Legal marijuana yet again proves to be beneficial for economies that implement it, with Michigan bringing in close to half a million in its first year of cannabis legalization.
Serving as yet another testament to the economic benefits that come with cannabis legalization, Michigan sold nearly $440 million in the first year of its legal cannabis program.
Marijuana Business Factbook estimates that Michigan could sell between $1.9 billion to $2.4 billion in recreational cannabis by 2024.
Moreover, when one looks at the current trajectory of the industry, such as the fact that Detroit recently approved 75 recreational marijuana stores, the state looks poised to bring in over $800,000 in its second year of legalization.
Michigan's recreational marijuana sales soared 566%, climbing from $9.8 million in January 2020 to $65.5 million in August.
Initially, when the state legalized recreational use cannabis, Michigan struggled with supply issues, which drove up the price of cannabis for consumers. As these supply issues begin to be resolved, prices will come down and Michigan will be able to capture more of the illicit marijuana market and see even higher sales.
Canada suffered similar issues when it first legalized recreational marijuana for adult use in 2018, as regulatory and supply-side issues led to a persistent black market in the country, while also pushing prices of cannabis up.
While these issues still persist, Canada has managed to increase the legal marijuana market from just 21% of total cannabis consumption in 2018 to 46% in 2020. This was achieved through improving its supplies of cannabis and some of its regulatory issues such as scrapping the controversial "pot lottery" that existed in Canada.
U.S. States such as Illinois have enjoyed similar tax generation through the legalization of cannabis, having brought in over USD $500 million since the beginning of the year, and over $75 million in cannabis sales in October alone.
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