mr. kleiman in particular. i assume we're running on the assumption that what we'd want to do with a legal market is to diminish the size and the consequences of an illegal market. now, i'm wondering if the extent that some of you suggest the government would directly regulate even through monopoly the business, wouldn't that then create multiple incentives for there to be a black market running concurrently with the federal marketing for children, for people who might want to circumvent the registration and quota regime that you suggest, is i just put that question out there. >> so that, it's a good question. it requires a slightly extended answer, if i may. distinguished between the short run and the long run, right? in the short run, the regulatory system this washington has -- in washington has to compete with an illicit market and with the unregulated, untaxed medical market. and that puts an upper bound on how tight the regulations can be. also seems to me, it puts a premium on law enforcement, right? the

mr. kleiman in particular. i assume we are running on the assumption that what we're trying to do is diminish the size of an illegal market. i'm wonder erg if you suggest that the government would directly regulate even throw monopoly the business, wouldn't that then create multiple incentives for their to be a black market running concurrently to the federal market ix -- market, marketing for children, for people that might want to circumvent the registration and quota regime that you suggest. so i just put that out there. >> it is a good question, which requires a slightly extensive answer. in the short run and the long run. in the short run, the regulatory system in washington has to compete with an i willist market and an unregulated market. that puts an up or down on how tight the regulations can be. also, it seems to me, it puts a premium on law enforcement. the day before you legalize canibus, if you arrest the marijuana dealer, all you are doing is creating a niche for a new marijuana dealer. not really

mr. kleiman in particular. i said we are running on the assumption that what we want to do with illegal market is to diminish the size and consequences of an illegal market. now i'm wondering if the extent that some of these suggest government would directly regulate through monopoly the business wouldn't have then create multiple incentives for there to be a black market running concurrently with the federal market for children and for people who might want to circumvent the registration" of regime that you suggest so i would just put that question out there. >> it's a good question and let me slightly extend the answer if i may. let me distinguish between the short-run and long-run. in the long run washington has to compete with an illicit market in unregulated untaxed medical market and that puts an up or down on how tight the red red -- regulations will be. also it seems to me the premium on law enforcement, the day before you legalize a rest a marijuana dealer all you are doing is creating -- the day after

mr. kleiman in particular. on the assumption of the legal market is to diminish the size and consequences of the near legal market and i wonder if the extent some of you suggested the government would directly regulate the monopoly business wouldn't that create multiple incentives to be a black market running to the federal market for people who might want to circumvent the registration that you suggest. >> they are distinguished between the short run and the long run. the regulatory system in washington has to compete in the unregulated medical market and that puts an up or down on how tight regulations can be. also it seems to me it puts a premium on the law enforcement. the day before you legalize cannabis if you arrest marijuana people argue creating a niche for the marijuana dealer not really reducing the supply of marijuana at all. the day after you legalized you can push the customers towards the legal market so paradoxically the benefits of the cannabis law enforcement against illegal production and sal