The legal cannabis market will fail unless cannabis sells for $1 a gram or less, say some experts.
Chad Chaderson, a self-described cannabis aficionado and advocate, says legalization will be an abject failure because the government-mandated price of $10 a gram will be too high, allowing the black market to thrive.
“We’ve already heard that the government is setting the price at $10 a gram plus taxes,” Chaderson tells verp. “And we’ve already seen how the hundreds of dispensaries that have been selling at those prices or higher have all had to close due to a lack of demand. Now the government says they can shut down the black market on day one by charging ten times what the black market charges. It’s a joke!
“If they want to compete with the black market, legal cannabis will have to be $1 a gram or less. Maybe even free!”
Chaderson also points to the US legal markets, where the black market has continued to thrive and legal stores have been forced to give their product away for free to stay in business.
“Look at Colorado, California, Oregon, and Washington,” continues the advocate. “In Colorado, dispensaries sell for about $5 a gram and are barely staying in business. California is the same. Cannabis consumers simply won’t pay more than that for pot, and we’re already seeing the black market double and triple in those states.
“The same is true with dispensaries in Canada. They’ve all gone out of business because they can’t compete with the black market.”
Chadderson finds an unlikely ally in Don Pines, a policy analyst at Jackson Jackson and Jackson, a think-tank based in Calgary, who says the Trudeau government expects legalization to work perfectly from the very start, but they are mistaken.
“Justin Trudeau and his Liberal insiders may think all the hard work is done and that the black market will dry up on July 1st when pot is made legal,” Pines told verp, “but they’re going to look like idiots on July 2nd when crime still exists.”
Pines says there are a whole host of reasons why legalization will fail, including: an expected supply shortage, a lack of products currently available on the black market, charging money for products, a lack of man-buns and ironic reading glasses displayed by employees at retail outlets, and packaging regulations.
“This Liberal government is in for a rude awakening. They have told Canadians that legalizing will end the dangerous black market marijuana industry, but unless these stores give cannabis away for free, the black market will continue to be more appealing to consumers. And if that happens, it proves legalization doesn’t work and we should just give up and go back to prohibition.”
* We used to charge $20/gram for satire, but the market wouldn’t sustain it.