Big Marijuana fights legalization efforts

[Torie]

It is as true as when Adam Smith first penned out the concept in Wealth of Nations. Commercial actors are always motivated to limit competition. This is but the latest iteration. And as he noted, the most efficacious way to effect such special interest gain, at the cost of the polis at large, is through the use of law:

"To widen the market and to narrow the competition, is always the interest of the dealers…The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it."

The Wealth Of Nations, Book IV Chapter VIII, p. 145, paras. c29-30.

I bolded his most excellent advice as to the attitude to have when commercial actors agitate in the public square for restrictions on trade. I at once love commerce, that driver of wealth creation, and deeply distrust it. The ying and the yang.

[Link]

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Great article.  It shows you how cynical things have gotten in America.  Regardless of political persuasion special interests wreck this country.

[barfbag]

Dealers don't want marijuana legalized because they'd lose their business. Marijuana would also be much more expensive.

[True Federalist (진정한 연방 주의자)]

Dealers don't want marijuana legalized because they'd lose their business. Marijuana would also be much more expensive.

Actually legalization would likely increase supply much more than demand.  Not only would the price come down, but so would the profit margin.  In addition, if the tax on legal marijuana is sensibly set (sensible from the viewpoint of being high enough to raise revenue but low enough to discourage evasion) a good chunk of the profit is likely to absorbed by the government.

[barfbag]

Dealers don't want marijuana legalized because they'd lose their business. Marijuana would also be much more expensive.

Actually legalization would likely increase supply much more than demand.  Not only would the price come down, but so would the profit margin.  In addition, if the tax on legal marijuana is sensibly set (sensible from the viewpoint of being high enough to raise revenue but low enough to discourage evasion) a good chunk of the profit is likely to absorbed by the government.

Yes but I think our government would make sure prices stay high.

[ajc0918]

I hope Florida gets a medical marijuana initiative on the ballot in 2014.

http://www.unitedforcare.org

[tik 🪀✨]

The medical marijuana industry is giving a great lesson in the inherent imperfections of the free market, sure to be overlooked by pot smoking small-l libertarians. You cannot separate the idea of a perfectly free market that theoretically fixes its own mistakes with its actors, being imperfect humans, who are driven to corrupt the market for potential gain and/or security. There is a delicate balancing act that needs to take place between business and its lobbyists with government and the public good, or greed will always win.

Anyway, it's a strange situation. If I were a manufacturer in the medical marijuana industry, I'd be keen to expand into a much larger market, and I'd buy out or contract with underground producers who are keen and not too weird. Well, I'd like to think I would.

[Cory]

Yes but I think our government would make sure prices stay high.

In states where it is legal the prices are much lower for much better quality. Five Dollars a gram for good kill weed.

[bgwah]

Yeah, they threw a hissy fit here last year.

Fortunately their campaign did not amount to much once it was on the ballot.

[○∙◄☻¥tπ[╪AV┼cVê└]

Nothing new. Prop. 19 did worse in Humboldt county than statewide.

http://www.sos.ca.gov/elections/sov/2010-general/maps/prop-19.htm

[Small Business Owner of Any Repute]

Dealers don't want marijuana legalized because they'd lose their business. Marijuana would also be much more expensive.

Actually legalization would likely increase supply much more than demand.  Not only would the price come down, but so would the profit margin.  In addition, if the tax on legal marijuana is sensibly set (sensible from the viewpoint of being high enough to raise revenue but low enough to discourage evasion) a good chunk of the profit is likely to absorbed by the government.

The government can tax it all it wants, but the second full legalization comes, the whole dispensary system starts to fall apart. Weed is a weed. The true cost to grow it in an environment where it's legal is going to be incredibly low.

[True Federalist (진정한 연방 주의자)]

Dealers don't want marijuana legalized because they'd lose their business. Marijuana would also be much more expensive.

Actually legalization would likely increase supply much more than demand.  Not only would the price come down, but so would the profit margin.  In addition, if the tax on legal marijuana is sensibly set (sensible from the viewpoint of being high enough to raise revenue but low enough to discourage evasion) a good chunk of the profit is likely to absorbed by the government.

The government can tax it all it wants, but the second full legalization comes, the whole dispensary system starts to fall apart. Weed is a weed. The true cost to grow it in an environment where it's legal is going to be incredibly low.

Which of course is why so many people grow their own tobacco, brew their own beer, and distill their own whiskey.

[barfbag]

What hand do you all think Phillip Morris will play in this? They're firmly against it because of the negative effect legalization could have on the tobacco industry and we shouldn't underestimate their ability to manipulate politicians.

[traininthedistance]

Dealers don't want marijuana legalized because they'd lose their business. Marijuana would also be much more expensive.

Actually legalization would likely increase supply much more than demand.  Not only would the price come down, but so would the profit margin.  In addition, if the tax on legal marijuana is sensibly set (sensible from the viewpoint of being high enough to raise revenue but low enough to discourage evasion) a good chunk of the profit is likely to absorbed by the government.

The government can tax it all it wants, but the second full legalization comes, the whole dispensary system starts to fall apart. Weed is a weed. The true cost to grow it in an environment where it's legal is going to be incredibly low.

Which of course is why so many people grow their own tobacco, brew their own beer, and distill their own whiskey.

Homebrewing is a decently popular hobby.

Distillation is a good deal more complex, requiring more specialized and expensive equipment, and if you want the product to be good, rather than just moonshine, you also need to invest in barrels and, then, wait years for it to mature.

[True Federalist (진정한 연방 주의자)]

Yeah, homebrewing is a hobby, but if it accounts for even one hundredth of the beer that is consumed I'll be surprised.