The United States of America has a deep and rich history of using cannabis for the manufacturing of goods and medicine. It can be dated back to the 1600’s when early settlers brought cannabis to North America to be used as hemp. Hemp was even used in the 1600-1700’s as currency and to pay taxes. I wouldn’t say that cannabis was used exclusively for hemp, but by in large hemp was used for its fibers to make a variety of products.
One of the reasons hemp was, and I can argue still is, so valuable is its accessibility for average farmers to grow and the durability of the fibers itself. The US Navy back in 1797 used hemp for their ships sails, ropes, and a variety of other ship fixtures. And here in lies, the real reason hemp was used and promoted so heavy during the founding of the United States, it was a matter of national security. The United States outfitted its Naval capacity with hemp. Even the founding fathers believed hemp was a matter of National Security; including George Washington and Thomas Jefferson who was recorded writing,”Hemp is of first necessity to the wealth and prosperity of the nation.” Plain and simple hemp was used as an early tool and commodity to get the United States economically independent, but also militarily.
Along the way, the United States went in another direction and restricted the access and distribution to not only hemp, but marijuana.
Fast forward hundreds of years into the future to today’s current day and age. Marijuana and hemp by and large has made a comeback of all comebacks. Largely due to the activists and people who refused to obey a ban on a plant that once was considered a matter of national security.
Today, marijuana is a sector in the United States that is outperforming not only other sectors, but its own historical revenue. Marijuana is not legal in all 50 states, but hemp is. Yet, where marijuana is legal those businesses and consumers are experiencing a boom. Businesses are experiencing more cash revenue and consumers are experiencing the benefits from more cash in the cannabis industry in the form of R&D. Marijuana businesses are beginning to become flushed with cash and that means more money for new products; packaging, machines, and of course man power.
However, with all this growth also comes thirsty eyes in the form of regulations and taxes. Government local, state, and federal are also benefiting from the success of the marijuana industry. With the forced economic shutdown, businesses have shut their doors permanently and that means less tax revenue for government as a whole. Yet, the marijuana industry has been allowed to stay open as a whole and benefit from the increased unemployment and the economic stimulus check. This, as well as, the rule that drugs and alcohol do well during an economic downturn, has lead to increased tax revenue from the marijuana industry.
If I can speculate for a second, if the economy breaks down any further I foresee taxes for cannabis to increase to fill in the gaps where other sectors are failing. I suspect hemp will also see the same rise as marijuana in the area’s of CBD, CBG, and a variety of other cannabinoids. I also see industrial hemp making a comeback as societies look for cheap alternatives to make local goods from easily sourced material, which would be hemp.
-Red Eyed Widow