As of 2018, Canada’s economy has gone through some notable changes. With the legalization of marijuana, a new market exploded into view: the legal and regulated weed market, now reaching a worth of multiple billions. And you can see it on the streets. Cannabis-themed stores line the streets, people of all demographics and backgrounds wander freely with their personal supply, and the money must be going somewhere, right?
Well, it turns out the money is going somewhere, and those places might even surprise you. Take a look at the effects that we can see the legalization of marijuana is having on Canada’s economy.
We’re breaking down the economic effects of legalizing marijuana in Canada.
The effect on taxes
The explosion of a new market that can be taxed has created a new, and deep, source of income for Canada. The Canadian marijuana market is currently expected to be between $5 billion and $8 billion per annum. There might not be much of a difference to the economy, according to critics, but it can now be accounted for and taxed, putting what was once a crime back into the community as a good resource.
But, critics, the difference here isn’t as small as you might think. With a levy tax of $1 per gram of marijuana or 10% of the sale, whichever is higher, the government is earning $500 to $800 million in additional taxes every year. This means that evening gummy you’re enjoying is paying for your schools and hospitals.
It’s also worth mentioning that with the legality of marijuana assured, legitimate businesses now had the freedom to flourish. Once they have their license, they could get a premise, or a website so people could buy weed edibles online, and not have to worry about getting shut down by the government. With an industry growing, you can expect to see the government gain even more in taxes every year.
The effect on tourism
Look, Amsterdam is a beautiful city. It has plenty of cultural heritage specific to the city and the wider country, from sports to arts to the lifestyle and pace of the city. Notably, though, Amsterdam – and The Netherlands as a whole – has legalised cannabis products and regulates coffeeshops that sell them. This position grants them a unique position in Europe and tourists visit accordingly. However, Amsterdam’s current mayor proposed a measure to restrict tourists from purchasing marijuana from legal vendors. However, this was rebuffed by the vendors and other politicians.
When it comes to North America, the US is the place that comes to mind when you think of tourists. People want to see the things they’ve only witnessed in movies, with the lore of literature and history behind it. But Canada can fight back now, not only with its own rich history and scenic beauty, but with something the US has yet to legalise: marijuana.
It’s easy to see why higher-ups are hoping that the legalization of marijuana might attract the same sort of tourists who find themselves in Amsterdam, with a far less lengthy flight. Its got its own cultural impact, its own beautiful nature and cities, and now something that most of the world can’t offer.
The effect on real estate
Real estate isn’t the first thing you think of when you come up with arguments for why marijuana should be legalised, but in this economy with western housing markets set to crash any minute, any boost will be taken.
Canada is seeing a positive impact from the effects of marijuana legalisation on its real estate. Housing might still be a struggle, but it’s less so with other aspects of real estate holding it up. Warehouses and stores are being snapped up as the industry expands. As mentioned, legitimate businesses are coming out of the woodwork and they need places to set up.
And the effect on tourism is aiding things too since the demand for rented apartments and houses is set to go up as more tourists decide they could do with a long weekend away in the Canadian countryside with some relaxing edibles.
There is set to be a lot of advantages to legalising marijuana, and the effects of it we can already see in everyday life.
