Why The Canadian Governments Policies on Marijuana Legalization is fueling the Black Market – November 20, 2019,
To answer the question quickly, the reason the Pot legalization isn’t helping the government collect more tax revenue is that, Marijuana is a plant that is burned. I know a lot of people who simply like to grow plants, it’s a passion or a hobby, they do it because they love it and if they can make money doing it or it can increase their social standing, they’ll do more of it. Then there are the capitalists in the black market that make their living selling Pot, because again it’s nothing more than a plant and if the government is out of the way, meaning that you can avoid paying taxes for selling it, then both the consumer and the vender go away feeling like champs.
If you’re an investor where Marijuana will gain value is products that are smoked but are instead consumed in various other was and this development might be delayed because there are a lot of regulations surrounding the selling of marihuana, which basically means they’ll need to be creative vendors that will have to find ways to create value where there currently is none. I personally think this will happen eventually, but the upside is minimal with government watchdogs basically setting limits on what’s acceptable and what’s not.
The upside to any Marijuana-based company could result in litigation if their product is proven to cause some sort of disease like an addiction or something else that a person can use later on down the road as a means to sue a private company. So, from an investment standpoint not only do Marijuana businesses have to create value, but they also have to make sure they’re aligned with whatever government is in power because one wrong move and there could be problems. Now, with alcohol-related litigation, there are several instances of prejudice in the courts being set, so typically companies and the lawyers that represent them, know how the law will respond to Alcohol-related litigation, however, Marijuana is still new and this is what gives investors the jitters with upstart companies.
Burning Marijuana is an accepted practice, but you say what’s happening with Vaping now, now litigation lawsuits are starting to form around the practice of vaping and this, of course, leads to more government regulations, this, of course, can kill an entire stock buy and this again kills peoples willingness to get involved in the legal marijuana trade. This is not to say that the industry won’t eventually flourish, but a few players will have to stand out before the market is comfortable enough to say, this investment looks solid.
Donald Trump is a rare president that cut regulations, typically what you get are politicians who add regulations, regulations can destroy an entire industry. Brake pads squeak a whole lot more not, because using Asbestos is illegal because it causes cancer. Imagine new discoveries of Marijuana are found. I used to hear all the time smoke Marijuana hasn’t killed anyone, well, of course, it didn’t it was illegal and if you know anything about death it’s not as detailed as they make it seem on those sci-fi channels, cause of death is unknown sometimes, this person just got sick one day and nobody knows what happens, well now that Marijuana is legal a spotlight will be put on it, the same way a spotlight was put on Alcohol, nicotine, and Tobacco. Tobacco, after all, is only a plant, so this is the main problem governments will face. A Google of Marijuana has to emerge and until it does, this fleeting industry will be based on burning the plant.
The entire tobacco industry is dead because of government regulations, it was flourishing until the government deemed it a bad thing, the market didn’t kill the tobacco industry the government did. People forget how rich this planet would be without government intervention, sure there are certain regulations that are necessary, but there are also a lot of overly-regulated industries that have left a lot of people empoverished. Very interesting red below by Don Pettis worth reading.
Only governments can solve the Canadian illicit pot crisis: Don Pittis | CBC
Interesting times ahead