The GDP report released this week showed a massive drop of over 30%, the worst ever, and has put the breaks on many industries. Hospitality, the airlines and entertainment were blasted as the entire company's output declined. The legal cannabis industry is in trouble after a rough 2019 and 2020, much needs to happen to reinvigorate the industry and many opportunities remain.
The cannabis industry suffered in 2019, despite the continuing efforts of states and countries to legalize it. California saw growth in their cannabis sector as Illinois legalized cannabis for adult consumption. Many hung their hats on the notion that 2020 would be a banner year for thr industry as Mayor Cuomo pledged to legalize cannabis and Mexico looked red to begin their arduous process. COVID-19 put a damper on these dreams.
As the $600 unemployment bonus fades and people lose their jobs, face evictions and whole industries teeter, the cannabis industry faces even more trouble. Aside from this, as world markets look to be ready to slump, publicly traded cannabis companies may need to lay off workers, close locations and focus on their core operations which takes funds from RnD. This looks bad.
Many opportunities remain. The MORE and SAFE acts are on deck, though 2020 is likely not going to see them pass the Conservative Republican Senate. Since cannabis was dubbed essential and medical dispensaries in 33 states operate, there are opportunities for good. Some states are suing companies that produce dangerous and addictive opiates, and cannabis may be more used to manage pain.
The bigger picture favors the legal industry going forward. If elected, Biden will focus on decriminalization, which is needed, and a broken economy will need jobs. Money will flow into the sector as companies go bankrupt and are eager to transfer assets. There is always Chapter 11 bankruptcy, and as the sector grows, more will use cannabis. Our aging population can be helped with their pain by natural medicine, so even demographics plays a role, as Baby Boomers enter the scene.
Keep the faith in this growing legal sector. As SHTF, take a long view and keep on keeping on.
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