fbpx
QQQ
+ 2.15
345.59
+ 0.62%
DIA
+ 3.22
335.56
+ 0.95%
SPY
+ 2.53
420.07
+ 0.6%
TLT
+ 0.23
143.04
+ 0.16%
GLD
-0.11
166.25
-0.07%

How Legalizing Marijuana Could Help Kick-Start The US Economy

April 28, 2020 4:43 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
How Legalizing Marijuana Could Help Kick-Start The US Economy

As shelter-in-place orders drag on and the U.S. economy limps through the second quarter, investors, economists and politicians are asking important questions about what the post-outbreak economy will look like and how quickly the U.S. can replace the 26 million jobs it has lost in 2020.

Many Americans have been turning to cannabis to help them get through the stress of the COVID-19 outbreak, but there’s a strong case that U.S. marijuana legalization could help the economy recover as well.

Throughout the downturn, states like Michigan and California have deemed cannabis an “essential” product not subject to mandatory shutdowns. In fact, cannabis sales have skyrocketed in many of those locations.

Yet these businesses deemed to be essential by local and state governments are still illegal on a federal level. On Tuesday, DataTrek Research co-founder Jessica Rabe said the cannabis industry has several unique characteristics that could be extremely beneficial to an economy trying to get back on its feet.

In states in which marijuana is decriminalized, the industry has provided a job boom. For example, there are now as many cannabis workers in Nevada as there are bartenders, according to Leafly. Massachusetts has more cannabis workers than hair stylists and cosmetologists.

Economics Of Cannabis

Rabe estimates that legalizing marijuana on a federal level could add 170,000 jobs in the states of New York and New Jersey alone.

At the same time, many of these jobs are relatively high-paying and do not require even a college degree, she said. According to Glassdoor, the median salary for a legal marijuana job in the U.S. in January 2019 was $58,500.

Rabe said she wouldn’t be surprised to see more politicians turn to cannabis as the U.S. recovers from the outbreak.

“Legalizing sales of recreational marijuana could add tens of thousands of high paying, quality jobs at all education levels in states across the US. Aside from tax revenue, this is another reason large US states like New York that have been deeply affected by the virus may try to speed up legalization,” she said.

Benzinga’s Take

One way for investors to play the boom in cannabis demand in legalized states and a potential outcry for U.S. federal legalization heading into the 2020 election is to buy U.S. multistate operators.

Earlier this month, Alan Brochstein, author of the 420 Investor and founding partner of New Cannabis Ventures, told Benzinga that MSOs Cresco Labs Inc (OTCQX:CRLBF), Curaleaf Holdings Inc (OTCQX:CURLF), Green Thumb Industries Inc (OTCQX:GTBIF) and Trulieve Cannabis Corp (OTCQX:TCNNF) are the safest bets for cannabis investors in the current environment.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

Related Links:

Cannabis Stock Rally Puts Short Sellers In The Red For 2020

These 4 Cannabis Stocks Are The Safest Bets Right Now, Expert Says

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Cannabis Analysts From Piper Sandler, Jefferies, Cowen On Their Favorite Companies, Investments

Some of the most high-profile cannabis analysts shared their insights in a thrilling discussion about trends, strategies and forecasts at the Virtual Benzinga Cannabis Capital Conference. Alan Brochstein, the founder of 420 Investor and New Cannabis Ventures, led the discussion. read more

These 4 Cannabis Stocks Are The Safest Bets Right Now, Expert Says

It has been a brutal couple of years for cannabis investors. With most leading stocks down even further since the COVID-19 outbreak, cannabis investors are now weighing whether to cut their losses or buy the dip in a bet on a rebound ahead. read more

Will Cannabis Stocks Bounce Back In 2020?

Cantor Reaffirms Overweight Rating On Cresco Stock Post Earnings Based On The Company's Franchise Strength

Vertically integrated cannabis company Cresco Labs Inc. read more