Due to the impact of COVID-19, almost all industries in the United States have been severely affected. However, the cannabis industry has not only responded to this challenge relatively well but is also preparing for an earth-shaking change that unleashes its enormous potential. For comparison, COVID-19 has accelerated the legalization of marijuana.
Marijuana is still illegal in the United States, and the federal government defines it as a Schedule 1 drug along with heroin and LSD. However, 34 of the 54 US states have legalized the use of medical/recreational cannabis to varying degrees, and other areas have also made significant progress.
For those states that have legalized cannabis, especially for adult recreational marijuana, the cannabis market has already brought billions of dollars in taxes, and there will be more taxes. For example, in California, since the legalization of adult recreational marijuana in January 2018, the state ’s total taxes have exceeded $ 1 billion. Colorado also surpassed this milestone in 2019. All this shows the economic power of the cannabis market to create taxes. Local governments and even the federal government have begun to study the cannabis market to cope with the expanding fiscal deficit and the unemployment problem of more than 300,000 people.
This good trend has enabled the economic power and social potential of the cannabis market to be supported by more groups. Online orders for cannabis are increasing, which makes cannabis sales an essential business. Some members of parliament have also made great efforts to ensure that companies in the cannabis industry can obtain help from federal loans.
In March this year, the Coronavirus Aid, Relief and Economic Security (CARES) Act was passed to prohibit illegal companies at the federal level (including cannabis companies) from applying for $ 350 million in loans. However, two weeks later, more than 30% of the members of the House of Representatives jointly wrote to the congressional leaders, urging them to agree that the cannabis company can participate in a new round of federal loans. The letter emphasized the importance of the cannabis industry to the US economy. For example, the cannabis industry created 240,000 jobs in 2019 and generated nearly $ 2 billion in taxes.
A survey by the Pew Research Center shows that more than 90% of respondents believe that medical marijuana and recreational marijuana should be legalized. The use of cannabis has increased dramatically in recent years, which should be better understood, accepted, and adopted.
This article is issued by BENZINGA, Nick Kovacevich. For further information, please check out BENZINGA.