The Popularity of Marijuana Stocks
Future of the Marijuana Industry in the US
The categorization of marijuana comes under the US Drug Enforcement Administration (DEA). It is a restricted drug and is considered as a mind-altering substance like LSD, heroin. Despite these facts, four US states have legalized it for recreational purpose and twenty-three states have legalized it for medical usage. American prefer to get this drug legalized and this has created a big hype among the politicians and the government officials. Marijuana can undoubtedly be used in the medical field for the treatment of physical and mental ailments associated with some of the chronic diseases. The industry still faces many hurdles due to the probability of misuse it could do to the general people who use it only for recreational purposes.
Benefits to States
The legalization of marijuana has been advantageous for the states socially and economically.
Taking an example of the state of Colorado, there was a collection of taxes (licensing, taxation and fee) of $13.9 million in 2014-15. In the next year, the figures attained an increment of 70% and the taxes of $23.7 million were collected. Apart from this benefit, the states have been benefited from the decline of the crime rate. The similar addition to taxes and decrement in crime rate was observed in Washington state also. This is the primary consideration of the states to consider the benefits related to marijuana for the savings of billions for the states.
Medical uses of Marijuana
Legalization of marijuana not only benefits the government by saving the funds, it is undoubtedly a great step for the public and private institutes to treat many chronic diseases. There are practical solutions confirming the efficacy of the drug in relieving physical pain due to chronic diseases and stabilizing mental balance. It can reduce the spreading of cancer and halts the progress of Alzheimer’s Disease which is a great achievement. There are also stats illustrating the combating symptoms of PTSDs and other psychological issues among the veteran community. The private sector has led many companies to like to study the effects of THC (Tetra-Hydro-Cannabinol) for developing the new treatments to give pain-relieving effects.
Marijuana has many social, medicinal and economic benefits. Before making an investment in the cannabis sector, it is important to understand the important points. It is a powerful drug having positive and negative sides and hence, comes under controversy. The medical uses of marijuana are still under the process of confirmation and the treatment of side-effects of chronic diseases like HIV infection, cancer therapy, and others, are treated by this drug at low-mid level. The recreational marijuana could reduce the prices of this drug and the tax revenue figures for the state would gradually decrease with it.
To conclude, it would be too early to cite the experiences of the states which have legalized cannabis for medical or recreational use. The evidence is on the promising notes by far. The medical industry is still making in-depth researches for marijuana usage for chronic diseases and hence, the investments in cannabis segment would be still speculative. Investors must hold on the betting for the full federal legalization of marijuana for now.