This is the formula Canada is using to figure out how legal weed will boost its economy

The pot economy is way bigger than we think.

Weed makes money—not just for dealers or pharmacists or college students with a hobby, but for the overall economy. In Colorado, legal sales of marijuana reached nearly $1 billion in 2015. In California, the industry is projected to make $7 billion a year. In Canada, one of the largest producers of medical marijuana is trying to go public, after reporting $14.1 million in annual sales.

Economists, statisticians, and consultants have tried to...

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