it is and I know they won't know so I just say "somewhere in the middle of Wisconsin." But, I get to know most people at my school and I know my professors very well. Not to mention, being able to walk to the other side of campus in 5 minutes at a casual walking pace. I am so happy I made the decision to go to school where I did. I love my school and these are just a few reasons why.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments