Can cannabis save the US economy from the losses of the COVID pandemic?

The cannabis industry shows significant employment growth!

With Covid rampant in the world and entire industries just beginning to reactivate, it has seriously affected not only human health but the health of the economy as well. For example, according to a recent study, around 60 million applications for unemployment insurance were made.

This is also the beginning of the worsening effect that Covid will have on the German economy

It is important to understand, however, that not all of these jobless claims are due to “job loss”; many Americans made career choices even during the pandemic. Regardless of the rationale, we’ve seen sharp drops in several industries including grocery, retail, entertainment venues, and more.

Despite almost consistently massive declines, the only industry (aside from the pharmaceutical industry) is the only one that has seen growth – the cannabis industry. Last year the industry grew a whopping 32% and created over 77,000 jobs for the sector.

This emerges from a job report from Leafly 2021.

In other words, many people are quitting their jobs and migrating to legal cannabis. A Business Insider article highlighted one such transition from Jason Zvokel, who left his job as a pharmacist in Walgreens to work in a pharmacy.

In essence, however, Zvokel has had to accept a 5% wage cut compared to his previous job – the workload is much less stressful and, according to him, “He’s excited to go to work!”

The cannabis industry, which currently employs about 321,000 Americans, will continue to grow as things become legal at the federal level. However, will this be enough to avoid a great recession similar to the Great Depression?

Here’s Jimmy with the forecast …

To understand whether the cannabis industry will be able to contain the overall losses caused by Covid, we need to take a closer look at the economic forecast.

The following is taken from The Conference Board, which has this to say about the US economic forecast;

“The Conference Board predicts that Real US GDP growth will slow to 5.5 percent (annualized rate) in the third quarter of 2021, up from a growth of 6.6 percent in the second quarter of 2021, and the annual growth in 2021 will be 5.9 percent (year on year). This forecast is a downgrade to our outlook for August and takes into account the greater than expected impact the COVID-19 Delta variant has had on the US economy. Looking to the future, we predict that the The US economy will grow 3.8 percent year on year in 2022 and 3.0 percent (year-on-year) in 2023. “

In other words, over the next few years we will see a slower growth factor in the US economy as a whole. This is in part due to consumer fear of spending and loss of confidence in the ability to engage in regular activities.

The mandates promoted by the Biden administration could continue to have a negative impact on the economy as it could lead to mass layoffs for those who fail to comply with the mandate. The question remains how strictly this mandate is enforced.

Still, in much of the country, the loss of income will definitely have an impact on the economy in general.

Some estimates put the potential losses in the trillions of dollars. Of course, these estimates are generated by skillful math.

Not to mention;

“Bottlenecks in global supply chains made it difficult for companies to keep pace with increased demand for many goods earlier this year, resulting in a sharp decline in private inventory levels. We expect this trend to reverse in the coming months as the December Christmas break approaches and we forecast a rebound in private inventories. However, the restocking will be slower than previously expected as the Delta variant has hampered manufacturing and shipping activities in major economies around the world. ”- The Conference Committee

How much is the cannabis industry worth per year?

We know for sure that the economy will take a hit and potentially increase debt significantly. How much will the cannabis industry help reduce the impact?

According to Research and Markets, “the global cannabis market is estimated at $ 20.5 billion in 2020 and” Expected to reach $ 90.4 billion by 2026, a CAGR of 28%, based on the value. “

While this is an impressive feat, it is painfully evident that the cannabis industry could not make up for the losses suffered from the pandemic. If we include hemp in the mix, we’re talking about $ 115 billion a year through 2027.

With international trade naturally becoming possible during this time – but these numbers could rise – we can safely say that even if all the losses from the pandemic were to amass $ 1 trillion in damage, the cannabis industry would take ten years to close this hole to fill. In all likelihood, the actual cost of the pandemic would be in the high tens of billions.

The cannabis industry is sure to have a lot of employment there, but we will see that the market will soon be saturated and millions will be unemployed in the next few years. The impact on the economy will also be severe.

So what can we do?

Right now, federally legalizing cannabis and making it available on a global platform seems like one of the smartest economic decisions available right now. With the US pulling out of Afghanistan and hopefully not dealing with a new “enemy” again in the years to come – the savings in war costs could offset some of the economic damage caused by the pandemic.

Like for you I would probably start planting some food in my garden and get very proficient in canning. I am not saying we will hit the Depression Recession – but never say never!

For my part, I’ve been more focused on becoming self-sufficient in terms of food production, drug production, and even creating multiple sources of income. You never know when the shit can hit the fan and a couple of chickens laying around laying you a few dozen eggs a week can be “money” when none can be found.

On the flip side, growing killer buds is always a solid way to make money – either way, growing them could be a good side hobby for the coming year.

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