The State of California is getting ready implement recreational cannabis thanks to the passing of Proposition 64 in 2016. The government has been working to make sure the regulations are in place and they are issuing licenses for sellers. This has the potential to be a massive boon for the state from an economic point of view. Already, California has the sixth largest economy in the world, and there are potentially billions of dollars available in the cannabis industry each year going forward.
Good for the Economy
Already, medical marijuana has proven to be a large and continually growing business in the state. By legalizing the recreational use of cannabis, it could start to bring in between five and six and a half billion dollars annually. When you start to factor in all the other fields that will be involved on the periphery, such as insurance, security, equipment, and more, the potential for businesses goes up even further. Even the price of new farmland that has never been used for growing has increased. Where it might have cost $50,000 per acre before, the prices have risen in some areas to $200,000 per acre. With the profit that can be made from marijuana, these prices are still well worth it for many growers.
With the excitement surrounding this business opportunity, there are many willing to invest. Plenty of new startups are being developed, and it will be interesting to see just what type of businesses do crop up from these opportunities.
Dismantling the Black Market
California has been one of the states with a prominent black market when it comes to cannabis. There have been illegal growers and sellers for decades, and those operations are often affiliated with other types of crime. They sell not only to those who are in the state, but they export to other western states, as well. With the advent of legalized marijuana, which can be taxed, it is likely that the California Highway Patrol and other law enforcement agencies are going to be working even harder to stop the black market. Part of this is because those illegal products cannot be taxed.
When cannabis is fully legal in California, it will mean the death of the black market, which could help to reduce crime rates substantially throughout the state. There may still be some illegal operations, but law enforcement will be working to root them out, as mentioned.
While there should not be any major issues with the legalization of cannabis in California on January 1, there is always the risk of the federal government trying to overstep their bounds. This is particularly true with the current regime and the appointment of Jeff Sessions. Fortunately, even in the upper echelons of politics, thoughts on cannabis are changing. With luck, other states will start to legalize cannabis, as well. Many states have already legalized the medical use of cannabis, and now it is only a matter of time for full legalization in those states.
Resource: Provided by client