It’s 2018 and Pot is now legal in California.
Advocates have been pushing for full legalization for well over a decade.
The State resisted...till now!
California Faces Severe Fiscal Troubles!
Next week Gov. Jerry Brown will unveil the projection for the State Budget for 2018.
If it were a sovereign nation, California's $2.5 trillion economy would make it the sixth-largest economy in the world.
Drought, wild fires and other natural disasters have done very little damage compared to the severe fiscal damage seen over the past decade!
Middle-income workers have left in droves, seeking lower living costs and more-affordable housing and job opportunities in nearby states.
Over the last decade, 7 million Californians departed, while just 5.7 million people moved in from other states, a net loss of more than 1 million in population.
The planned hike in the state minimum wage to $15 an hour, which could destroy over half a million jobs, will only make things worse.
And businesses are leaving due largely to its tax and regulatory policies.
According to Brown, the deficit will be 1.6 billion because tax revenues are lower than expected.
Is it too late for Pot to save California?
A report from the cannabis industry estimates sales of cannabis to hit $3.7 billion in 2018 alone, and predict that number will increase to $5.1 billion in 2019.
To give you a realistic comparison, beer sales in California in 2017 hit over 5 billion!
With a population of close to 40 million the California cannabis industry is set to become a huge source of revenue for the State.
By 2021, according to BDS Analytic, California will rake in up to $1.4 billion from taxes on recreational marijuana purchases.
And that doesn’t take into account all other commerce that will spike as a direct result of legal weed!
According to a new State-sponsored economic study, California will become a strong magnet for marijuana tourism, a market that’s rapidly developing in other parts of the country.
Tourism already makes up a fairly large part of California economy but when you add cannabis merchandise into the mix, the numbers get much bigger.
If the projections are correct and in my opinion, they are conservative, legalized Pot will be the single biggest catalyst for balancing the State’s budget in the next few years.
The only question is…why did it take so long?