Saturday, June 22, 2019

Pew! - The state of cannabis in Canada

Wondering how the cannabis industry in Canada is faring since legalization last October? Nah, me neither, really. I am still far from convinced that it was a sensible move, and I still think that some pretty deleterious effects will become apparent over time. But, if you are interested, an article in the Globe and Mail summarizes pretty succinctly recent StatsCan data on the subject.
The cannabis industry contributed $6.7 billion to Canada's GDP, which represents about a third of the amount spent on alcohol, and about the same as the amount spent on wine. However, only $2.3 billion of that was due to the legal licensed industry; the other $4.4 billion (i.e. two-thirds) came through the illegal black market, you know the one the newly-legalized industry was supposed to supplant. This is partly because of the spotty and inefficient roll-out of retail cannabis stores and on-going supply problems, but mainly because the average legal price of weed is $9.99 per gram, while the average from illegal sources is around $6.37, a discrepancy that was widely foreseen pre-legalization. Industry people say they expect a continued shift towards legal sources. Well, they would, wouldn't they?
What does seem clear is that, for better or worse, more people are using the stuff. Almost 18% of Canadians over the age of 15 used some form of cannabis in the first few months of this year, up from 14% before legalization. Perhaps more worrying, 13% admit to using cannabis before or during work. Men are more likely to be users (22%, as compared to 13% of women), which may just mean that more women than men are concerned about smelling like a skunk. And, of course, younger people are more likely to use it than older people (30% of 15-24 year olds, and 24% of 25-44 year olds, with a significant drop-off thereafter). Yukon, which can probably least afford it, spends the most per capita, followed by Prince Edward Island, and, perhaps surprisingly, Ontario and British Columbia spend the least per capita.
So, make of all that what you will. Personally, I haven't really noticed any more of a stink in our neck of the woods, but I guess over time usage is only going to increase. And who know what social, psychological and health effects will come of that. But, hey, think of the tax revenue!

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