Replies

How is it that when you increase competition, and remove the black market element from it, that the price continues to remain high and appear practically collusive? Because the majority of the trade continues to be supplied by the black market, namely, large criminal gangs that illegally grow Marijuana.

It is a contradiction in terms to “legalize MJ” and yet not allow the growth, distribution and sale of it. Nevertheless the MMJ bill enabled it so that some places doing business by some name can sell MMJ to some people who got a permit from some doctors. Very arbitrary and convoluted.

So now Prop 19 comes along to allow MJ to enter the full stream of commerce, and solely for the purpose of raising taxes off it. Yet it has virtually no provisions for the growth of MJ, the distribution of MJ, and/or the licensing of places that may sell it. This, the bill leaves to the municipalities with the exception that anyone can grow MJ plants on a 25 sq ft parcel of their own land or in their own closets.

That will not have any meaningful impact on price because it is not likely that people are going to start growing MJ let alone grow it successfully and in quantities that will rival commercial black market growers and smugglers. Furthermore, the first person to receive a permit from his/her city to grow large quantities of MJ will likely be the target of either the Federal Government, or more likely, a hit man from one of the large gangs that currently control the wholesale MJ trade.

I don’t think Prop 19 is the right bill. The motives are wrong, and offers a Machiavellian proposition to the people who want MJ decriminalized. Does the state need money? Yes. Does that justify allowing criminal gangs to sell their wares in 7-11 so we can tax it? No.

I don’t think this bill will reduce the price of marijuana. I do not smoke it, but have it on pretty good authority that the price of Marijuana has remained steady since the passage of the Medical Marijuana bill.

Well, I have it on pretty good authority that the price of marijuana in the "co-ops" has actually been higher than one could get on the black market. Why? Presumably because the co-op supply has the added benefit of being legal, which makes it a more attractive option for those with prescriptions. Furthermore, where only one co-op exists in a town, they have a monopoly, and thus can charge what they want. I also have it on good authority that when a second co-op in a town not far from here was allowed to open, the price of the MJ dropped $100/oz in the first co-op due to the competition. Got to love the free market, eh?

The idea that this proposition will raise tax revenue significantly for the state is, of course, asinine. With the existing black market and the ease with which one can grow pot at home, there will be no incentive to report crops for tax purposes, unless one is a large scale grower. Of course, very few will be stupid enough to be large scale growers while pot remains illegal on a federal level, except those black marketers who are already doing so. There will also be very little incentive for buyers to go to a pot store (which, again, will tend to few and far between as pot is still illegal federally - occasionally co-ops get raided by the feds now) because the taxes would raise the price as opposed to that which one could buy from his neighbor at half the price.

Now, having said that, it is also ridiculous to claim that legalizing pot will increase drug cartel market share and associated crime. That is exactly the opposite of what will most likely happen. In the real world, the sudden, common availability of the product will dry up the cartel market better than any DEA operation could ever do. Pot is not like cocaine or heroin, where it requires a lot of processing. Quite literally, you plant it, keep it alive, harvest it and smoke it. Period. Anyone can do it. In their closets even. Keeping it illegal is what gives the cartels their market share. If we use the currently existing co-ops as an example, the pot available there is grown solely by local people who also possess prescriptions or licenses to grow. That is the only way for it to be legal (statewide). The idea that the co-ops now sell cartel pot is asinine also. The co-ops are the cartels competition.

There may be legitimate reasons for concern about full legalization, but most of what I see posted here on FR is nonsense.