Navigating cannabis legalization 2.0
The market price of cannabis plummets with legalization
Tuesday, December 4, 2018
Legalization is not a simple yes-or-no decision, and its consequences for health, public safety, and social equity will be shaped by choices about production, prices, and the enforcement of regulations. As the next round of states debate legalization, they would do well to contemplate allowing state governments to control the wholesale prices and linking the price of cannabis to its potency. Low prices mean low wages for workers and potential bankruptcy for all but the most efficient producers, with craft-scale production driven out by industrial farming and “mom and pop” retailing driven out by sellers with big budgets for marketing. This price drop is a problem for those who want the legal cannabis market to provide economic opportunities for the individuals and communities that have been disproportionately affected by cannabis prohibition.
