U.S. Economy To Receive $112.4 Billion Boost from Cannabis Industry in 2024

U.S. Economy To Receive $112.4 Billion Boost from Cannabis Industry in 2024

Green isn’t just the color of cannabis, it’s also the color of cash. And thanks to your heroic efforts in consumption, the industry is trying to help the economy.Notice from new publication MJBiz Fact Book It has been revealed that the economic impact of regulated marijuana sales in the United States could exceed a whopping $112.4 billion by 2024. This is a 12% increase compared to last year.

as a whole, Congressional Budget Office predicts that economic growth will slow in 2024 due to rising unemployment and falling inflation. As a result, the Fed is likely to lower interest rates starting in mid-2024. After this, economic growth is expected to pick up in 2025 (mark that year on your calendar in hopes of having more money to spend on cannabis) and then level off for the next few years. So 2024 likely won’t be one of the best economic years on record, but that’s not the cannabis industry’s fault. Without it, we would be $112.4 billion poorer as a nation. And as new cannabis markets emerge, the industry is projected to add more than $200 billion in additional spending to the U.S. economy by 2030.

While there was a decline in sales in established Western markets (California’s licensed retailers reported more than $5.1 billion in taxable sales in 2023), the latest year-end data shows a 4.7% year-over-year decline in sales. It became. California Department of Tax and Fee Administration(You may have read about California’s mass extinction), the cannabis industry continues to grow through the expansion of new recreational and medical marijuana facilities in states such as Maryland, Missouri, and New York.

While it would be interesting to see the cannabis industry add hundreds of billions of dollars to the economy, MJBiz’s dates do not take into account potential U.S. government actions such as federal rescheduling or legalization. Please note in particular. Economic impact. Biden has said he would reschedule marijuana and vacate more marijuana convictions, but he has not become the great liberal hero who legalized marijuana for everyone. Donald Trump is all over the place when it comes to marijuana. 30 years ago he said drugs should be legal But in modern times, it has retreated to appeal to conservative voters. Twenty-five years later, he told the Conservative Political Action Conference that he thinks legalizing marijuana is a “bad thing” and that he “feels very strongly about it.”

If you calculate the economic impact of $112.4 billion, MJ Biz Daily We applied some grand math by looking at comparable industries. We then used standard multipliers to estimate projected recreational and medical cannabis sales. Economic multipliers indicate the broad economic impact of the cannabis industry. This suggests that for every dollar spent by consumers and patients at adult-use stores and medical marijuana dispensaries, an additional $2.50 is recycled into the economy. This money primarily benefits the local economies that sell cannabis in the first place.

Note that the economic impact of the marijuana industry is different from supply chain revenue, which is commonly used to measure the “total size” of the industry. According to the MJBiz Factbook, total U.S. sales of adult-use and medical cannabis are expected to reach $32.1 billion in 2024 and increase to $58 billion by 2030.

The term “economic impact” refers to the impact of an industry (or event) on the economy of the corresponding region or country. This includes changes in economic growth, employment, wages, and overall economic activity. Economic impacts include direct impacts such as direct benefits from business spending and payroll. indirect effects such as additional economic activity from local suppliers meeting new demand; and the induced effects of employees spending their salaries locally. Knowing the economic impact helps stakeholders understand the economic value of different industries and make decisions accordingly.

This forecast represents the best available estimate of the evolving marijuana industry. The marijuana industry differs from other industries in that it remains illegal under federal law, even though it operates under a complex and ever-changing set of state regulations (although, of course, we will never make substantial progress). The cannabis industry is vast and includes not only the agricultural, manufacturing, and retail sectors, but also businesses that support the cause without selling cannabis, such as lighting suppliers and cannabis-friendly accounting firms. This number also includes 420 friendly event and hospitality businesses that, according to our data, actually improve our economy and give us a sense of satisfaction in being a part of our local cannabis community.

Chris M.
author

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