The Billions Behind Marijuana Legalization [Video]

The debate over legalizing marijuana has been ongoing, but have you considered the economic impacts? In this video, we’ll dive into the economics of marijuana and discuss if it’s good for the economy or not. Since the early steps towards legalization, with California legalizing medical marijuana in 1996 and Colorado and Washington legalizing recreational use in 2012, there’s been substantial evidence of its economic benefits. States with legalized marijuana have seen impressive tax revenue growth, with Washington and Colorado collecting millions in 2021 alone. Nationwide, tax revenues from marijuana significantly increased from $1.7 billion in 2019 to $3.7 billion in 2021, with predictions of substantial federal revenue if legalization were nationwide.

Beyond tax revenue, the legalization of marijuana has spurred job creation, with estimates suggesting over 1 million jobs could be created by 2025. This growth isn’t limited to direct marijuana sales but extends to related sectors like construction, processing, and distribution. However, the investment landscape shows a mixed picture. Despite the industry’s growth to a worth of $25 billion annually, marijuana stocks and ETFs have seen significant losses, attributed to low weed prices, high operational costs, and legal risks.

The discussion on legalization also touches on the potential for social and community benefits, with tax revenues supporting affordable housing, education, and healthcare. Yet, the debate remains complex, considering the ethical implications of legalizing a potentially addictive substance and its societal impact. The economic benefits are clear, but they come alongside broader questions about the kind of society we aim to build and the human cost of marijuana legalization.

0:00 Intro
0:45 History
2:30 Taxes
4:40 What Are The Taxes Used For?
5:30 Knock On Effects
6:30 Stocks