As of now, the entire world is engrossed in fighting the Covid-19 pandemic. From governments implementing nationwide lockdowns to the medical fraternity toiling day and night to save lives, the corona virus has brought life to a standstill. While people are busy hoarding essential items like food and toiletries, there is another thing that is going off the shelves quickly. If you guessed cannabis, you are right.
With shops shutting down and social distancing becoming the norm, people are forced to stock up on cannabis. Like every other aspect of life, the pandemic may also impact the legalization of cannabis. Read on to find out if Covid-19 affects cannabis legalization positively or negatively.
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How Does Covid-19 Impact the Industry?
The entire world is now bearing the brunt of the corona virus pandemic. While the delivery channels for essential goods are taking a hit, a majority of non-essential shop owners are closing their doors during the lock down. This has left many people worrying about the availability of basic goods like food, clothes, toiletries, and other everyday products.
Similarly, cannabis users went into a frenzy when the government announced the lock down. They have been making purchases of huge amounts through trusted cannabis industry brands like High Supplies and are trying to gather up the stock that can last for months. While sales are certainly inclining, it means a shortage of products. In fact, it’s becoming increasingly difficult, especially for medical users, to get a steady supply of the herb. Instead of the stores, mail order marijuana services like CBDFx are assured to do well.
Owing to it, many states have declared cannabis an essential commodity. In the US, all of the states that have legalized the use of either medical or recreational cannabis have termed the herb as an essential product, allowing the marijuana businesses to operate freely during the lock down. It’s helping many medical users to get their cannabis flowers or products delivered at home while staying safe.
Not only that, but top government officials and experts are also speaking up in favor of cannabis. Representatives of some States are asking authorities to open up cannabis dispensaries for veterans with medical needs, while others are implementing bills to allow home delivery of the herb. The dispensaries are also adopting precautionary measures to ensure their staff and customers are safe from Covid-19.
How is the Pandemic Impacting the Legalization of Cannabis?
With the pandemic taking over the world, it has led to worries about a global economic slowdown. If you go by the expert’s opinion, the world is facing a steep recession, much like the Great Depression of the 1930’s. To fight back the lack of jobs and recession, governments are under pressure to release huge amounts of fiscal stimulus packages. Even organizations like the IMF and the UN are advocating the governments to act fast and find potential sources of taxation.
In the 20th century during The Great Depression, there was a ban on industries like alcohol. The US government then lifted the ban on alcohol and started taxing it in order to generate revenue. Experts believe that the governments will follow the same route this time, with cannabis in focus.
The US cannabis industry currently generates billions of dollars, but only a small part of it is legal. It means that the government is only able to tax and earn from a small fraction of the total sales. A similar phenomenon follows in countries around the globe, especially the ones that are yet to foray into the world of legal cannabis.
Giving legal status to cannabis will allow the government to tap into the pool of resources. It can be a huge financial incentive for the States that are yet to legalize cannabis. The example is a state like Washington, which reported cannabis sales of $400 million in 2019 and can be a motivating factor for other States. Not only is the consumer base widening with legalization, but the government is able to generate billions through taxable dollars. Besides economic experts like Jeffrey Milton, even health experts are advocating the legalization of the herb. With more and more evidence of benefits coming to light, it is becoming imperative to provide high-grade and legal cannabis to medical users. As the number of cannabis users rise, the buyers may start using new impressive varieties like the skittles strain.
The spread of novel coronavirus Covid-19 has affected the cannabis industry significantly. From harvesting to supply chains, all regulations surrounding the industry are impacted. While Covid-19 may have delayed the official processing and passing of bills for a short period, it has opened the doors to a long-term revolution.
The cannabis industry has a ready made market across the globe. There is no dearth of medical or recreational cannabis users. The legalization of the herb can enable the governments to earn the much-needed resources through taxation during this economic slowdown. The cannabis industry is now on the verge of a transformation, all credits to Covid-19.
This is a guest post by Rebecca S. This post has been edited for syntax and grammar. The Law offices of Jay Leiderman is not responsible for the accuracy of the content herein or any opinions or ideas expressed herein. This post is for entertainment and literary value and is not intended as legal advice. This post does not establish an attorney-client relationship of any sort. If you have legal questions about ideas presented herein please contact a lawyer knowledgeable in this field of practice.