New York: Legalizing cannabis would bring in $2.6 billion

While New York State to legalize cannabis by April, a study published today quantifies the economic potential of such a measure. And the result is... staggering. With a statewide population of 19 million, legalization would bring in $566 million in the first year. And by 2027, in just six years' time, revenues would rise to 2.6 billion greenbacks.

The calculations, by economist James Parrott - Director of the Business Center at the prestigious private New School University - and consultant Michele Mattingly, are enough to make New York State Governor Andrew Cuomo envious.

Economic capital of the world's leading power, tourist hub with 16 million visitors, showcase of the soft power In the U.S., the «Big Apple» would enjoy numerous economic benefits if it legalized cannabis, the study shows. Especially since covid-19 has devastated New York, killing 44,000 people statewide. And the economic consequences are just as severe.

25 billion in losses

The city and the state are near-bankrupt. According to the newspaper Le Monde, they accuse «$14.5 billion (€12.3 billion) in losses over two years for The State (on an annual budget of $177 billion) and $9 billion for Big Apple (on an annual budget of $89 billion).».

Cannabis would then fill the coffers. According to the report's calculations, taxes from flower sales would bring in $159 million in the first year, rising to $765 million by 2027. As for state taxes - which go to the governor - revenues would rise from $25 million to $114 million.

With national unemployment at over 8 %, legalization would also create jobs. James Parrott and Michele Mattingly forecast 50,800 new jobs. And these employees will share a $2.2 billion salary pie. Enough to breathe new life into covid-19-tested New Yorkers.

«Because of the economy damaged by covid-19, and consequences among communities of color and black-owned businesses, the economic and employment impact of legalizing recreational cannabis will be significant».», note the authors.

In 2018 and 2019, New York had also proposed legalizing cannabis. But, each time, the project remained a dead letter. This was due to disagreements over the distribution of taxes. This time, with the social and economic crisis, those close to Governor Andrew Cuomo promise that this is the year.