One Year Later, Canada's Black Market For Cannabis Still Won't Die Quickly

One year after Canada's cannabis legalization went into effect on October 17, 2018, the black market still seems to be alive and well.  This is despite rather modest taxation of legal weed, and the fact that the age limit is 18 or 19 depending on the province, as opposed to 21 in the US states that have full legalization.  So what gives?

Apparently, there are chronic shortages of the herb throughout Canada that persist to this day, with the legal stores often selling out too quickly, and the black market dealers seem to have no difficulty filling the gap, and cheaper.  Why is this happening?  Well, it is clearly not due to any real scarcity, but the artificial scarcity of overregulation.  Most provinces only allow it at government-run stores which are few and far between, while the few privately-run ones are also few and far between due to a limited number of licenses.  The rollout of legal weed has been painfully and deliberately slow so as not to offend the public-health crowd too much, and they did not even sell edibles, beverages, or hashish yet (until this month, October 2019, a whole year after phase-one of legalization began).  So it doesn't take a rocket scientist to see how this would create shortages for illicit dealers to fill, as per the basic iron laws of supply and demand.

Thus, Canada's black market is due to somewhat different reasons (i.e. excessive federal and provincial overregulation causing chronic shortages) than the USA's black market (excessively high age limits and taxes, and a state-by-state patchwork quilt approach in the absence of federal legalization).  Either way, lessons should be learned from both countries.

Best thing for Canada to do?  Accelerate phase-two of legalization yesterday, as it is long overdue.  Consider a tax holiday for a few months, like Oregon did when legalization began there.  Ease up a bit on licensing regulations (and fees) for both producers and retailers.  Allow at least all liquor stores to sell weed alongside their booze, and further consider allowing any store that sells cigarettes to also sell weed as well.  And those provinces that set the age limit at 19 (including Manitoba, despite their drinking and tobacco smoking age being 18) should lower their age limits to 18.  Encourage current black market dealers to "go legit".  And once these things are done, then crack down on the black market.  Problem solved.

Of course, once the black market is dead and gone, then by all means, tax away.  But now is not the time for overtaxation or overregulation.

Remember, there is really no good reason why cannabis needs to be regulated any more stringently than alcohol or tobacco.  After all, while it is not completely harmless for everyone, the fact remains that by just about any objective, rational, scientific measure, cannabis is safer than alcohol, tobacco, most prescription drugs, aspirin, and even Tylenol, while it is less addictive than coffee.   Thus our laws and regulations need to align accurately with reality, since facts > feelings, even in a "post-truth" society.

On the plus side, after a year of legalization the fears of increased carnage on the highways from stoned drivers and stuff like that apparently did not materialize in Canada.  Or any other dire problem for that matter.  But we could have told you that long ago.

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