Cannabis Legalization Could Help Revive the Economy After the Pandemic

Leaders of the largest cannabis production companies believe that legalizing marijuana would create a huge number of jobs and help save the country’s economy.

The COVID-19 pandemic has severely impacted the economy in the United States, as it has in other countries around the world. Many people lost their jobs due to widespread isolation and quarantine measures. Three American CEOs of cannabis companies and one investor believe that legalization would create new jobs and help restore the economy.

Companies like Curaleaf, Green Thumb Industries, and Cresco Labs are urging the U.S. government to finally legalize cannabis at the federal level, as this industry offers unique economic opportunities.

Last month, government restrictions and social distancing rules hit the U.S. economy hard. Business depends on how much people spend, but when everyone is forced to stay home, the economy comes to a standstill. After a while, 22 million Americans filed for unemployment benefits.

Experts estimate that the national unemployment rate is around 13.5%. For comparison, during the Great Depression—the most severe American economic crisis in recent history—the unemployment rate reached only 10%.

Legalizing cannabis at the federal level could help solve some of the financial problems caused by COVID-19.

The U.S. cannabis market is worth over $53 billion. This figure includes not only legal marijuana, but also cannabis sold on the black market. Only $7 billion of this amount comes from legal cannabis sales, meaning the government is losing a significant amount of money every day it delays legalization.

Last year, states that legalized marijuana created 76% more jobs than in 2018. If this trend were applied to every state in the U.S., the numbers would be impressive. Legalization would also help businesses that have been hit hard by the quarantine.

“One of the federal government’s programs right after the Great Depression was to focus on generating tax revenue,” said Boris Jordan, Executive Chairman of Curaleaf. “They lifted the ban on alcohol and started taxing it—which became a major source of income for both federal and local governments across the country.”

Recently, Lebanon followed this idea and legalized medical marijuana to address its economic crisis, becoming the first Arab country to legalize cannabis for medical and agricultural purposes.