We have written a blog post about the things you can expect once cannabis is legalized in your state or in your country.
To summarize, first, you can expect initial cannabis prices to be outrageously high, thanks to the law of supply and demand. These prices will fall in time and will eventually find their natural level. You can also expect to experience cannabis shortages at first, as well as having only a few dispensaries to cater to consumers. Moreover, you can expect the black market to continue to exist despite there being a brand-new legal market. You should also not be surprised if your town or municipality decides to opt out of the legal cannabis market.
Well, guess what? That’s not all. There are more things that you can expect with initial legalization. These include:
Taxes from cannabis sales will not balance the budget.
People who are counting on cannabis sales taxes to help balance the state or provincial budget are going to be disappointed. Because cannabis taxes cannot close budget shortfalls.
One of the leading arguments supporting cannabis legalization is that it will generate millions of tax revenues. While cannabis does give states additional revenue streams, it won’t be able to meet initial projections due to certain factors, which include the unregulated market still existing and prices that still take time to find the right balance.
Many people will be excluded.
Many people, particularly the victims of the war on drugs, will be shut out from the new legal cannabis system. The new licensing system and the need for a significant start-up capital will make it difficult for the minorities and for those who have been discriminated against to step into the business.
This is the reason why it is important to include assistance programs for the victims of drug-related discrimination in the cannabis framework from the very start.
Some cannabis products will fail testing.
A state or country that has legalized cannabis will form a body that will be responsible for testing cannabis products before they are put on the shelves. Since the government is now regulating the sales of these products, they are also responsible for ensuring that consumers get weed that is safe and free of contaminants. So, if the legal market has one edge over the black market, it is that legal cannabis has gone through lab testing and quality control. And this is also exactly one of the reasons why most people would rather spend more money on legal weed than get cheaper ones from the streets.
Quality control means that there will be products that are going to fail the tests. Initially, at least. Perhaps because of sellers still trying to see if they can get away with selling weed that has not gone through stringent laboratory testing. Eventually, however, these sellers will be penalized and will learn their lesson.