Cannabis Legalization

In a development that shouldn’t be shocking to anyone paying attention to the benefits of cannabis legalization, the Canadian economy received a CAN$43 billion boost in 2018 from legal marijuana.

While a fairly small portion of it – around 10% – came from the direct sale of legal cannabis, the economy around it benefited far more. Sectors such as transportation, manufacturing, legal/financial services, construction, etc. all get a boost of activity from the legal marijuana economy.

According to accounting firm Deloitte, the past three years of legalization have also contributed approximately CAN$15 billion to the Canadian economy through taxes. This is tax money that would likely have gone mostly into the pocket of black market dealers without legalization. In addition to the added tax revenue, the firm estimates approximately 150,000 jobs are now dependent on the cannabis industry, the vast majority of which did not exist prior to legalization.

It’s tempting to think about what kind of effects cannabis legalization is going to have in the future. As the number of licensed dispensaries increases, the positive economic contribution to the overall Canadian economy is likely going to increase as well. As analysts have seen in the U.S., state-by-state legalization has provided new revenue streams which show no sign of slowing down. After 3+ years of legalization, and barring an overall economic turndown, the amount of money flowing into the Canadian economy from legal marijuana is likely to increase

Comments are closed.