The marijuana industry is growing at a rapid rate and any serious investor who is not at least doing his or her research about investing in the marijuana industry could be missing out on the biggest gold rush of the 21st century.
Below are three solid reason why we know for a fact that marijuana should be legalize at the federal reasons and for these reasons we also believe it will be legalize federally.
We expect marijuana to be legal at the federal level by 2020 and here is why:
1. A majority of the public favors legalization
Polls have pretty consistently shown that a majority of the public wants marijuana to be legal. Gallup’s October 2016 poll and CBS News’ April 2017 poll found 60% and 61%, respectively, support legal marijuana throughout the United States. A separate poll from Quinnipiac University in April of this year found support for legalizing medical cannabis at an overwhelming 94%, compared with 5% who opposed the idea.
Congress is supposed to represent the will of the people. Therefore, if lawmakers fail to make changes to cannabis’ scheduling on Capitol Hill that align with the will of the public, these elected officials could run the risk of being voted out of office. It’s unclear if marijuana is a strong enough standalone topic for voters to consider not voting for an incumbent candidate, but as support for pot shifts higher, it becomes an increasingly more likely.
2. Clinical data suggests it can help improve patient quality of life
Second, it would be difficult to deny that marijuana hasn’t demonstrated positive benefits in university-run and Food and Drug Administration-approved clinical studies. For instance, a study published in the American Public Health Association just this past week found that since Colorado has legalized recreational cannabis, the percentage of opioid-related deaths has declined by 6.5%. That halted a 14-year trend of an increasing number of opioid-related deaths in the state. The study suggests that cannabis may be an alternative to pain-fighting opioids, and a much safer one at that.
In terms of clinical studies, GW Pharmaceuticals (NASDAQ: GWPH) is looking to be a pioneer of cannabinoid-based drug development. Its lead drug, Epidiolex, is an oral cannabidiol-based drug (cannabidiol is the non-psychoactive component of cannabis) that easily met its primary endpoint of a statistically significant reduction in seizure frequency for two rare types of childhood-onset epilepsy, Dravet syndrome and Lennox-Gastaut syndrome. In particular, GW Pharmaceuticals’ drug reduced seizure frequency in Dravet syndrome patients by 39% from the baseline.
Legalizing cannabis could mean game-changing medical discoveries for certain ailments, and broader access for patients.
3. It’s a potentially new source of revenue and jobs
Legalizing marijuana could also be a boon for the economy and individual states. According to a report released earlier this year from New Frontier Data, the cannabis industry will have created an estimated 283,422 jobs by the year 2020. That’s more jobs than will have been created by the manufacturing sector, utility sector, or even government sector, based on employment projections from the Bureau of Labor Statistics. Since the U.S. economy is heavily driven by consumption, more jobs should yield more disposable income for consumers.
Legalizing marijuana also opens up a new source of revenue for the states, and perhaps even the federal government. To be clear, tax revenue derived from the sale of medical and recreational weed wouldn’t single handedly close massive budget deficits — but it’d be a welcome start. In Colorado, for example, nearly $200 million in tax revenue was collected in 2016 on just over $1.3 billion in legal sales. California’s recreational-pot industry, when up and running, might wind up generating $1 billion or more annually in tax revenue.