As states legalize the growth and sale of cannabis around the United States, one thing is becoming clear: The industry has an equity problem.
To better understand cannabis equity, it is first necessary to understand what equity is. Then, you can see what it has to do with your favorite plant.
Understanding Equity
When you hear about social issues, sometimes the word “equity” comes up. For many people, they believe this is the same as “equality,” but sociology says that is not true. Whereas equality is about everyone receiving equal treatment, equity is more about the amount of fair opportunity. Because life situations can be so different, giving one person X number of resources to survive might not equate to the same number necessary for someone else to survive. That is, equity is more about the output whereas equality is more about the input.
How Equity Relates to Cannabis
In 2019, the cannabis industry brought in between $38 billion and $46 billon. While some of this money came from small businesses, a growing number of corporate investments are now taking over, thanks in large part to restrictive licensing laws that give preferential treatment to stakeholders with the most money.
Additionally, regulations are particularly racist. Because the implementation of the War on Drugs has led to between 1.5 and 9 times more cannabis arrests of Black and Brown Americans than whites for the same offenses, the industry excludes a disproportionately high number of people of color due to criminal records and limited resources. As a result, economic and racial inequity are rampant.
Attempts To Address Cannabis Equity
As the weed industry grows, so does public awareness of this underlying program. Over recent years, an increasing number of states have started including social equity programs in their cannabis laws. Both the approaches and results have had differences.
In California, for example, there is a statewide program to assist municipalities with providing loans, grants, and other startup assistance to underrepresented entrepreneurs. At the same time, cities like Los Angeles and San Francisco have even stronger programs in place that target those specific areas. In Massachusetts, there is a similar statewide program in place, but the implementation and outcomes for the two states have been very different. Whereas equity programs have shown promise in California, the implementation in Massachusetts has led to disappointing results so far, with minorities owning less than 2% of the state’s weed businesses.
Challenges Ahead
As cannabis legalization spreads across the U.S., more and more states are facing the challenges of rolling out an industry that addresses ongoing equity concerns. Going forward, states that are new to the industry should look to states that have had the most successful equity program implementations for best practices. Additionally, lawmakers can look at less-successful programs as examples to learn from. By weeding out what works and what does not, leaders can choose a path with the greatest likelihood for bridging gaps.
The world of weed is new and exciting for many people, but it is also unfair to many others. In order to truly address the harms of cannabis prohibition, it is necessary to understand and respond to the remaining inequities that exist.
