A New Dawn

Legalizing the use of recreational marijuana was a brave policy decision by the federal government. However, its actions after the decision have been less laudable. One of the central recommendations in my earlier work was the establishment of a federal agency which could coordinate policy decisions across provinces. Having provincial diversity in regulations isn’t necessarily a bad idea as it results in opportunities to study and understand the costs and benefits of different regulatory structures. However, having key policy decisions missing important objectives is definitely undesirable. In this context, the relatively limited number of retail stores in most major provinces could lead to an entrenched black market. Coupled with the ease in ordering illegal supply through easy to navigate apps and the likely shortage in legal supply, Canada might have less than an auspicious start to legalization. For further discussion on some of these issues please read my C.D. Howe study.