GDP Weed and Canada — Marijuana is good for the Economy
Legalization is good for Canada. It frees up police resources, allows better access to essential medicine, and ultimately allows adults sovereignty over their own body and consciousness. As it turns out, marijuana is good for the economy as well. But is there a significant correlation between Canada’s GDP and weed?
A new study conducted by TD Bank estimated that legalization will ad as much as $8 billion to the economy. The domestic economy will benefit from trade in cannabis as well with a predicted one time boost of $2 trillion from cannabis-related trade.
Legalization has prompted Toronto Dominion Bank to alter its predicted growth forecast from its previous assessment in June. A 2.2 percent growth is anticipated for the remainder of 2018 and 2019.
Is the Positive Correlation Between GDP and Weed Sustainable?
TD warns that some of the effects of legalization might be overstated. The bank stated that much of this trade existed within the Canadian economy previously, but could not be mapped.
Illegal industries can be difficult to follow. By the nature of being illicit, estimates on the rates of consumption can be unreliable. Many people will be reluctant to speak openly about something that could get them arrested. So marijuana is good for the economy, but is this trend sustainable and reliable?
In some countries such as Holland, legalization actually decreases cannabis consumption. However, in Canada, it appears the inverse may be true. Statistics Canada publishes data on Cannabis Economic Accounts and their findings are optimistic, to say the least. Canadian households spent 1.2% more on medical and nonmedical marijuana in the previous quarter. In the first three months of the year, that increase was as much as 1.4%.
This increase is not a short-term boost due to recent cannabis mania either. Marijuana use has risen as much as 72 percent since the first quarter of 2001, the year that marked the legalization of medicinal cannabis in Canada.
One can only assume that the growth of the GDP and weed having a positive effect on the economy, will continue upon this path.
Legalization Means More Ways to Use Marijuana
This week, the world of cannabis stood still as soft drink giant Coke met with Aurora Cannabis to discuss the possibility of creating a non-psychoactive CBD health beverage. Large corporations making forays into cannabis is nothing new.
So far big alcohol has looked to jump on this lucrative bandwagon as Molson, Heineken, and Constellation Brands have all made significant investments, into cannabis or created marijuana products of their own.
It is expected that these investments will result in improved marketing and a total image makeover of the long-maligned marijuana industry. With negative perceptions about inhaling smoke, and significant restrictions on where stoners can light up, don’t be surprised if the future of cannabis is edible. Corporate America is bound to think of 1000 new ways to make cannabis more enticing to those who are put off by smoke.
With the stigma around cannabis dying, and more enticing ways to consume, expect the positive correlation between the Canadian GDP and Marijuana to continue.
By: Stefan Hosko