The U.S. hasn’t had a recession since the 2009 market crash but it seems we are headed for one now. Bank of America has even said we are already in one.
We have never experienced something like the coronavirus and it has rocked the country in many ways.
Many items are considered recession proof, such as toilet paper and food and beverages like milk and bread, but some are saying that even marijuana is recession proof.
Industry experts have revealed that the plant is a recession proof essential says an MJBizDaily report.
According to former Sacramento, California, cannabis regulator Joe Devlin, now senior vice president with Ikänik Farms, the marijuana industry is “relatively recession-proof” because the drug has fallen into the same category as spirits and tobacco. He has said it’s a relaxation vehicle and reward that consumers give themselves.
“A lot of these sin businesses – like alcohol, tobacco and cannabis – they hold up better in periods of recession than other traditional businesses,” remarked Beau Whitney, an Oregon-based economist who has worked for multiple cannabis firms, including New Frontier Data in Washington DC.
“Consumers budget for cannabis. And they will budget and spend consistently, even when they pare back payments on other things, like that latte or going to the movies,” Whitney said.
“What does alcohol and tobacco do during a recession? It skyrockets, because people are stressed out,” commented Sara Gullickson, CEO of Arizona-based CannaBoss Advisers.
Andrew DeAngelo, the co-founder of Oakland, California-based Harborside said, “Whenever there’s a recession, whenever there’s a war, whenever there’s a natural disaster, people need and want more cannabis, not less cannabis.”
“Harborside did not see any noticeable effects from the last Great Recession,” DeAngelo said. “For a certain percentage of the population, weed is just as important as food and toilet paper.”