With the resumption of parliament only a few days away, most people are at the edge of their seats awaiting the new budget to be announced by Harper. To avoid a vote of confidence, we are expecting as much as a $30 Billion deficit, with spending on infrastructure, tax cuts, and employment insurance. Considering only a few months ago, Harper denied the allegations of Canada even being in a recession; this will be a major step towards fixing the economic hardships which we are all enduring. The idea is to put government spending towards the growth of the lower and middle classes to ensure consumer spending, thus kick-start the economy.

Thirty-billion dollars is a lot of money. What happens if this deficit occurs and no change is done to our economy? Worse, what happens if with this major spending and deficit, our country goes further into recession? Where is this money going to come from? Will Canada spiral further into debt? Could we face the ever growing fear of another depression?

While these questions linger on everyone’s mind, infrastructure plans need to be perfected, spending must occur, but at the same time futile transactions must stop; jobs need to be created. Money must be put into the hands of the consumers. Confidence in not only the economy, but also the corporations and companies that keep it running, must grow. How do we go about doing that? Economists from around the country are working around the clock to figure out plans to ensure the growth of our economy, but they are – in the end – trapped within a box of their own creation, unable to take a step away from it, to gain an outside perspective on things.

“With every action there is an equal and opposite reaction.”

With the downfall of the economy, we are seeing a growth in the black market. Crime rates are going up. Drug use grows for those only wanting escape from a stressful life. And those who are profiting are only spending more into what I call the Black Economy. Stolen goods, hard drugs, soft drugs, fake money. It’s all on the rise. So while these black market entrepreneurs get rich, we are seeing more and more poverty grow; more homelessness; more starvation; a bigger divide between the classes. How do we stop this? We can’t. The Black Market cannot be destroyed, the policing that is done can only subdue it and – in a way – make martyrs of those who gain from it.

If you can’t beat it, join it.

Yes, I said it. Lets incorporate a chunk of the $400 Billion a year international illegal drug industry to help support those whose needs have been overshadowed by bailouts, politics, and economic uncertainty. Now, I am not insinuating that the LCBO should sell crack, heroin, crystal meth, cocaine or any other harmful or addictive drugs. But what about marijuana? Considering it was included into the Opium and Narcotics Act of 1920 in 1923 without any obvious scientific research, parliamentary debate, or any real awareness of a social problem, it’s a wonder why cannabis is illegal at all.

From the beginning pot has been put onto the same level as opiate drugs such as heroin and codeine, and been included in legislation since then. From the Opium and Narcotics Act, to the Canadian Narcotics Control Act (passed in 1961) to the current Controlled Drugs and Substance Act (passed in 1997), marijuana has been classified as an illegal drug for what seems to be no apparent reason. Health risks of marijuana is comparable to those of obesity, alcohol abuse or tobacco use. So let’s make McDonald’s, KFC, and Harvey’s illegal. Lets make Ontario wine illegal! Let’s make the tobacco industries of Canada illegal!

If making marijuana illegal had anything to do with health risks, I would say the government would have made all these things illegal long ago. But, the government makes far too much money off the taxes on alcohol, and the increasing prices of tobacco to ever be able to make it illegal. And who can really tell the millions (if not billions) of people around the world who enjoy fast food that we are making McDonald’s illegal. Sure, it might save lives, but in the end – just like alcohol prohibition – there would be Big-Mac barons smuggling McD’s into the country, bringing fast food for all the obese people in Canada. All the money they would make would stay in their pockets, create more criminal activity, and be sent to the Black Economy to never be turned over and trickled to the people in our country who need the money.

What do you think the prohibition of marijuana is doing? Giving money to those flying beneath the radar of our government. Mass amounts of money, never to trickle down unless one becomes a drug dealer, marijuana grower, or money launderer. Let’s not forget the ever profitable middle man. Prohibition comes to more of a cost, more problems, and more hassles than it is worth.

Let’s go back to the possible $30 Billion deficit. How would the ending of the marijuana prohibition help ensure Canada does not have this deficit lingering over our heads for long? To maintain cannabis prohibition, the government spits out $500 Million a year, $150 Million of which is contributed to court costs. In 2001, 70,624 citizens were arrested for cannabis related crimes, and three quarters of which were arrested with simple possession charges. That means the $150 Million of court spending is generally spent on those who are simply smoking some weed, only one quarter of which ending up being the drug dealers, growers or those unlucky enough to be caught with large amounts of marijuana on them.

How many people do you think smoke weed? In 2002, 3 million Canadians admitted having used marijuana. Thats 12% of the Canadian population over the age of 15. Half of those who admitted to the use of marijuana smoke it recreationally, 10% saying they smoke it daily. This number jumped to 4.5 million in 2004. Two years, 1.5 million more people admittedly smoking cannabis. There are 10 million Canadians who have admitted to using marijuana at-least once in their life. That’s nearly one-third of the Canadian population. Less than 1% of Canada’s marijuana users are caught by the police. Half get off with a warning. Seems like a waste of $500 Million a year doesn’t it? By saving that money, we would be out of the $30 Billion deficit in 60 years.

Of those who are aged 18 – 24, 70% have admittedly smoked cannabis. Who do you think is being caught by the police thanks to the prohibition? The laws ensure that those who are smoking personal amounts in the comfort of their home can pretty much never get arrested. Instead, it is the youth who cannot smoke in a house, but rather must either smoke out in public, or in their car (especially with the harsh Canadian winters) who are being arrested and charged. There are approximately 600,000 Canadians with criminal records because of marijuana possession. This limits employment possibilities as well as travel. How many do you think are youths trying to start their lives only to be stopped dead in their tracks because of a criminal record by police with nothing better to do than to arrest some kids smoking weed?

That’s just the tip of the cannabis iceberg. Nearly two-thirds of Canada’s population is in favor of decriminalizing marijuana. Should the wishes of the majority of Canadians be considered, or should we just witness another situation where the wishes of the few out weigh the wishes of the many? Decriminalization is one option. Stop worrying about the marijuana users and just look for the growers, dealers and middle men. The only problem with that is the profitability of being a drug dealer is too good. Arrest one, another will take his/her place. A never ending cycle.

Drug laws in Amsterdam, Holland are based on the idea that every human being may decide upon the matters of its own health – hence why euthanasia (or assisted suicide) for terminally ill patients is legal. Having noticed that Richard Nixon’s “War on Drugs” in the 70’s only made drugs a forbidden fruit to most, the Dutch decided to try things a little differently. They, at first, split drug use between two sections. Hard drugs which include cocaine, LSD, morphine, and heroin are illegal. Soft drugs which include cannabis in all its forms and hallucinogenic mushrooms (a.k.a. magic mushrooms, shrooms, zoomies) are legal under conditions of personal use, though the selling of hallucinogenic mushrooms was banned in November 2008 due to a small number of certain fatal situations.

The selling of marijuana in Amsterdam is widely tolerated providing it is limited in a controlled way. This means coffee shops can sell cannabis in small portions – 5 grams maximum per transaction – as long as there is not too much cannabis on stock and providing it is only sold to adults, that means no minors on the premises. These coffee shops must also adhere to the laws calling for no advertisements that show the sale of drugs. These laws seem to almost be a test for the world. Although there was a mass growth in marijuana users at the beginning of the legalization of marijuana, now, among young people with a median age of 28, only 16% have ever smoked or ingested marijuana. These numbers prove that when soft drugs are widely accessible to the masses, they tend to lose much of their appeal.

So what are the problems with Amsterdam? Since production, trading and stocking of large amounts of drugs remains illegal, one must question where all the coffee shops are getting their accepted small quantities. In-fact, a large scale of the cannabis sold in coffee shops come from illegal sources inside or outside of the country. Because of this, a state controlled farming in greenhouses is being planned.

By learning from outside sources, Canada can quite easily legalize marijuana by adopting their plans, but changing certain things to ensure maximum profitability in these times of economic uncertainty.

Based on my research, I have conducted a plan that could work for Canada. It would ensure not only that the marijuana sold is pure and regulated, but also ensure that the government gets the taxation it deserves from a commodity that has made Canada and – more notably – B.C. world renown.

Step 1: Nationalize a marijuana seed bank.
Since cannabis seeds are not illegal, this will not be a hard task. First off this would ensure that only those who are legally aloud to grow marijuana get the seeds. There could be a system set in place that allows for permits to those wishing to grow their own marijuana for personal use. This system could be set up so these people get searched at the border between Canada and the United States more thoroughly. For those who are growing for personal use, a maximum amount of plants per household could be put into place, for example, three plants per household. Since one could not tax the actual marijuana buds, the price of seeds and thus the taxation upon them, would be determined by the potential output of marijuana by each plant. This would all be dependent on which plant the grower decides to produce as different plants produce different amounts. During income tax time, one’s permit would also be included to ensure there is a yearly tax put onto those who are willing to grow their own marijuana

Step 2: Allow for marijuana farmers.
These marijuana farmers would also need to buy the seeds for their plants from the now nationalized seed bank. Yet again they would need to get a permit and extra searches at the border, but they would also be forced to have certain health inspectors ensure the marijuana is being grown properly and without any harmful ingredients/substances added. Yet again the prices would be deduced by potential marijuana output, but since they are farmers certain price variances would occur from the personal user to the farmer. Also, the farmer would have to make notice and receipts of all those to which the farmer supplies the marijuana. The marijuana produced by farmers would inevitably be given to companies rather than persons. Once sold to the companies, the marijuana would be taxed once again. Yet again during income tax time, the marijuana would be put onto the farmers’ taxes to ensure that although no new seeds may be bought, the marijuana plants are continuously being taxed according to potential marijuana output.

Step 3: Create outlets for the consumer to buy marijuana.
Just as liquor is sold, one can ensure that there is a kind of LCBO for marijuana use only. Obviously this would be subject to age, and yet again taxation. There could be a maximum amount of marijuana bought per transaction – as there is in Holland – as well to ensure no over-abuse of the substance. Also, there could be coffee shops (just as there is in Amsterdam) that are akin to bars. No minors aloud on the premises. There would be joints, bong hits, and edibles sold to the consumer, yet again subject to taxation.

Why would one want to allow personal growth of marijuana? Growing pot indoors has become uncomplicated and highly profitably. Anyone willing to put the time and care into growing a marijuana plant can produce it quite simply. So why limit people to only buying marijuana at a store or bar? People will always be able to grow marijuana themselves, but with this plan, at least it can be controlled, priced, and taxed based on the possible output of marijuana the grower would have. Also, it would ensure that there is a maximum quantity available to personal growers, guaranteeing sales to only those willing to farm for the production of marijuana towards the average consumer. Lets not forget, as long as the growing of marijuana is legalized, there can be legitimate businesses selling growing materials which will also be taxed. So although it would eventually be a little bit more profitable to grow one’s own marijuana, those who are not willing to have a continuous supply of marijuana (or who only smoke on occasion) can easily buy a small amount from either a store akin to the LCBO or at a marijuana bar.

The author of “Bud Inc.”, Ian Mulgrew, has come across some very surprising numbers to which the marijuana industry is based upon. After long hours researching and number crunching marijuana sales, Mulgrew has found that the marijuana industry is Canada’s most valuable agricultural product, more valuable than the wheat industry. In-fact, he estimated that in 2000, B.C.’s export market alone was worth not only 3% of the province’s GDP but that it was nearly equal to B.C.’s mining and oil-and-gas sectors combined. These prices are also only the whole-sale value of the industry, it did not reflect the markups or the cut that inevitably goes to every middleman. So, if you looked at the total value of the crop in 2000 alone, one could come upon a figure between $5.6 billion and $7.1 billion. If this number was not enough, across the country, Mulgrew estimated the industry was worth $5.7 billion in wholesale price, and $19.5 billion at the retail cost of things.

If the taxation upon these numbers were put at 10% for example – and since the marijuana would be subject to taxation at least twice (more so three times) – there would be taxation on not only the wholesale price, but also the retail cost. Canada’s government would then produce $570 million in the wholesale of marijuana, and another $1.95 billion for the retail sale of marijuana. That coupled with the savings our government would have with the destruction of the cannabis prohibition would mean $3.02 billion in extra money every year. That number, of course, does not include the taxation and profit from the seed bank as well.

Imagine what good could be done with this kind of money in taxation. Simply put, the $30 billion deficit which Harper will possibly put our country through could be wiped out in less than 10 years time. Or better yet, wipe it out in 15 years, and have $1.02 billion dollars a year put towards social programs such as healthcare or even post-secondary education (make it either free or lower tuitions) to ensure a better future for our country.

Now, after having talked to many people who enjoy their daily consumption of THC (the active ingredient in marijuana that gives you the “high”) I have heard concern about skyrocketing prices. This is why I must point out that these numbers are all based on the street price of $10.00 per gram (comparable to the U.S.’s $20.00/gram). This also means that if the government were to try mark up the price of marijuana, it could quite simply be leveled out by the black market – which will always be around – to ensure the price of this commodity will never increase. This will mean there will be more trust in the companies which sell the marijuana, customers knowing they are not being had for all their money because of a lack of choice (something fairly new to Canadian consumers). Although, to be honest, I doubt too many people will be upset to pay $10.00 + Tax for legalized marijuana with a list of all the different kinds and flavors on a big board or menu.

So after all these facts, I must bring to light a few extra add ons (to which I have no numbers of) that could ensure a prosperous Canada during these times of uncertainty. How much tourism do you think will occur from the United States? From the world? How many more hotels/motels/hostels do you think will be made for the growing number of tourists? How many more restaurants will make good business? How many marijuana bars do you think will be able to be built – providing jobs and entrepreneurial possibilities to Canadians? How much more marijuana do you think will have to be farmed, produced, and sold to keep up with the growing tourism? All taxed. All going directly to our economy.

In these times of trouble, how can we ensure that the $30 billion deficit will do anything to better our economy? What happens if the money towards infrastructure is not enough? What if this recession is completely different from any we’ve had in the past? What if our recession was simply caused because of deregulation of the corporations who take too much and give too little in return? What if the lack of innovative thinking by not only companies but also our government has been what has created this recession? What if simply spending (or wasting) more money to try to fix the problems won’t work? What if instead of helping our economy, it only sends us spiraling towards another depression? What if we need to invest money into a future which is different from our past?

For all those who still need convincing, I must point out a few things. First, with the government regulation of marijuana, it will be much harder for those younger than the age of 18 or 19 (depending on what age is made into the legal age) to buy marijuana. Simply put, it is much easier for kids to get marijuana than alcohol. Drug dealers do not care what age their customer is, anyone with any kind of connection who asks enough people can get marijuana on the streets. With this system put into place, we can have better assurance that children do not get their hands on marijuana, in which case the onus will be on not only schools, but also parents, to ensure children understand the dangers of marijuana consumption, just as it is with alcohol and tobacco.

Second, I would like to point out that those who choose not to smoke marijuana do not necessarily have to and this article is in no way trying to convince people otherwise. Rather, this will ensure that those who do choose to consume marijuana in any form, will at least be helping the economy rather than furthering the strength of the black market, stopping the growth of drug wars on the street, and provide jobs for hundreds of thousands of people in our country.

With the numbers of Canadian pot-smokers growing, what other option do we have? Do we continue to allow those with simple possession to be the large percentage of people charged and arrested? Do we allow the abuse of tax payers’ money on a prohibition that is doing nothing more than wasting police time and energy on a battle they will most definitely lose? The choice seems to be clear. And for all those still against it, I must ask one thing. With no parliamentary debate over the inclusion of marijuana onto the illegal drug list. With no real ability to regulate marijuana consumption. With just under one-third of the population admitting to providing money to the black economy rather than our own. With the possibility of a minimum of $3.02 billion a year thrown directly into our economy. Why is marijuana illegal? I have yet to hear a valid argument, and until I do, I must come to the only conclusion one can come to: You want to save the economy?

Legalize marijuana.

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Tags: Budget, Economy, harper, legalize, marijuana, recession

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