No, they would not increase and I'll tell you why.
First of all, at the moment nearly all the 'dealers' don't know what strain of cannabis they are selling. The people who are growing it are just trying to grow the strains that are the most potent. In a similar way to when Alcohol was illegal in the US during prohibition. Because It is illegal it means that their is no real quality control, just grow the strongest stuff in as small amount of space as possible.
But this, when Alcohol is legal it opens up a whole world of choice for the consumer. The consumer doesn't have to settle for the only alcohol available, but they have the choice of something mild, mid, strong.... with bottles that are labelled with how many standard drinks they contain. As well as that there is a lot of education around how to drink responsibly and how to keep track of your BAC.
When cannabis is legal a similar thing happens. Strains are labelled with THC % and also the effects of each strain are communicated.
No longer would people who want to get stoned have to settle for some random 'good weed' without knowing anything about it. And there would be education too about what strains do what as well as other ways of taking weed (such as vaporizing and edibles.).
So the increase in education and product knowledge would more than counter any potential mental health risks.
Make sense?
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