Why Biden should legalize it, according to political science

POLITICS
💡What’s the big deal?

On the heels of Ohio’s landslide win for cannabis, some political scientists much smarter than I am are saying what’s becoming obvious: President Biden should pivot to legalization.

Here’s Bloomberg opinion columnist Jonathan Bernstein, on how the Biden/Harris campaign could adopt a similar strategy that Obama/Biden did with same-sex marriage:

For a long time, it made sense for Biden to lag behind public opinion on this issue, even if it promised short-term positive publicity. Presidents polarize. Had Biden run on legalization in 2020, or moved strongly toward it early in his presidency, he would have risked hardening opposition among Republicans. It also would have hurt the prospects for change and canceled out any public opinion advantages. It made more sense for him to oppose legalization as a candidate in 2020, and have taken only modest steps in that direction as president.

The numbers, as I wrote last week, don’t lie, per Gallup:

• 70% of Americans support legalization, including 87% of Democrats.

• 55% of Republicans support legalization.

• Including Ohio, 24 states and more than half the US population live in states where cannabis is legal.

Yes, but: Clearly, there are bigger things going on in the world than cannabis legalization.

It’s about the fifth or sixth thing down most politician’s daily priority list, even those who publicly support it.

But, according to Bernstein, Biden can use his bully pulpit to force the uncomfortable conversation among many Republicans, who don’t support legalization, even though their voters do.

That’s the type of issue that can help win close elections on the margins.

QUICK HITS
💡TL:DR

• The injunction on opening up new pot shops in New York is set to be lifted, MJBizDaily reports.

• The market for hemp-derived cannabinoids is larger than all state-legal cannabis markets and rivals the craft beer industry in the US, according to a new report from Whitney Economics.

• Sixty-one percent of institutional investors surveyed by the investment bank ATB say rescheduling cannabis from Schedule I to Schedule III is the top factor for moving money into US cannabis companies.

🧪 Science & Research

The yearly National Survey on Drug Use and Health Data (NSDUH) was released on Monday.

The study looks at broad, self-reported survey data about drug use and mental health in the US.

What are the key findings?

• 61.9 million or 22% of Americans used cannabis in the past year.

• Americans prefer smoking cannabis to other consumption methods: 78% indicated they smoke, followed by 47% who prefer eating or drinking their cannabis.²

• Vaping was third, at 37%.

• About 1 in 5 people between the age of 12 and 20 vaped cannabis last year.

• Overall, teen use remained relatively steady: 6.4 of 12-17 year olds used cannabis in the past month, compared to 6.1% the year prior.

More research: A new study published in the journal Preventive Medicine Reports found that compared to states where recreational cannabis was illegal, legalizing cannabis for recreational use was associated with nearly a 50% decrease in the adjusted odds of cannabis use disorder.

MARKETS
📈 📉 Moves

It’s cannabis earnings season for the third quarter.

Here are some highlights from the big names:

• Green Thumb Industries reports $10.8 million in net income on $275 million revenue.

• Curaleaf reports a $92 million net loss on $332 million revenue.

• Cresco Labs reports a $113 million net loss on $191 million revenue.

• Ayr Wellness reports a $19.2 million net loss on $114 million revenue.

READS
📚 What I’m reading

• New York’s cannabis regulators know out-of-state brands are breaking the rules – but agency won’t enforce until 2024 (NY Cannabis Insider)

• Stanford grads created a hangover-free alternative to beer: In just 4 years, they’re on track for $36 million in annual sales (CNBC)

• Progress not happening fast enough for marijuana social equity entrepreneurs (MJBizDaily)

• The cannabis that people are using for anxiety is probably making it worse (Wall Street Journal)

• Triad weed: How Chinese marijuana grows took over rural Maine (Maine Wire)