Legalization of Marijuana and the Impact on Current Economics

Impact on Commerce

The legalization of Marijuana for recreation purposes has had a significant impact in the U.S economy. For instance, studies have pointed out that legal marijuana activities generated around $ 2.39 billion in Colorado in 2015 (Blake & Finlaw, 2014). Similarly, it created more than 17,000 fulltime jobs in that region, thus contributing positively to the economy mmm. Furthermore, recreation Marijuana is anticipated to generate about $150 million by 2020 (Blake & Finlaw, 2014).

Negative Impact on Economy

The legalization of recreational Marijuana have negatively affected the sales of alcohol in some states in America.  Research has shown that the performance of beer in Colorado has significantly dropped, particularly, for brands such as Coors Light and Bud Light dipped, just to mention (Evans, 2013).  Additionally, some scholars suggest that the beer industry could lose more than $2 billion in retail sales due to the legalization of Marijuana Room.

The Market Share for Businesses

The market share for businesses have greatly improved since the legalization of recreational Marijuana. Studies have shown that the total distribution of Colorado’s fees such as excise taxes and sales revenue increased dramatically between 2014 and 2016 (Blake & Finlaw, 2014). In other words, the distributional fees rose from $17.1 million to $105.8 million (Evans, 2013). Moreover, retail sales locations have created additional upward pressure for commercial real estate, construction, and other related services. For example in 2015, many office spaces were converted into Marijuana business incubators (Evans, 2013). In this regard, the legalization of marijuana has facilitated the growth of small business and retail companies to promote it supply and sales.




Blake, D., & Finlaw, J. (2014). Marijuana legalization in Colorado: Learned lessons. Harv. L. & Pol’y Rev., 8, 359.

Evans, D. (2013). The economic impacts of marijuana legalization.

Room, R. (2014). Legalizing a market for cannabis for pleasure: Colorado, Washington, Uruguay and beyond. Addiction, 109(3), 345-351.