How Legalization of Cannabis Affect Positively and Negatively to Canadian Economy?

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How Legalization of Cannabis Affect Positively and Negatively to Canadian Economy?

Abstract

Before 2018, cannabis is illegal in Canada and was used for medical purpose only. On 17th October Prime Minister of Canada, Justin Trudeau legalize marijuana for recreational purposes. It is the naturally grown plant which contains THC (tetrahydrocannabinol) and CBD (cannabidiol). It is the hot topic to debate in Canada whether it is good for economy and people or not? There are some positive and negative effects of legalization on the Canadian economy. After the legalization, on the individual level households got more job opportunities and utility level also increased for them. Moreover, on the federal level the GDP and tax revenues are increased by double. Additionally, legalization is a golden chance for business people to get profit from this decision. On the other side, marijuana sellers created the black market because government set the price floor for cannabis. According to the law of supply, when the price goes down, quantity also goes down. This low quantity product creates harm for the body of human. Thus, health related problems are increasing and government has to pay more money on medical of people. At the end, we suggested that government should aware people about the side effects of cannabis. So that, both individual and nation grows properly.

Cannabis is the street drug that comes from the cannabis plant (Marijuana). It is one of the naturally occurring substances which are used by people from a very long time. Mainly, Cannabis is indigenous to central Asian and Indian subcontinents. It is a drug which can be grown under any climatic conditions and in any geographical region of the world. As a consequence, it has gained popularity throughout the globe and produced worldwide on a large scale for various purposes. Apart from this, cannabis is known by different names such as ganja, smoke, marvana, pot, in different countries. The two main ingredients of cannabis are THC (tetrahydrocannabinol) and CBD (cannabidiol). CBD is non-psychoactive, means it would not get you high and is mainly used for medical purpose. On the other hand, THC is a component which is responsible for high state of mood or behavior and usually used for recreation. For example, In Canada, mostly people use this drug as a recreational activity because it gives them pleasure and affect their mood. They take it as a trial or fun, and this has been proved by reporting more than 14% of residents (aged 15 and over) of Nova Scotia and British Columbia (Canada) who confessed inhalation of cannabis at least once in their life for just enjoyment, in a survey Canadian Community Health Survey-Mental Health (CCHS-MH) 2012, likewise, this figure was almost 10% in Prince Edward Island and Saskatchewan (Hajizadeh, 2016). In 2018, Cannabis is legalized by Canadian government so that anyone can use it publicly. After legalization, it is affecting the society negatively as well as positively. To exemplify, decrease in social health and boost in economy of Canada. As each coin has two sides, we as a group also think cannabis has many benefits for the community, but it has affected the individual health badly too. In addition, this essay will suggest some resolutions to combat this growing issue and how marijuana’s proper use could be ensured to make society more prosperous.

Positive effects of cannabis on economy

Employment got increased

In terms of employment, cannabis increased the income and jobs for Canadians and for immigrants as well. The business of marijuana is increasing rapidly. According to indeed, the top employment-related search engine shows that jobs related to cannabis tripled in past years and interest in these jobs is quadrant. During the first six months of 2019, the share of cannabis-related job postings rose by 41%. Legalization of this will also help to boost agricultural and transportation sector of the nation, as it would help in the rise of the economy by providing employment to unskilled Canadians and immigrants. Incline in jobs will automatically lead to great rise in revenues, proving beneficial for Canadian economy. As Setting up pot nurseries and dispensaries would be the initial step for the states that cast a ballot for medicinal marijuana. These would create employment as well as set the ball moving for monetary action in the pot business in these regions. On account of states like California and Nevada where such foundation as of now exists, the financial effect has gotten increasingly quantifiable as the part has developed. For example, A RCG Economics and Marijuana Policy Group study on Nevada says that legitimizing recreational marijuana in the state could bolster more than 41,000 employments till 2024 and produce over $1.7 billion in labor salary. The ICF study appraises at any rate 81,000 extra immediate, circuitous and initiated occupations in California because of legitimized weed deals. It additionally extends an expansion in labor income by at least $3.5 billion.

Boost up tax revenue & Rise in Canadian GDP

After the legalization of marijuana, the government can bring back the black market money into official use and earn profits from it. As earlier, in black marketing the sellers and the buyers were not paying any kind of taxes to the government. However, now imposing taxes on this will allow the federal treasures to be filled and earn high profits. As Justin Trudeau, the current prime minister of Canada, once in his election campaign he stated that, legalizing marijuana would reduce the estimated C$6 billion in profits from marijuana sales from the black market. Superior to expected offers of cannabis in Colorado and Washington in the course of recent years have brought about light charge incomes. In 2015, Colorado gathered more than $135 million in charges and expenses on medicinal and recreational pot. Deals in the state totaled over $996 million. Deals in North America became 30%, to $6.7 billion, in 2016, and is anticipated to increment to $20.1 billion by 2021 as per Arcview Market Research. Neighborhood examine bolsters this view too; a report from the Colorado State University-Pueblo’s Institute of Cannabis Research as of late found that the lawful cannabis industry has contributed more than $58 million to the nearby economy, essentially through expenses and different charges. Should pot become lawful on a government level, the advantages to the economy could be outstanding: a report from cannabis examination organization New Frontier proposes that governmentally lawful pot could produce an extra $131.8 billion in total bureaucratic duty income by 2025. According to Toronto-Dominion Bank, marijuana legalization should increase Canadas real GDP in 2019 by as much as C$8 billion (Fournier, 2018).

Saved Money of common people

Marijuana is not only a drug, but also a good medicine for many diseases. Before legalization, people buy it as a As it is legalized throughout Canada, so the price of this is decreased and any normal person can use it as a medical purpose. Considering the financial advantages of legitimate maryjane, it’s imperative to think about the cash that may be spared just as income that could be created through such a procedure. Right now, government weed authorization costs a few billion dollars for each year. A 2013 report by the American Civil Liberties Union found that the expenses around then were roughly $3.6 billion every year. The more expresses that authorize cannabis, the lower the expense of authorization would probably be; if maryjane somehow managed to be legitimized on a national level, these expenses would almost certainly drop extensively. In the event that maryjane were expelled from the rundown of controlled substances, far less court cases including the substance would go to preliminary, bringing about fewer imprisonments, and, thusly, more cash spared.

Investment opportunities

When cannabis was not legal investors used to invest on miniscale, but its legalization has allured more and more investors (throughout the globe) to invest on a large scale. According to the law of supply, when demand of any product increases the price goes high, therefore more and more businessmen want to earn more profit and quantity is also increased. Two examples are, Canopy Growth, a medical marijuana producer, went public in May 2016 at 1.76 Canadian dollars a share and is now trading at 23.60 Canadian dollars. Shares of MedReleaf, another producer, have surged 153 percent since the companys stock debut in June(Sullivan, 2018). Thus, legalization of cannabis is motivating the business mind people and Investing money on marijuana would also benefit the nation economically.

Negative sides on economy

The high demand for marijuana in Canada has resulted in the expansion of the black market and has put the power in the hands of illegal drug dealers to be the sole providers of the product with no accountability.

Environmental impact

Environment is very crucial part because we are taking oxygen from it.But, we human beingsIn 2016, the marijuana industry was responsible for approximately 393,053 pounds of CO2 emissions. Thus, the government has to invest more money on saving the environment in the future, because as much as use double the carbon emission in the air.

Heath issues

People are facing lots of diseases because of marijuana. Research presented at the 2018 meeting of the Society for Neuroscience showed that marijuana affects the developmental areas of the brain, responsible for self-control and planning. Therefore, the government has to spend more money on the health planning of their people. That is why; grass is not greener on the other side for federal government of Canada. Their earning and spending money both are same because the money they get from people after the legalization is equal to the money they spend on health problems. Moderate evidence suggests that regular marijuana users are more likely to experience suicidal thoughts, and there is a small increased risk of depression among marijuana users (David Railton). Also, physical power is decreasing that means less labour and less growth of country.

In conclusion, even though the economy of Canada is boosting because of legalization of cannabis but, on the flip side, it is having a negative impact on the youth of the country who get addicted towards it and ruins their life. Youth is the power and acts as an engine for the country’s growth. We think that precautions for marijuana should be shown to people properly. The policies, warning and publishing articles on the dark side of cannabis is not enough. The government should distribute vouchers and flyers to the people so that they will be aware from the negative effects of marijuana. Additionally, there should be seminars and animated plays for school students. These awareness actions can help to save the youths life as well as their future career by which they can concentrate on their career goal which can help a country to grow by leaps and bounds

References

Sullivan, P. (2018, January 26). As States Legalize Marijuana, Investors See an Opportunity. Retrieved from https://www.nytimes.com/2018/01/26/your-money/marijuana-investments.html.
Hajizadeh, M. (2016, August 1). Legalizing and Regulating Marijuana in Canada: Review of Potential Economic, Social, and Health Impacts. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4968247/.
Economic and Social Costs of Legalized Marijuana. (n.d.). Retrieved from http://www.ccu.edu/centennial/policy-briefs/marijuana-costs/.

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