Colorado's Legal Marijuana Industry Is Creating Economic Growth
By New Frontier Analysts
A recent report in The Cannabist, stated the extraordinary amount of benefits produced under the legalization of cannabis in Colorado, which has created an economic boom in the Centennial State. Since the legalization of cannabis in Colorado, the legal cannabis industry has shown an unexpected production of sustained increases in retail sales and employment, thus stimulating the state’s economy. Revenue for legal cannabis sales totaled about $486 million in just the first five months of 2016 for the newly legitimized market. In the decade prior to the legalization of cannabis, Colorado experienced stagnation in their employment market, yet after the legalization efforts employment rates subsequently increased. With that said, some industries, such as the oil and gas sectors are substantially hemorrhaging jobs and that trend is expected to continue.
This trend is tremendously significant for national pro-legalization activists, who argue not only about the positive and often misconstrued negative health and social effects, but also for the positive economic impacts of legalizing, taxing, and regulating the booming legal cannabis industry. The flowering industry has made staggering strides in producing an increase in employment rates, an important leap for not only the industry but also for the state its self. Although some industries are scaling back employment, the marijuana industry is expected and has demonstrated that the market will make up for employment losses sustained by the oil and gas industries. The recent influx of tax revenues from the recently legitimized market has allowed for the states to allocate funds for much needed social and infrastructure programs.
Looking towards the near future, as more states continue the fight for legalization, the effects that Colorado demonstrated will be used as evidence for the economic benefits of regulating cannabis. In general, it seems as though the first domino has fallen and more states will continue to legalize the consumption and sale of marijuana, as the domino theory goes.
As for Colorado, a pioneer for the adult use market, job growth is expected to significantly increase as the cannabis industry takes root and begins to show evidence of thriving. As more states begin to consider the economic impacts proven in Colorado, it looks as though more states will pour funds into researching the social and economic implications of legalization and eventually will find that taxing and regulating will allow for more job growth and general boosts for the economy.
New Frontier Analysts
Our data scientists drill deep with rigorous analytics to provide insight into key trends and market opportunities. We track the state of cannabis and its regulation in all major legal markets.