Published: 12/24/2019 12:01:30 AM
The Canadian government legalized the recreational use of cannabis on Oct. 17, 2018. However, the warehouses in Canada are piled with almost 400 tons of unsold marijuana after cannabis producers overestimated the demand. The black market gets involved in the marijuana market, which makes its price fall drastically.
The legalization of cannabis was a wrong decision made by the Canadian government. The intention of state-run marijuana is to make profit from this lucrative market. Therefore the price of state-run marijuana is very high: $7.82 for one gram, while the black market price is only $4.27 per gram.
According to a research from Scotiabank, Canada’s black market controlled 71% of marijuana sales in 2019. The cost for cultivating cannabis is very low, therefore it is easy for individuals to illegally cultivate it in their home or backyard. As a result, not only is individual marijuana cultivation out of control but so is state-run cultivation.
The Canadian government then decided to drop the marijuana price to compete. The consequences of this action will be that the drug dealers drop their prices as well to compete with the state. The drug consumer base will then significantly increase due to the low price and easy accessibility of marijuana. Overall, cannabis legalization is a mistake.
YIXIAO SUN
Tilton