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The Effect of Legalizing Marijuana on the Canadian Economy

The Effect of Legalizing Marijuana on the Canadian Economy
In several nations, marijuana is one of the oldest naturally psychoactive drugs known to humans and grows naturally. While marijuana has been used globally for thousands of years, it is still illegal to cultivate for both medicinal and recreational purposes. Even though the use of marijuana for recreational purposes remains illegal, its use in medical treatment remains legal.¬† Despite almost a century of prohibition, marijuana remains the most commonly consumed illegal drug in Canada, with 43 percent of Canadians claiming to have used it at some point in their lives. Canadian young people have the highest rate of marijuana usage among developed countries. In several parts of the world, the campaign to ensure cannabis legalization has been going on. Legalizing marijuana ensures that adults can legally have access to marijuana. In the world, there are only two countries where cannabis or marijuana is now fully legal. Uruguay and Canada are those nations. This makes Canada the only nation to have allowed the recreational use and selling of marijuana in the developed world. The Canadian government’s newly implemented change has led to a lively debate on both sides. Nonetheless, several analysts claim that the real reason why the Canadian government has legalized cannabis is the economy. We will take a closer look at this article on the economic effects of the legalization of Canada.

Economic Impacts

  • Tax revenue:
In favour of the legalization of marijuana, the most appealing point is the increased tax revenue it will bring to the Canadian economy. A major advantage of prohibition is the legalization of marijuana, as it helps the government to raise revenue from the legalized drug. In particular, Canada’s high demand for recreational marijuana implies that legalization of the drug would yield considerable tax revenue. Without taxes, the free market price of marijuana is projected to be especially low. This helps the government to implement higher taxes on marijuana while keeping the price at a reasonable level with other intoxicants. The tax revenue generated is used for the state’s public-school capital construction assistance fund and public services such as drug abuse and control of the use of marijuana to ensure that meaningful results occur alongside the significant economic boost.
  • Job opportunities:
Legalization could lead to the jobs of more people who can cultivate and package marijuana for sale in authorized cultivate-ops by the government. For people who can work in training sessions and health promotion programs to encourage responsible use of the drug, it may also create several other job opportunities. Nevertheless, legalization will likely decrease total employment in Canada due to automation and economies of scale, since the number of legal jobs created (e.g. farmers, manufacturers, and accountants) will likely be smaller compared to the number of illegal jobs removed.
  • Effect on Government expenses¬†
Legalizing cannabis is like a government boon. This is because not only do the profits go up considerably, but the expenditures are also significantly reduced. Besides, marijuana legalization in Canada could dramatically reduce the government’s spending on enforcement of federal marijuana laws. The number of crimes in Canada would decrease a lot if the possession and selling of marijuana are decriminalized. In terms of law enforcement expenses, the lack of addicted gangs would save the Canadian government a lot of money. The number of people locked up in prisons would also decline, decreasing the cost of operating prisons and then the cost of rehabilitating inmates later on.
  • Effects on Tourism ¬†
Canada is likely to cater to individuals who are banned from other countries that use marijuana. The government of Canada is very hopeful that Canada will be visited by people from all over the world and that cannabis tourism will also result in a large rise in both private and government revenues.
  • Effects on Real Estate
Lastly, Canada’s real estate sector expects a positive effect from the legalization of cannabis. This is because new demand for warehouses and shops has been created that will assist the real estate sector as more commercial and industrial units are sold out or leased. It is also possible that the demand for affordable housing will go up. This is because it is legal for states and nations where cannabis attracts many more tourists. As a result of its cannabis legalization policies, the government of Canada is expected to reap substantial economic benefits, but the Legalization in Canada could lead to a rise in adult recreational usage of the substance, which could in turn lead to health hazards associated with the use of the substance. Increase in traffic accidents linked with marijuana. Pearls of Wisdom: Marijuana legalization not only can raise tax revenue from the subsequent taxes that will arise, but it will also allow the government to save the tax dollars of people currently spending on prohibition legislation. Profits and tax dollars saved will be invested in services for public education and health promotion. Also, legalization would eliminate the illegal element from the marijuana industry and reduce the magnitude of the black market in Canada and its social consequences. Legal marijuana, however, can also lead to certain issues in public health, including a rise in substance usage, overdoses, and injuries. Legalization could be successful only if adequate policies were developed by the Canadian government to keep the drug out of the hands of minors, to raise awareness and knowledge of the drug’s adverse effects, and to discourage impaired driving.

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