Morgan Stanley Says Global Wine Shortage; We Say Cannabis Great Substitute

Morgan Stanley Research (Oct 28, 2013)

Quick, wine connoisseurs, panic! Morgan Stanley Research released a report on Monday showing global demand for wine exceeded supply by approximately 300 million cases. The report goes as far to say, “Data suggests there may be insufficient supply to meet demand in coming years, as current vintages are released.” Americans and Chinese continue to gulp down vino at ever-quicker rates, as Europe is producing less, driving the wine shortage.

I occasionally enjoy a good glass of wine (it’s almost a requirement living in Northern California) and so long as it’s not harming anyone else, I say go ahead and gulp away if that’s your preference. However, as Mason Tvert so wonderfully drove home during the Amendment 64 campaign in Colorado, marijuana is safer than alcohol.

Substitute good graphical example (Wikipedia)

In economics terminology, I’d say cannabis could serve as a substitute good for wine and alcohol in general, if marijuana was legalized and properly regulated. A substitute good simply means consumption of one good (e.g., Coca-Cola) can be replaced with consumption of another good (Pepsi), if the price of one starts increasing (e.g., because of a serious supply shortage). A pending study mentioned in the NY Times this week reinforces this substitute good concept, finding “increased marijuana use to be a substitute for alcohol use in California.”

Given the woes alcohol has caused over human history, as well as the relative ease of growing cannabis vs. wine, isn’t this wine shortage a great time for both political and social reflection? Bring on the green rush!