Any person who follows my perform knows that one particular of my key pet peeves with legalization is that government officials, lawmakers and bureaucrats dictate pretty much each and every aspect of the provide chain. As we have observed time and time once again, this leads to shortages of legal cannabis for sale. Treating cannabis like a hazardous substance that wants to be regulated and restricted at each and every turn often leads to legal provide not meeting legal demand, which leads to higher costs and the continued market place dominance of illegal sellers.
Cannabis buyers in Michigan are understanding this lesson, and it appears they will have at least an additional year to make confident they find out the lesson nicely. Even though the Michigan Marijuana Regulatory Agency plans on starting recreational retail sales sometime in early 2020, the reality is that initial sales will come from the health-related marijuana side of the equation, and provide for Michigan MMJ is currently quick. And given that there have been zero recreational cultivators licensed but, the hopes of provide getting brought up to par anytime quickly are slim.
The outcome will be that illegal dealers in Michigan will have quite tiny competitors and will operate quite considerably as they often have, except now their consumers can legally possess what they sell. How extended it will be ahead of there is a decent provide of legal adult-use cannabis in Michigan is anyone’s guess, but the answer will most likely be counted in “years”.
The option to the provide challenge is as easy, but it not getting adopted by government officials is a certainty. Additional provide has to be permitted to be grown and sold. Reduced barriers for licenses, significantly less regulation, reduced taxes – these are all issues that will draw extra growers and sellers into the market place. Soon after all, government agencies make nothing at all but headaches and delays cannabis has to be grown and sold by actual men and women who have the incentives and the experience to get the job completed appropriate.
But none of these issues will come about, and inaction will be justified with claims that marijuana is hazardous and should be kept out of the hands of teens, kept from getting diverted to other states, and so on. In reality, the government is the worst organization imaginable to achieve cannabis legalization. Whether or not on a regional, state, or federal level, government officials have tiny business enterprise expertise, have tiny incentive to do issues appropriate and face handful of consequences if issues go incorrect.
The quantity of marijuana provide must be dictated by demand, and nothing at all else. In reality, if it is dictated by other considerations, there will be shortages.