“There is a great future in plastics. Think about it,” Dustin Hoffman’s character is famously advised in the classic 1967 movie “The Graduate.” A half-century later Hoffman’s character would likely be advised that the next “great future” is in cannabis.
Why?
More and more states are permitting increased use of marijuana – both medicinal and adult use. Since federal laws prevent transport of marijuana products across state lines, state-level control of cannabis naturally creates a highly localized industry. Almost all spending on marijuana flows to workers and businesses within the state. As a result, the marijuana industry generates more local output and employment per dollar spent than almost any other sector.
For instance, one study found that only government program spending generates more employment and output per dollar spent than the cannabis industry in Colorado. That’s a telling statistic as New Jersey begins to expand its market.
In a significant step forward, next month New Jersey will double the number of medical marijuana dispensaries from six to 12. Demand for these six new licenses was substantial -- with more than 140 applicants. Even more, it seems likely that soon New Jersey will be following other states and permitting some use of adult use marijuana as well.