Sep 28, 2015 08:20 AM EDT

Marijuana Legalization: What Are Possible Consequences In Society & Business Industry?

By Alex Cruz

Marijuana legalization, if it pushes through, can potentially bring big money, according to Justin Breidenbach, an associate professor of accounting at Ohio Wesleyan University. Cannabis entrepreneurs, however, might go through a lot of challenges to be able to get there.

The professor, who had been studying the economics of the weed for two years, said that this business — if marijuana legalization is to happen — has taxes, banking, liability, supply and demand to consider.

"Many believe this is a new-age gold rush," Breidenbach said. "While some companies are doing well, there are just as many that are struggling to keep their doors open."

In Boulder City, Councilman Macon Cowles said that most people in the industry felt like it wasn't working that well, Daily Camera Boulder News reported.

In Washington, there are some marijuana businesses that are losing money because of federal tax-code provisions prohibiting tax deductions for expenses related to illegal products, The Columbus Dispatch learned.

"If Ohio is to legalize marijuana, it is important for people to understand how this industry will operate and navigate the many hurdles to stay afloat," the professor continued.

Breidenbach added that he was neither in favor nor fighting against the industry. He is merely studying the business consequences.

The same site noted a report, released this year, by a task force established by Hamilton County Prosecutor Joseph T. Deters, who supports Issue 3, wherein it will legalize the purchase of marijuana for medical purposes and recreational use of those individuals over 21 years old.

It stated that, after three years, growers of marijuana would be able to sell the product to worth $1.1 billion. Furthermore, 35,000 new jobs are projected to be created related to growing the weed, and the cannabis industry will be able to generate an estimated $554 million in tax revenue for the local government.

Meanwhile, states that have legalized marijuana reportedly had a rise of crime by three to five percent because of the weed's high price, Mansfield News Journal reported.

Most users can't afford it, and the need to get their hands on the weed — for whatever purpose it may be — pushes them to turn to robberies and breaking-in homes. Some of the victims were reportedly left injured, others dead, hence, the objection of some people for marijuana legalization in Ohio.

What about you, guys? What's your stand on marijuana legalization?

Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics