Marijuana industry poised for supercharged growth
Trump signals he’ll abide by states’ legalization
DENVER – America’s fast-growing marijuana industry appears poised for supercharged growth after winning what cannabis entrepreneurs see as approval from the Trump administration to forge ahead.
The legal market was already growing exponentially despite fears of a federal crackdown by Attorney General Jeff Sessions, but President Donald Trump’s signal that he’ll respect state legalization may swing open the floodgates by reassuring traditional investors, entrepreneurs and lawmakers that it’s OK to jump in.
The Obama administration had promised it would leave well-run state pot programs alone, but Sessions rescinded that promise in January, throwing the industry into chaos. Many traditional investors have shied away from pouring money into the industry over fears they’d be treated like drug traffickers, and a strong sign of support from Trump might provide the reassurance they’re seeking.
Last week, U.S. Sen. Cory Gardner, R-Colo., said Trump promised him he’d respect states’ rights when it comes to legal pot and would support a federallevel change to bring consistency. Several members of Congress have introduced bills to either legalize cannabis or at least remove it as a Schedule 1 controlled substance.
Across the country, risk-takers have poured billions of dollars into the industry while knowing they could be arrested by federal agents. They’ve built a powerful network of businesses poised to take advantage of a more favorable federal climate.
That industry has already woven itself into the fabric of the states where pot is legal, providing tens of thousands of jobs and generating billions of dollars in tax revenue. Experts say those numbers are now likely to rise rapidly thanks to Trump’s promised hands-off approach and support of some sort of federal solution.
“Every day we wake up and build this industry. And every day we do that, it’s a little harder to shut it down,” said Daniel Yi, a spokesman for the California-based MedMen.
More than 60 percent of Americans believe marijuana should be legal, double its popularity in 2000, according to a January poll by the Pew Research Center. That comes against a backdrop of contrasting studies that have offered little insight into how legalization is affecting youth use, stoned driving and border-state black markets.
But Trump’s acceptance of popular state legalization reflects the reality and power of this increasingly important industry. Across the country, cannabis legalization is winning converts among skeptical cops and local politicians as new tax dollars pour into schools and scholarships, pay for road paving and drug treatment, and, if advocates have their way, lift up minority communities devastated by the “war on drugs.”
“It’s really fun to see people’s minds change,” Jen Lujan of California-based marijuana firm Eaze said.
Marijuana’s economic impact in particular has helped keep the focus on the positives of legalization. While most supporters agree that marijuana taxes haven’t been the boon many expected, the industry’s economic power is undeniable.
At least 121,000 people are already working directly in the nation’s homegrown marijuana industry, tending plants, trimming leaves and selling cannabis products to eager consumers, according to BDS Analytics and Arcview Market Research. For comparison, there are fewer than 50,000 coal miners, according to the federal Bureau of Labor Statistics.
Nine states — Alaska, California, Colorado, Oregon, Massachusetts, Maine, Nevada, Vermont and Washington, along with Washington D.C. — have legalized recreational pot use, although not all of them permit and tax sales. Those states selling pot have collected more than $1.6 billion in taxes since their legalization programs began, and California’s launch of legal sales earlier this year is expected to supercharge that number.
Medical and recreational cannabis sales will hit $11.7 billion this year, predicts cannabis analytics firm New Frontier Data, increase by 25 percent in 2019 and hit $25 billion in seven years.