The Government via regulations is destroying the cannabis industry: Ontario’s pot store lottery WINNERS are selling their Pot shops – August 9, 2020,
A quick reminder to the reader of this article, the government destroyed the tobacco industry. The exact way the tobacco industry was destroyed was via government regulations. If you’re wondering why Western nations are experiencing the growth of their Welfare States and an increased level of poverty, it’s primarily because of government regulations.
For the record, currently, Ontario has a Conservative Premier, in Canada, a large segment of the Conservative Party members believe in socialism. Doug Ford believes in supply management. If you’re unaware of what supply management is, Supply management is a system that allows specific commodity sectors to limit the supply of their products to what Canadians are expected to consume in order to ensure predictable, stable prices.
In easier to understand terms, supply management is a government price control. Now, after supply management is implemented, most Canadians will forget that it’s there and imagine that they’re not paying an inflated price for something at a retail level.
Supply management doesn’t seem like a big deal until you understand how it affects the pricing of everything and also pushes people to stop being productive because if let’s say I have a great idea for what I can do in the cannabis industry, but because of the government it’s illegal for me to it, I’ve all of sudden become less productive thereby not creating any jobs and in this tyranny based system I’m also providing the government/public sector with less tax revenue, thereby via our central banking system, this equates to government workers and their welfare consumers being paid with printed money.
When government workers get used to getting paid with money not derived via private sector, it’s very easy for the Government and people who believe in a big government to imagine that this standard of living we’re currently enjoying is sustainable.
As an investor, I know where and how the cannabis industry can be profitable, but it’s going to take some time in Canada and quite frankly I don’t see it as worth the wait, because in a free market, it’s been proven that cannabis, although it can hold it’s own, will suffer from major deflationary pressures.
Cannabis finds it’s value primarily because the government makes it taboo. Tobacco isn’t taboo, what it is via the government, is it’s expensive to produce and it’s expensive to consume, it’s been limited to the major players who pretty much now have their own tobacco supply management system.
A minimum wage or I should say a wage or price control benefits the very wealthy business owners because they can afford to pay the necessary costs to stay in business, regulations are welfare for the rich and powerful. As an example, if Joe Biden wins the election and starts making good on the promises he made to voters, he’s going to give the rich both a tax loophole and their own supply management system.
When Trudeau bailed out Canada’s mainstream media, that was a form of supply management, Canada’s mainstream media was suffering because they hadn’t and still haven’t learned to compete in the new digital world and therefore instead of letting them fail, Canada’s federal government decided to give them an unfair advantage on their emerging competitors.
Supply management changes culture, it creates a sense of entitlement in almost every sector of the economy. It eventually becomes the norm and barely any person questions its existence.
Think about the terms used in the article below “Ontario’s pot store lottery winners” meaning they were privileged by the provincial government to open a Cannabis and therefore they also benefit by being able to sell their business for an inflated price, because of course there’s always going to be buyers who think that they will fare better.
But if no lottery system existed, these Pot shops would probably have NO VALUE! convenience shops and restaurants in Toronto with prime locations still have a hard time selling, because the truth is anyone can start a restaurant or convenience store, the real question is can you profit from one?
In the Cannabis industry in Ontario, the question isn’t can you sell, the question is can you force people to buy cannabis at an inflated price from you? The obvious answer to that question is NO! because cannabis is a plant, it’s not even wine or a beer which has to go through a process, it’s a plant anyone can grow on their own and if you’re a pothead, chances are you hang around a lot of other potheads who like growing or smoking their own pot or pot from people they’re associated with.
Plus the excitement of buying illegal pot is a much better high than buying cannabis from the government! As I’ve stated in other posts even people on welfare don’t like going to government offices. If you ask most people on Social Assistance if they’d prefer to get their welfare cheque without having to ever see a government person or go to a government office, these welfare consumers would say HELL YEAH!
The government always has to make a big government seem like the right thing to do in order to sell it to voters. Anyway, I write these posts primarily because I expect people will read them after the Canadian economy crashes! I write these posts so Canadians understand why the Canadian economy crashed.
In August 2020, we’re still living in the good times, nobody sees the cash flow crisis the Canadian economy is facing. The keyword I will keep using is the Canadian cash flow crisis because what Trudeau did is he’s made debt servicing an almost impossible task in the very near future. Canada is not Japan, Canadians will soon comprehend why negative interest rates won’t work in Canada.
Canada is also not the worlds reserve currency, as bad as President Joe Biden might be, as long as Americans have property rights, they’ll have the worlds reserve currency, the world does not want a Gold Standard, because if there’s a lack of U.S dollars to service the debts of the world, there’s an even shorter supply of Gold, a Gold Standard would equate to austerity measures all over the world, and no country can handle that type of shock.
What this equates to is debt servicing, Canada isn’t built to create jobs and our tariff system won’t allow consumer prices to deflate, this supply management all over the Canadian economy equates to a higher barrier to entry and Canada won’t be able to fill that void as more and more Canadian businesses go bankrupt and are not replaced.
The public sector will be paid with devalued Canadian dollars, this will start to become evident eventually, and regardless of what the forex markets signal with the value of the Canadian dollar, domestic price inflation is going to cause all sorts of cash flow problems in the Canadian economy. In the forex markets try to remember that those Canadian dollars usually aren’t being SPENT in Canada!
Now in Austrian economics, you learn that the price of everything won’t be inflated, because the Canadians government doesn’t have a heavy hand in every segment of the economy, but the government has price controls all over the Canadian economy and price controls equate to prices not being able to deflate because public servants wages and welfares don’t deflate.
Lastly, Canadians don’t save, the Japanese people are savers, it’s their government that’s in trouble, the Japanese people do not trust their government, Canadians on the other hand, a lot of us trust our government and this is why a lot of Canadians are in so much debt because in the back of their minds they believe that the government will have their backs.
Money is supposed to represent your value in the marketplace, well when people who are providing little value to the Canadian economy are being propped up via the Canada government, during periods of economic crisis everything gets exposed!
There comes a time in history which there’s nothing the government can do! Anyway, I don’t know how to make things any clearer, prepare yourselves accordingly!
Ontario’s pot store lottery winners sell shops as more consolidation expected | 570news.com
Interesting times ahead!