The Liberals are quite adamant that the goal of legalization is to “stamp out the black market.” What they mean by “stamp out” is anybody’s guess, but it doesn’t sound too great.

The Liberals have claimed a special spot for “small growers” in the Cannabis Act. There is a provision for 4 plants per household, and the task force even recommended legalizing sharing.

Home-growing and “sharing” (wink-wink) will create all sorts of loopholes and workarounds for people already used to ignoring cannabis laws. And they’ll need these loopholes, for Liberal legalization is cultivating cannabis shortages.

It is the same problem the Soviet Union was tasked with. Given the infinite complexity in the economic options one can take, how do you know which is the right course of action?

Individuals in private enterprise have competition. They have the price system which originates from mutual trade, through the discovery of value.

Confiscation is categorically different from free trade.

Since the Liberals are running a tax-funded monopoly, they too will face the supply/demand problem that plagues every statist regime.

Many people intuitively understand this. Or see it right before their eyes even when it has yet to materialize.

Aaron Salz is an investment analyst on Bay Street. He is a consultant to some of the larger licensed producers. Salz said: “We are going to have a supply shortage. I’m highly confident of that.”

Since taking over the government, the Liberals have yet to dismantle the LP-scheme. The safety and security codes (borrowed from a nuclear power plant design template) still apply. However, tweaks have been made so the current LPs can expand easier.

Still, cannabis consultant and investor Paul Rosen says, “I think we will be critically short.”

There are more Canadians that want to buy cannabis than the LPs can produce currently or even by July 2018.

Of course, this has never been an issue in the “black market,” where, for the last couple decades, consumers have more-or-less ruled. Cannabis entrepreneurs have crowded out most of the gangs. The rules are unwritten, they have developed organically over time.

Now, all that needs to be done is the legalization of this existing market.

The uproar over the LPs and Harper’s original overhaul of the medical regime was the fact that he ignored this BC Bud market.

He tried to physically remove $5 billion from the BC economy and replace it with Ottawa-connected pot producers. Kind of like what Pierre Elliot Trudeau did with Alberta oil.

Now, it’s Justin’s turn.

He may have lifted the boot slightly, but the heel is still pressing hard. Perhaps he’s cool and is just moderating his message for the base, bro, calm down, brah, be patient… Perhaps the government will eventually respect the “small growers” by decentralizing control, even if it means successive battles after the initial Act is given Royal Assent.

Either way, markets always prevail.

  • Robert Wright

    I will never buy from LP’s because I know I can grow better safer bud that hasn’t been contaminated with deadly chemicals Organic is the way to grow all the government has to do is stay out of it they F#$* up everything they touch.

    • Clay McCann

      If they “touch” the LP system at all. My take on operations is the Liberal Government is permitting the LP’s to write their own legislation. Such is neoliberal governance in the 21st century, incentivizing outcomes between greedy corporations in the name of (imagined) tax windfalls. And how is that working out in the great cannabis laboratories to the south? We do know that gram prices are dropping, and with them, tax revenues. So what good will come of the LP system when cannabis is the price of black tea, and Phillip Morris is running the show? Seriously: ?. I want the sh*t Justin Trudeau’s been smoking!

  • Clay McCann

    “Markets always prevail” is hardly comforting. The global market for dictators has never been better, the market for famine, environmental desecration, and violation of the universal rights of human beings is booming. That does not mean it should be read as a good thing.

    Like it or not, to fit an enormous, hairy furball like the cannabis black market through the narrow aperture of public safety standards & avoid being sued by every doctor, PAC committee, and right-wing bigot with an axe to grind, the Government of Canada would have to do some pretty skilled footwork. And skilled footwork is not in the Liberal Government’s toolbox. Oh, there’s tools in there, you betcha, just not the kind you’d need to pull something like this off with grace and determination. They’ve already demonstrated they are lazy, nepotistic, and oddly nostalgic for a tax regime that can pay for itself. And, from the looks of C-45, Trudeau seems to think it acceptable to suspend civil liberties (just like his dad!) in regard to legislating stop-and-search/extraordinary police powers, civil forfeiture, and the like.