How Would Marijuana Legalization Impact the Californian Economy?

STATES CHRONICLE – A new study sponsored by the state of California has analyzed the impact that legalizing marijuana would have on the local economy. It discovered how a market of legal cannabis would be worth more than $5 billion. Also, it will boost the economy by turning the state into a top destination for pot lovers. However, there are drawbacks as well.

Some Californians might still choose to buy pot from the illegal market

The study was developed by the Agricultural Issues Center of the University of California, and looked for the advantages of a legal marijuana market. Great economic boosts are to come, but only if people start buying pot legally.

Now you may wonder why they shouldn’t go acquire marijuana from the official market, once it became legal. Researchers suggest that around 29 percent of the consumer might stick to the black market at the beginning, since this would be cheaper.

Before selling cannabis, producers need to test and track it. This would lead to a tax increase, and around 15 percent of its value should go to these taxes. Therefore, some consumers might choose to still buy pot illegally and avoid paying these taxes.

California officials want to fully bring marijuana into legality

The State Bureau of Marijuana Control was the institution which sponsored this study. They saw that the economic prospect is encouraging, and hope to manage to convince black market consumers to switch to the legal one.

This November, the bill proposing the legalization of recreational marijuana use will be presented., Then, the state hopes to start issuing licenses for producers to test, transport, and sell cannabis as early as January next year.

However, officials will have to struggle with the underground market, which is already well-established and hard to bring into legality. However, they hope they would be able to annihilate this activity and make marijuana selling transparent.
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