Many western countries and a few states in the US have successfully legalized marijuana for medical purposes. With the growth in the research, more and more benefits of medicinal marijuana came forward such as the treatment of mental and physical health, and so on.
The legalization of marijuana was the result of the impossibility to determine the difference between committing a crime and using the drug for medicinal purpose when consumed. This legalization may not just be beneficial for the ones who consume it but also for the ones who don’t. In other words, the benefits of medicinal marijuana go beyond the treatment of health issues. It benefits the economy as a whole. Thus, legalizing medicinal marijuana has perhaps influenced the economy as well.
1. Increase in government revenue
The legalization of medical marijuana will increase the cash flow in the economy and government revenue as well. Many states have benefitted from this decision as their revenue increased. Furthermore, other factors being the same, it is only the tax revenue that can bring about a positive impact on the economy with the legalization, influencing the economic trends in a positive way.
2. Job creation
Job creation is one of the major benefits to the economy if medical marijuana is legalized. A study shows that there will be a significant upsurge in job opportunities in the health sectors of the United States where the cannabis industry is seated. The legalized medical marijuana sales are expected to grow from $4.7bn in 2016 to $13.3bn in 2020 with the legal cannabis market being worth $7.3bn.
3. Effects on black marketing
Legalization of medical marijuana in some countries and decriminalization in others has lead to a significant decrease in the black marketing of the drug as people are now resorting to the legal means of purchasing or producing and consuming the drug. Due to this, the tax revenue of governments has shown a remarkable increase with the increased demand of medical marijuana, which has successfully eroded the black market.
Thus to sum up, marijuana is more than just its recreational and medicinal uses. Research has shown that the legalization of medical marijuana in a few countries has remarkably helped boost the economic conditions of these countries. It is the demand of marijuana and its successful legalization that has been positively influencing and amending the economic trends in these countries.