This is not to deny that organized crime participates in illegal marijuana distribution (Hager 2015). And
analyses by Wynoch (2014) and Easton (2004) suggest significant profit margins throughout the supply
and distribution chain, which might act as incentives for black market activity. Legalization can reduce these
problems – if prices decline, say, or economies of scale grant producers higher profits. To discourage continued
black-market activity after legalization, the federal government should not only define the legal amount of
marijuana an individual may possess, but also maintain and elaborate penalties for illegal production and
trafficking.
Regulating production and supply of marijuana should remain a federal responsibility (as it is currently for
medical marijuana) to ensure uniform standards throughout the country. Federal control is also necessary in
order to ensure a seamless coordination and regulation of national supply – especially important, given ongoing
concerns about health effects of consistent marijuana use. The federal government should ensure that Health
Canada has the ability to monitor production, inspect facilities, and take other measures to ensure a sufficient
market supply of safe products.
