Recreational marijuana is said to bring in millions of revenue for the state, but that does not mean every business will benefit from the new industry.
According to the state of New Mexico, the industry will bring in $50 million in state revenue.
State leaders say that it will be used for state programs such as housing, food insecurity, and economic development.
A local economics professor at New Mexico State University says that the private economy such as restaurants and movie theaters may not see a big boost.
“The reason for that is that marijuana is a recreational drug, people buy it for recreational purposes. That recreational usage means that they’re not engaging in some sort of other recreational activity,” said Erickson. “
“They buy marijuana instead of going to a movie, they get stoned instead of going to a bar and getting tipsy. The consequences that the spent in the economy is relatively unaffected.”
Governments benefit from the new industry, states with recreational cannabis gain a lot from taxes.
“There is a higher tax on marijuana than there is on movie tickets than there is on grocery tax and other goods. So that’s going to bring in more revenue,” he said.
He adds that economic activity is being diverted to pot stores.
Erickson says there is one exception to this, the sales of marijuana could bring tourism to cities closer to the Texas border.
A place like Anthony or Sunland Park may get more shoppers.
“People come into New Mexico from Texas or Oklahoma to buy marijuana. That’s a net benefit for the state that otherwise would not be there,” said Erickson.
According to Erickson, Las Cruces may not benefit from tourism because it’s further a drive.
He says that people typically will shop for marijuana at the first place they find, making Anthony or Sunland Park more accessible to those from El Paso.
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