When New Yorkers buy California weed, they should hear a deafening “whoosh”. They’re not high, that’s the sound of millions of dollars leaving the New York economy and going to California.
Experts agree: Money being spent locally circulates money within the community, which means more jobs, better salaries, and building the local tax base. Money spent locally means wages and benefits are paid to local residents, profits are earned by local owners, purchases each business makes of local goods can be used internally or for resale, and contributions are given to nearby organizations rather than corporations based in other places. Non-locally owned businesses do not have the same economic impact for a community, as they don’t help disperse wages, donations, taxes that fund city services, and typically don’t support or purchase from other small businesses in the area or transport their goods from local businesses.
Here are 9 critical reason NOT to buy California weed:
- Licensed Cannabis Suppliers are Hubs of Economic Activity: Think of the New York cannabis farmers who didn’t get paid for that weed. Now think of all the people that depend on those New York growers to buy their fertilizer, supplies, equipment, repairs on that equipment. Think of those who harvest New York weed and trim and cure it, preparing it for sale. Even providers of local food, gas, utilities… all of those suppliers are going to suffer. Let’s also think of the Processors and Manufacturers of New York cannabis products. Their employees, their suppliers, their service providers, packaging suppliers, marketers and designers, providers of basic supplies and services… all suffer.
- When you buy New York cannabis products, 68% of the money stays in the local economy. Buy from a large multi-state operator (MSO), and the percentage drops to 43%.” Let’s say you buy your weed from a New York company. “Each dollar you spend … is cycled back into the [local] economy. They utilize local services, supplies, and employees. Your money is used to pay their employee’s salary, which will also eventually be used locally. It pays local taxes to fund schools, fire fighters, etc. They will buy their supplies most likely from other local businesses which will then also be used with other local businesses and so on and so forth.”
- Multiplier Effects of Local Spending: When economists talk about the economic benefits of shopping for local food – even if there’s cheaper food from out of state- those same rules apply to buying New York cannabis. “Those who focus solely on the cost of local food ignore a major benefit of local food economies: the multiplier effect. This term refers to the economic phenomenon of initial spending (by the government or individuals) leading to increased consumer spending in a community, resulting in greater income for that community. Studies show that the multiplier effect of a locally owned business is two or three times higher than that of a non-local business.” Here’s a concrete example of the multiplier effect: “Economist Michael Shuman determined that shifting just 20 percent of food spending in the city of Detroit would result in a boost of nearly half a billion dollars, including more than 4,700 new jobs and an additional $20 million in business taxes to the city each year.” The multiplier effect also holds true for New York cannabis.
- New York Spending means New York jobs. Local jobs mean induced spending as those workers spend their wages. Reducing demand for New York products will reduce their wages, impacting their families and their ability to spend those wages locally, as well. Even income taxes are reduced when you buy California weed, which go to pay for police and firefighters and teachers.
- Environmental benefits of buying New York weed: Pretty simple: because local weed doesn’t have far to travel, buying New York weed can drastically reduce your carbon footprint.
- Indirect Spending: When you buy Cali weed the business to business purchases in the supply chain that SHOULD have been taking place do not, That spending goes straight to Cali.
- Induced Spending: that money that SHOULD have been spent by your New York workers is now being spent by Cali workers.
- Local Jobs: “By choosing to buy locally, employment tends to be considerably more stable for small businesses, creating more opportunities for local residents to work. With small businesses employing 47% of US employees, shopping at one business that relies on surrounding businesses causes a demand for hiring in various local industries. Small businesses tend to retain their employees longer, due to more solid relationships within the community and cultivating a sense of city pride. Rapport between local businesses and consumers creates a better experience on both sides of the table, as both sides are valued as individuals, rather than just a statistic.”
- Local innovation: New York may be the only place in the world where you can buy sugar-free kosher vegan gummies with all organic ingredients and fast-acting hash resin. California, where cannabis has been legal for over 25 years, still hasn’t innovated this well.
A few things to think about when you’re in a New York cannabis dispensary, pondering your choices. Jenny’s says, “Choose New York.”