2016 is setting up to be a year to remember for legal marijuana. John Kagia, director of industry analytics at an investment company called New Frontier, says the next five years “is going to be a very, very competitive market” and calls 2016 the “tipping point.”
The state of legal pot
23 states altogether now allow pot for either medical or recreational and this year alone one dozen states are deciding whether to legalize pot while seven of these are deciding on recreational use. What are these new states on the scene going to figure out and do?
For example, if many states allowed the use of marijuana how will the laws on transporting it from state to state change? Maybe no more getting pulled over on our nation’s highways just because a cop sees you have a Colorado license plate?
Billions in revenue
Again and again, it’s been reported we should all expect to see sales hitting nearly $22 billion by 2020. Illegal at federal level, but allowed for recreational use in Alaska, Colorado, Oregon and Washington, and in our capital Washington DC they celebrated their one year anniversary this March. I’ve seen scholarly people debate politics before, so I can only imagine what a stoned conversation about the “issues” is like in the capital. Heated I would think!
Here’s some fun and interesting facts about the marijuana industry; plants need a huge amount of water and electricity. Electricity counts for fifty percent of the wholesale price of weed. New Frontier said that’s equal to one percent of total electricity use in the US or 1.7 million homes and $6 billion a year. In a positive spin legal marijuana cuts down on the overcrowding of courtrooms, jails, and prisons. The weed boom also increases the demand
In a positive spin legal marijuana cuts down on the overcrowding of courtrooms, jails, and prisons. The weed boom also increases the demand on farming equipment. When it comes to growing your own plants four are allowed in Oregon, six in Colorado, six in DC but absolutely none in Washington state.
One reason America could be pot crazy is all the money being made. The Denver Post reported in 2015 Colorado earned $135 million from taxes and $1 billion in sales statewide. Washington in comparison made $70 million in taxes and $257 million statewide.
Colorado and Washington have averaged a 30 percent increase in revenue per year since 2012 and they are also known as “pioneers” of legalization. Colorado was the first place in the world to regulate marijuana from seed to sale and now Uruguay is the first country to do this.
Right now, if you read the news, it looks like weed might be here to stay as more states learn how to cash in. Is it true Rome allowed everyone to smoke pot to appease their citizens before their civilization fell? Is big brother taking over like conspiracy theorists on YouTube have warned? Could the election of a new president in 2016 kill this weed boom we’re having? Enquiring minds want to know.
What effects do you think the expansion of the pot industry will have? Let us know on social media or in the comments below.