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Tag: mom and pop business

  • Will The Administration Unleash An Economic Upswing With Cannabis

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    Will the administration unleash an economic upswing With cannabis and unlock jobs, investment, tax revenue nationwide?

    Rescheduling cannabis under federal law would mark one of the most consequential economic policy shifts in decades, unlocking growth across industries while reshaping how the United States approaches regulation, investment, and small business development. By moving cannabis out of Schedule I, the federal government would remove long-standing barriers constraining legitimate commerce, innovation, and job creation, allowing a multibillion-dollar industry to more fully integrate into the US economy.

    RELATED: What The Polymarket Says About Cannabis Rescheduling And More

    One of the most immediate economic impacts of rescheduling would be access to traditional financial systems. Cannabis businesses have long operated in a cash-heavy environment due to banking restrictions, increasing costs and security risks. Rescheduling would encourage broader participation from banks, credit unions, insurers, and payment processors, lowering operational friction and improving transparency. This shift alone would reduce compliance costs and allow capital to flow more efficiently into expansion, infrastructure, and workforce development.

    Tax policy would also change dramatically. Currently, cannabis operators are subject to punitive federal tax treatment under IRS Section 280E, which disallows standard business deductions. Rescheduling would eliminate this burden, freeing up capital for reinvestment. Those savings would ripple outward, supporting higher wages, more hiring, improved benefits, and greater purchasing from local suppliers. State and local governments would also benefit from stronger, more stable tax revenues tied to compliant and profitable operators.

    The labor impact would be substantial. The legal cannabis industry already supports hundreds of thousands of jobs, from cultivation and manufacturing to retail, logistics, marketing, and compliance. Rescheduling would accelerate job creation, particularly in states who have been cautious due to federal uncertainty. Ancillary industries such as construction, real estate, software, security, legal services, and advertising would see increased demand, further amplifying employment gains.

    Notably, rescheduling would also buoy the alcohol industry, which has made significant early investments in cannabis. Major beer, wine, and spirits companies have quietly positioned themselves through minority stakes, research partnerships, and beverage-focused cannabis products. As regulatory clarity improves, these investments stand to gain value. Alcohol companies bring decades of experience in branding, distribution, compliance, and consumer marketing, skills translating effectively to cannabis. Rather than cannibalizing alcohol entirely, rescheduling may encourage hybrid portfolios and cross-category innovation, helping alcohol producers adapt to shifting consumer preferences while maintaining relevance and growth.

    RELATED: Davos’ Evolving Take On Cannabis

    Perhaps the most meaningful impact, however, would be felt at the community level through the expansion of thousands of mom-and-pop cannabis businesses. Small, locally owned dispensaries, cultivators, manufacturers, and service providers anchor economic activity in neighborhoods often overlooked by traditional investment. These businesses create local jobs, lease storefronts, purchase from nearby vendors, and contribute to municipal tax bases. In rural areas, cannabis cultivation has already revitalized farmland and provided new income streams for family-owned operations. Rescheduling would give these businesses greater stability, access to credit, and a clearer path to long-term sustainability.

    In economic terms, rescheduling cannabis is not merely a regulatory adjustment; it is a normalization of an industry already exists at scale. By aligning federal policy with economic reality, the US stands to unlock growth, modernize regulation, strengthen local communities, and reinforce American leadership in a global market that continues to expand.

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    Terry Hacienda

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  • Cannabis Is Another Industry Hit Hard By The Shutdown

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    Joining thousands of mom-and-pop businesses and American households, cannabis is another industry hit hard by the shutdown

    The ongoing federal government shutdown which began October 1, 2025 is reshaping spending behavior in several consumer categories — notably those tied to discretionary goods such as marijuana and alcohol. With paychecks delayed for hundreds of thousands of federal workers, and everyday Americans facing persistent inflation and rising costs, spending is beginning to come under strain. And with thousands of mom and pop businesses, cannabis is another industry hit hard by the shutdown like retail, grocery and dining.

    According to a survey by Ipsos in October 2025, a majority of people at every income level reported cutting back on at least one expense amid economic uncertainty, tariffs and the shutdown. Another data point from TransUnion shows that 52 % of consumers in Q2 2025 reduced discretionary spending — the highest share in months.

    RELATED: Making Your Cannabis Dollars Stretch During The Shutdown

    The shutdown’s direct ripple effect on consumer wallets is real. Roughly 700,000 federal employees are furloughed, and nearly as many working without pay — which means delayed incomes and fewer dollars available for non‑essentials. Even more broadly, the Council of Economic Advisers warns that a month‑long shutdown could reduce U.S. consumer spending by as much as $30 billion.

    For the cannabis industry (medical and recreational both), the implications are significant. While the sector continues to grow in many states, the shutdown is freezing key reform efforts — for example, regulation of hemp‑derived THC and federal policy remains in limbo. Concurrently, budget‑tight consumers are being more selective with how they deploy their discretionary dollars.

    Photo by Jeff Vinnick/Stringer/Getty Images

    While exact national figures for cannabis spending drops during the shutdown are not yet published, the confluence of reduced incomes + high living costs + regulatory uncertainty suggests a tightening belt is very much in play. Retailers and dispensaries in profit‑sensitive markets may feel the pinch first.

    It’s worth emphasising the income angle here. According to data from the Federal Reserve’s Economic Well‑Being of U.S. Households in 2024 report, 39 % of adults live in families with incomes of $100,000 or more. By contrast, the implication is that around 61 % of adults live in households with income under $100K. Those households are less buffered from shocks like a missed paycheck, rising utility bills, or price increases.

    RELATED: The Feds Foul Play Around Cannabis

    On inflation specifically, a note by RBC points out that Americans earning less than $100K have seen grocery prices rise 33 % since 2019, compared to 25 % for those earning more than $150K. In short: the under‑$100K cohort is both larger in number and under more cost‑pressure.

    Given this, it’s no surprise we see signs of belt‑tightening amongst this group. The KPMG Consumer Pulse Survey reports that “consumers expect to spend less across most categories this summer — except increases in groceries and automotive.” KPMG

    For cannabis vendors, this means a shifting consumer base: more value‑seeking, more conservative purchasing, more emphasis on cost‑efficiency (as the Fresh Toast article highlighted). Alcohol spending may also be more vulnerable. While long‑term data show alcohol consumption trending down in some segments, the immediate dynamic here is one of substitution or reduction: when paycheck‑uncertainty and rising rent/food bills dominate, spending on “extras” tends to drop.

    RELATED: Study Reveals Stance By Physicians And Public About Cannabis

    The shutdown exposes a deeper fault‑line: public policy and everyday economic reality are diverging. The Speaker of the U.S. House of Representatives, Mike Johnson, has adopted a hardline posture on several fronts — including opposition to major healthcare subsidies, blocking full funding of federal agencies and resisting broader cannabis reform efforts. In doing so he appears detached from both: the majority of Americans who earn under $100K and are scrambling to make ends meet, and the broader public’s shifting views on medical marijuana and hemp reform.

    While polls show majority support for medical cannabis access and broader reform, the GOP Congress remains stalled. That impasse matters because for the cannabis industry — which is still suffering under federal ambiguity — policy action isn’t just nice‑to‑have; it’s a lifeline. The leadership’s lack of responsiveness to that reality sends a signal beyond the Hill: it tells everyday consumers, and businesses, that their pressures may not be fully appreciated by those in power.

    If the shutdown persists, we can expect:

    • Further reductions in discretionary spending among households under $100K as paychecks and benefit flows remain uncertain
    • Slower growth for cannabis retailers in mature markets, a greater emphasis on value plays and lower‑price substitution
    • Elevated risks for the industry as regulatory and policy advances are paused, making cost control and margin optimization more urgent
    • A heightened political risk for leadership whose policy stance appears misaligned with the economic burdens faced by a majority of Americans

    The shutdown isn’t just a headline about federal funding. It is a real‑world brake on consumer spending, a warning sign for lifestyle markets like cannabis and alcohol, and a reminder policy‑making ignoring everyday economic pressures runs the risk of being out of touch.

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    Terry Hacienda

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