Green is the New Gold: How the Cannabis Industry is Boosting the Economy
Move over, Wall Street. The real money maker these days is the cannabis industry. And thanks to the growing demand for cannabis products, the economy is reaping the benefits. According to the newly released MJBiz Factbook, the economic impact of regulated marijuana sales in the U.S. is projected to reach a staggering $112.4 billion by 2024, with a 12% growth compared to last year.
But don’t get too excited just yet. The Congressional Budget Office predicts a slowdown in economic growth for 2024 due to higher unemployment levels and reduced inflation. However, the Federal Reserve plans to lower interest rates in mid-2024, which could help boost the economy. And for all you cannabis enthusiasts out there, mark your calendars for 2025 – it’s expected to be a rebound year for the economy (and hopefully, your wallet).
While some may blame the cannabis industry for any economic struggles, the truth is that without it, we would be $112.4 billion poorer as a nation. And as more states legalize cannabis, the industry is projected to contribute over $200 billion in additional spending to the U.S. economy by 2030.
Despite some sales dips in established western markets, the cannabis industry continues to see growth through the expansion of new recreational and medical marijuana facilities in states like Maryland, Missouri, and New York. And while the MJBiz Factbook’s projections are impressive, they don’t even account for potential government actions like federal rescheduling or legalization, which could further boost revenue and economic impact.
Speaking of government actions, let’s take a look at where our current leaders stand on cannabis. While President Biden has expressed support for rescheduling cannabis and expunging past convictions, he has yet to fully follow through on his promises. And as for former President Trump, his stance on cannabis has been all over the place – from advocating for legalization 30 years ago to recently calling it “bad” at the Conservative Political Action Conference.
So how did MJBizDaily come up with that impressive $112.4 billion figure? By using some epic math, of course. They looked at comparable industries and applied a standard multiplier to estimate projected sales for recreational and medical marijuana. This multiplier takes into account the broader economic impact of the cannabis industry, suggesting that for every dollar spent by consumers and patients, an additional $2.50 is circulated into the economy.
