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Legalization Makes Cannabis a Big Cash Crop

Here’s more news of how legal cannabis is becoming big business: According to a report…

  • May 3, 2018

Cannabusiness - Well Armed Consumer
Here’s more news of how legal cannabis is becoming big business: According to a report by Ameri Research Inc., the global legal cannabis market was valued at $14.3 billion in 2016 and is estimated to grow at a CAGR of 21.1% between 2017 to 2024, while reaching a value of $63.5 billion by 2024.

This market is going through a period of robust growth due to increasing legalization and decriminalization of cannabis products across North America.

The state of California has legalized products for recreational use on January 1st. The state is expected to play an important role in the growth of the industry.

As a result, new businesses are expected to contribute to California’s tax revenue.

The LA times reported that, California is on the verge of creating a legal market for cannabis worth more than $5 billion that will help make the state a destination for pot-loving tourists.

Therein lies a lesson in moral hazard, perhaps. When states start raking in tax revenue and seeing a boom in cannabis-related job growth, it may make them less careful about letting the industry expand.

Cannabis advocates say the drug is less harmful than other, legal drugs such as alcohol and tobacco. That may well be – but only a zealot would claim that cannabis is harmless.

Let’s hope the lure of easy money doesn’t cloud the minds of government officials across the country, and prevent them from enacting smart regulations to protect the public.

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