4 Reasons We’ll Finally Legalize Cannabis in 2022
Cannabis is more popular in the U.S. than ever.
As I said last month, 68% of Americans now support cannabis reform.
Even most Texas Republicans now support it.
And it’s already fully legal in 18 states.
Whether or not you like it, cannabis reform is coming soon.
Here are four reasons why the U.S. will finally legalize cannabis in 2022…
Reason No. 1: Midterms Are Coming Up
As my colleague Steve Fernandez explained on Tuesday, there’s a ton of cash on the sidelines.
He notes that “the U.S. M2 money supply is now north of $21 trillion.”
That means investors are ready to pour money into cannabis stocks.
We already saw signs of that back in January.
When the Democrats took control of the Senate, cannabis stocks doubled in a little more than a month.
Cannabis Stocks Rallied 117% Earlier This Year
Of course, reform didn’t happen, and the cannabis rally fizzled out.
But midterms are coming up now, and lawmakers need to impress voters.
A major push for reform in 2022 will send cannabis stocks to new all-time highs.
That will boost the stock market as a whole, creating a win for the current leadership.
Reason No. 2: It’s a Great Time to Start Taxing Cannabis
The budget deficit soared during the pandemic.
The government is desperate for new sources of revenue.
So, it’s a great time to start taxing cannabis.
States with legal cannabis have made over $8 billion from it.
And other countries realize the benefits of reform.
- Canada charges a 10% tax on cannabis sales. It made $186 million in the first five months after legalizing it.
- Mexico aims to legalize cannabis by the end of the year. It predicts annual revenue could reach $1.7 billion.
- Germany plans to legalize cannabis soon. Its lawmakers expect taxes to bring in 1 billion euros annually.
So far, U.S. lawmakers have proposed taxes ranging from 3% to 25%.
These taxes would help fund schools, roads and other projects.
Reason No. 3: Staying Competitive in North America
Cannabis is booming in Canada.
Canada’s dried cannabis flower exports grew 400% in three years.
In the same time frame, its cannabis oil exports grew by 1,350%.
Canada’s biggest customers are Israel, Australia and Germany.
And Mexico is ready to export once it’s legal.
Mexican Senate Majority Leader Ricardo Monreal has been fighting for that outcome.
He said cannabis “could be beneficial for the economic reactivation of our country.”
If we don’t act soon, we’ll let Canada and Mexico dominate the cannabis industry.
Reason No. 4: A Solution to the Labor Shortage
I’ve read a bunch of articles lately about the labor shortage.
And the problem’s only getting worse.
Jobless claims just hit their lowest point since 1969.
Meanwhile, we arrest hundreds of thousands of Americans every year for smoking marijuana.
It’s more arrests than heroin, cocaine and crystal meth combined.
Sentences for marijuana users are often five years or longer.
And these people carry a criminal record for life.
Giving them a clean slate would provide a massive influx to the U.S. workforce.
That would help end the labor shortage and boost the economy.
In addition, many cities have had to cut their police budget during the pandemic.
And policing cannabis use is a huge drain on resources.
An ACLU report estimates that police spend over $3.6 billion a year trying to catch cannabis users.
And it costs around $32,000 a year to house an inmate in jail.
Our law enforcement could use these funds in other ways.
For example, it could hire more police officers and give them better equipment.
Get Ian King’s Favorite Stock Picks for 2022
Ian’s Strategic Fortunes subscribers got in on this trend early.
He told them about Trulieve Cannabis Corp. (OTC: TCNNF) back in November 2019.
The stock rallied nearly 400% afterward before cooling off in recent months.
TCNNF is now well above Ian’s buy-up-to price. But there will be other opportunities in the years ahead.
To get Ian’s favorite stock picks for 2022, make sure you check out his Strategic Fortunes service.
Assistant Managing Editor, Banyan Hill Publishing
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