The debate over whether or not to legalize cannabis for medical and recreational purposes in the UK has been going on for decades. Despite repeated requests to follow in the footsteps of Canada and the US and opt for at least partial legalization, the law has barely budged.
Cannabis remains a Class B controlled substance in the United Kingdom, with severe legal penalties for those found in possession of cannabis or distributing the drug.
While many arguments in favor of legalization focus on the purported medical benefits of certain cannabis compounds, relatively little attention has been paid to the potential economic benefits from such an approach. However, recent studies have attempted to look at exactly that. Let’s take a closer look and see what, if any, economic benefits might come from the legalization of cannabis.
a growth market
If one thing is clear, it is that cannabis is already a big hit in the UK. Estimates for the Black Cannabis Market have placed its total annual revenue at around £2.6 billion per year, although this is just a conservative estimate. In previous studies into the economic rationale for legalization, it has been estimated that such a move could add billions of pounds to the coffers, especially if recreational cannabis was taxed at the same level as alcohol or cigarettes. People pay for cannabis and if it were made legal a much larger number would likely do so. This can prove to be a serious boon to the cash-starved treasury.
Given the economic elements of the argument, potential profit and tax revenue are only one side of the story. Equally important is the amount that can be saved by legalizing cannabis. UK officials spend billions of pounds Enforcing laws against cannabis, much of which is spent dismantling confiscated batches of the plant. Meanwhile, countless additional funds are spent on incarceration, surveillance and legal fees. If cannabis is legalized, the bulk of these costs would evaporate overnight, freeing up public money for more pressing matters.
How are cannabis companies doing?
Any analysis of the economic impact of cannabis must consider companies that manufacture cannabis on a large scale for legal markets. Chief among these is Canada, which is one of the only countries to legalize the drug at the federal level. As we’ve seen, some of the most successful cannabis companies have become thriving, legitimate corporations employing large numbers of people.
this break of most popular cannabis stocks Just as it shows how major producers like Cellular Goods and Sundial Growers issue shares that are freely traded on the stock exchange, investors break their stakes in these fast-growing companies. Canada’s success shows how legalization can open up entirely new sectors of the economy, bringing with it investment and jobs.
It is clear that we are far from legalization in the UK, but the current global trend towards liberalization suggests that such a future may not be as distant as it seems at present.