Over the next couple months the Denver City Council will continue to debate whether or not they should allow new businesses to enter the marijuana market.
Wednesday 12 of 13 special committee members met to discuss the issue. According to the Denver Post, another meeting will be held Monday, Jan. 11. Law enforcement officials will deliver a presentation explaining the risk that comes with lifting the moratorium that is currently restricting entrepreneurs from opening up pot shops.
After researching both the recreational and medical marijuana markets in the Denver area, authorities believe that if more companies are established and enter the market, it will bust. Meaning the supply will exceed the demand, causing a surplus.
This market analysis expands to argue that a surplus of marijuana will force business owners to sell the remaining inventory on the black market.
Councilwoman Mary Beth Susman argues that marijuana should be treated like alcohol. The government does not monitor the supply and demand of the alcohol or cigarette markets, two other legal products.
“I’m wondering why we are singling out the demand-supply question for marijuana, and what do we do about alcohol? Because there’s a black market for alcohol, there’s a black market for cigarettes,” Susman said.
Ashley Kilroy, a marijuana policy advisor consulting the committee, responded to Susman’s questions. Explaining that marijuana is still federally illegal, leaving it in questionable territory, unlike alcohol or cigarettes.
Kilroy is gathering her own research, highlighting prospective places for new dispensaries or grow operations to open. Many members of the industry believe there are only a few places left that meet the zoning regulations.
To read more about the issue, check out the full Denver Post article.