You can call it Kush, Marijuana, pot, weed, or cannabis. Who isn’t familiar with it. The name is always going to be controversial. But what not all of us are aware of is that it represents a business we need to get distinctions of. This is the most used illegal drug in the world.
In America the situation becomes very complex, in many states it’s forbidden, in some is legal for medical use and in others for recreational use. There is a sudden surge of tax dollars that has alleviated some fears about the drug's consequences and has accelerated its legalization. Despite this surge in commercial activity, cannabis remains illegal at the federal level.
But this conflict is probably not going to last that long, because some states (even some of the Republican states) are legalizing it. However, the cloud of uncertainty hanging over the recreational marijuana industry is deterring some consumers, who are concerned that it will be criminalized under the new government.
In this article we want to talk about some Pros and Cons regarding the Business of Marijuanas.
Think about it, the cannabis business was ran by tons of small business people for years, not that it is becoming legal, it’s really has been difficult to get in the business legally and for established dispensary’s, dealing with covid and laws.
First, we have the pros, with the medicinal uses for cannabis use, which prove to be more efficacious than other drugs.
- It helps losing weight because it regulates insulin while maintaining caloric intake.
- It prevents diabetes.
- It helps fighting cancer.
- It restrains seizure episodes.
- It attenuates anxiety and helps to mitigate depression.
- It also delays Alzheimer’s disease development.
- It can be a relief for patients with multiple sclerosis because it lessens pain.
- It can also be a useful resource against alcoholism.
- It can improve motor skills.
Advocates of legalizing marijuana think it’ll be truly useful for the economy. And among these we have many celebrities, like Steve Jobs. According to some data, it could bring $24 billion by 2025. Different studies suggest that this business could create more tax revenue than alcohol.
Too many countries have being legalizing marijuana. For instance, in UK, a Bill is now on the table to legalize medical the drug, which is currently classified as a Class B (less dangerous than class A, and they imply harsh penalties)
Legalization generates revenue, and this revenue drives reform. The Marijuana Industry in the United States earned $9 billion in 2017, and that number is predicted to rise as states begin to reform their laws. Nevada collected $25 million in taxes in the six months of January 2018, while Colorado, Washington, and Oregon – the three early legalizers – have collected an estimated $1.3 billion in tax revenue to date.
Recent Data estimates that federal legalization would create an additional $132 billion in tax revenue and even a million new jobs within the next decade. This, though, was based on the actual corporate tax rate of 35%.
Difficult for a small business person to open dispensaries nearby, without large $$$$ start-up cost.
Among the many Cons we have the fact that in many places, as we have just said above concerning UK, it’s considered to be a dangerous drug (and one that it will get you penalized.)
The possession and use of marijuana in USA remains a federal felony. This is due to the fact that the federal government has limiting finances where the marijuana industry doesn’t represent a priority.
Although we’ve evidenced that cannabis has a wide range of health advantages, this does not mean that it could also have the ability to produce further health problems.
Cannabis is associated with increasing symptoms of depression and anxiety in some people, as well as the development of schizophrenia in those people with a high sensitivity to substances.
This situation that exacerbates psychiatric disorders is particularly worrying when thinking about the United States' well-documented difficulties in recognizing and handling these psychiatric cases.
Another particularly negative evidence for Cannabis is the one that concerns the youth. Research on young people is still pretty scarce and we don’t posses systematic information, despite some evidence that says that if it’s used frequently can change the structure of developing brains.
Cannabis is not recommended for pregnant or breastfeeding mothers, although this still extends to alcohol and certain prescriptions. Cannabis users who smoke more have an elevated risk of bronchitis.
According to some evidence, there has been an increase of Marijuana-related traffic accidents in Colorado. And the same situation applies to California, Nevada, Oregon, and Washington, where we found evidence that links crash risk with legalized cannabis.
Many lobbying organizations see this issue as a potential way to spark a health crisis. That will be hazardous in many demographic scales.
The burgeoning cannabis industry has resulted in an influx of funds and an increase in federal lobbying spending. While some argue that this is redressing the balance - much more money has been expended on anti-weed and other opioid campaigns - some are concerned about this newfound influence.
Some worry that the cannabis industry will invest time to hide any health threats we have referred or even other problems, thus accelerating its development ahead of proper oversight.
The drug's global dominance may push away many smaller businesses that started as passion projects, potentially raising the price to the point where consumers turn to unregulated suppliers because they are cheaper and more lucrative.
As a result, the huge biggar portion of marijuana companies is unbanked and must perform their trades in cash. With this position, commercial landlords, who usually do not accept cash payments, will have trouble here. It also makes them magnets for burglary, which can necessitate increased surveillance and annoy other and may not be that profitable in the first place.
This also implies that pot businesses would have a harder time obtaining financing for expansion or tempering an industry downturn. Given the supposed growth of the market, it might result in increased uncertainty.
Despite the fact that cannabis has proved to be a profitable industry, nothing prevents the federal government from imposing a moratorium on all businesses, particularly those of a more entrepreneurial bent. Prospective buyers should prepare for future purchases by learning about the drug's legal status if they want this business to succeed.