One of America’s greatest comparative advantages is its open and accessible public markets. We’ve seen in the last year how the strength of the American Stock Market helped the world avoid a financial and economic crisis. US equities have become a global store of value. This makes sense: in the information age, wealth is created from data and digital services. Synergies are realized when the strength of public companies like Amazon and Apple anchor the markets and help stabilize equity prices for other companies navigating Covid. A regular person doesn’t need their 401k invested in Amazon to still benefit from Amazon being a strong public company.
With that being said, the black market marijuana industry is nearly $100 Billion. Black markets don’t help the public market economy. If marijuana were Federally legalized, the industry would inevitably become publicized. The value added to the markets from public market access to marijuana infrastructure would be equal to the value of Amazon. By keeping marijuana illegal, legislatures are making a conscious decision to avoid strengthening one of America’s greatest assets: the public market economy.
There hasn’t been a financial crisis since Marijuana was normalized and and somewhat legalized nearly a decade ago. Marijuana imports have ended and domestic Marijuana production has skyrocketed. The core seed-to-sale pipeline is US based yields the highest quality cannabis in the world. The Federal government is missing out on over $25 billion a year in tax revenues. The banking industry would see more inflows and a transition to a digital cash economy would happen sooner. In terms of social equality, legalizing marijuana will put an end to the racial discrimination happening through the enforcement of archaic marijuana laws.
In short, in a time when money printing is high and government liabilities are increasing, it doesn’t make sense to keep marijuana illegal. Opponents of marijuana legalization are effectively defending the $100 billion dollar a year black market and preventing the public markets from becoming stronger.