Marijuana is growing everywhere, and the business behind the drug is growing even faster.
In its annual report on the U.S cannabis industry, Marijuana Business Daily predicted up to $44 billion in economic impact from the marijuana industry by 2020. To put this number into context, it is roughly equivalent to the current market cap of the huge company we all know as Netflix.
This $44 Billion is not derived simply from the sales, but from the sales plus all of the money pumped into the economy as a direct result of sales. It is extending to everything down the chain that was touched by marijuana, including home purchases from new residents seeking places like Colorado out for marijuana purposes.
An economic multiplier of 4 was assigned to the marijuana economy, meaning that for every dollar spent on marijuana, another three dollars is working its way into the economy.
A huge drive of this overall cannabis growth comes from the recreational sales in Colorado, Washington and Oregon.
While future political change could affect this economic prediction, the magazine argues that there may be too much momentum in the industry at this point for one politician to slow it down.