Denver's Medical Marijuana Dispensaries Gain National Attention

Denver's Medical Marijuana Dispensaries Gain National Attention

The medical marijuana dispensaries that some oppose are in fact a reflection of Denver's compassion and entrepreneurial spirit.

The national media attention Denver has received in recent months has caused critics of Colorado's relatively pro-MM laws to rename Denver "Cannabis Capital U.S.A." As this article in Westword points out, Denver has so far issued over 390 dispensary tax licenses, with more applications coming in every day. By comparison, the ubiquitous Starbucks coffee chain has fewer than half as many stores in the entire state.

As City Treasurer Steve Ellington pointed out to Westword, however, this does not necessarily mean 390 medical marijuana dispensaries are up and running within Denver, merely that a license to collect taxes has been issued. The true number of medical marijuana dispensaries is unknown. Still, critics enjoy making wild and irresponsible declarations of doom, often using the predictable cliche that Denver "is going to pot."

Are there too many dispensaries in Denver? Yes. But is it something the public need to worry about? No.

Medical marijuana dispensaries are new to Denver and we can trace their proliferation only back to the beginning of 2009 and the Obama inauguration. At that point, those seeking to enter the medical marijuana business rightly assumed they would see a thaw in the federal government's attitude toward enforcing antiquated anti-marijuana laws in states where medical marijuana was permitted. Entrepreneurs jumped in with both feet, and dispensaries sprang up seemingly overnight.

Was the response to the federal government's change of heart in proportion to the demand for medical marijuana in the state? Likely not. Over the coming months, we will likely see many of the smaller dispensaries close their doors as the law of supply and demand takes hold and the market achieves equilibrium.

It's important to remember that the financial risk of opening a medical marijuana dispensary is born entirely by the dispensary owners, not the public. Whether the business thrives or fails is of little concern to anyone but the dispensary owners themselves. The mere presence of a dispensary on the street corner does not mean that it is there to stay - nor does it correlate to any increase in crime or decrease in property values. A dispensary does not open its doors to the public. Only legitimate medical marijuana patients screened by both physicians and the state may purchase medical marijuana.

Such proliferation is typical any time a new business model becomes viable. During the late 1990's, internet start-ups sprang up like dandelions, only to disappear a few years later once the "irrational exuberance" of the market faded. Rather than viewing dispensaries as blight, Denverites should embrace their presence. They have elevated Denver into the national spotlight, highlighting the city's compassion and entrepreneurial spirit. How we handle the issues surrounding dispensary regulation may well serve as case study for the rest of the nation.