Will Legalizing Marijuana Help the Failing US Economy?
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7th October 2020

Will Legalizing Marijuana Help the Failing US Economy?

Isai Allison
The world’s falling economies has brought tough measures that could be regarded as illegal in the old normal. However, the new normal looks at marijuana as a means of offsetting the ailing economy. In a published letter, 34 US state attorneys are pushing for the legalization of cannabis whose business are hindered by law and which could see crime rates go up.

Marijuana, popularly known for its medicinal

Marijuana, popularly known for its medicinal aspects; is set to be legalized it would mean heavy cash transfers which will eventually lead to audit problems owed to theft. One of the attorneys twitter’s post stated, “Congress needs to pass #SAFEBankingAct. It is irresponsible to force cannabis businesses to operate in cash.”. The attorneys who signed the letter are demanding for quick action in signing of the Secure and Fair Enforcement (SAFE) Banking Act to enable state-licensed marijuana businesses to maximize their engagements with financial institutions.

Will Legalizing Marijuana Help the Failing US Economy?

In a recent published article, the lawmakers are calling for quick measures with the agenda of leveraging tax revenue in the cannabis industry. Banks and financial institutions will be able to pull revenues generated from the sales of the product further supporting the enactment of the SAFE Banking Act. Cannabis industry which is estimated to generate an estimated revenue of USD 1 billion a year, deals with direct cash transfers often referred to as direct to consumer (D2C) has raised health questions as to whether the Act will put tax collectors and bank people at risk.

Focusing on tax revenues, research report on the forecast of the Cannabis Seeds market between 2020 and 2027 in terms of value is anticipated to register a steady CAGR. Data Bridge Market Research analyses that the market is growing with the CAGR of 16.2% in the forecast period of 2020 to 2027 and is expected to reach USD 1, 534, 43 million by 2027. Increasing medicinal usage and increased number of users are the major factor for the growth of the market.

The legalization process of the drug has stalled because the lawmakers cannot go on a door-to-door operation looking for signatures to enable them pass the Bill into the ballot. Local governments are also pushing for lifting of stay-at-home orders arguing that the budget set for the existing economy will soon be crumbling down. A research by Federal Emergency Management Agency (FEMA) shows that the aftermath of natural disasters such as floods, tsunamis or hurricanes, do not normally help affected businesses stand for long. It argues that some fail after a year of operation due to unrealized marginalized profits lost in the event of the disaster.

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