(Crazy HIGH Taxes) Inside California’s Black Market Weed Boom

[Priceless Gems]

Illegal marijuana growers and sellers are making big bucks, while the legal stores make very little, if any money.

Here is an interesting video from Vice Media:
Inside California’s Black Market Weed Boom
https://www.brighteon.com/f031be00-fc56-4842-ae32-c9648ef888fb

(If you enjoy the stuff) How does the economics of modern pot affect you? Do you buy it legally, or at a discount price?

[Poker Player]

As I have commented in the other thread about India, this is something to be expected, which always happens, when taxes are too high. If taxes are too low it may work to raise them a bit, but politicians and their tendency to spend like there is no tomorrow makes them kill the goose that lays the golden eggs by raising taxes too much, and then these things happen, people evade them as they can, the black market is incentivized, etc.

[Zlantann]

Black market sells is fuelled by government policies and tax. Most government view weed as food for criminals hence in other to control its usage they restrict its cultivation and place high tax.

Like in my country where hemp plants can survive in any state, illegal growers will cease that opportunity to flood the market with cheaper weed. These black market operator usually bribe government drug law officials, thereby having the freedom to gain the larger chunk of the weed market.

[Oshosondy]

Illegal marijuana growers in California desert or beyond prefer the illegal way to just evade tax, not only the illegal growers are evading tax, also the buyer are evading tax, what did we expect if tax can be evaded, people will like the way for it is cheaper but the rate the illegal growers are selling will outpace those that are doing it legally. If they are doing it successfully, others will join in the illegal way.



This chart shows how illegal marijuana growers are increasing, they sell it cheap and any of them and their buyers can evade tax and this is very bad.

What I hate most about the video is that the illegal marijuana growers can use chemicals toxic to the environment while growing the plant, I do not know how true this though.

[Flexystar]

Oh my lord, if you just checkout the video then you will see a graph of allowed and prohibited areas in the county. Man almost 70% of it has allowed markings and I’m still not getting it why do they need to be growing it illegally. That’s funny. May be it’s the greed of earning money that always boost or motivate humans to go out of the way and illegal stuff.

The taxes are there to control the over-consumption of the weed. It’s for those who does not really need it since they simply can’t afford it with high taxes.

That’s bad though, they are not able to control market.

[Leviathan.007]

On one side of the story, the use of marijuana is increasing all over the world including California and that's what everyone knows also in the other side of story and regarding California, the Illegal marijuana is increasing even more and this will increase the value of the dealers who evade tax and paper works to do the deals because they can bypass any government tax by using new payment systems such as cryptocurrencies so that's very much expecting to see governments trying to take control over tax to don't lose the source of income from this market.

[Lucius]

(If you enjoy the stuff) How does the economics of modern pot affect you? Do you buy it legally, or at a discount price?

In my country, it is still illegal and I personally have no need to consume such drugs so it does not affect me in any way. Of course, the situation in the US in terms of drugs has always been specific, because the demand for all types of drugs has always been among the largest in the world which has created people like Escobar, El Chapo, Félix Gallardo, Carrillo Fuentes, and many other drug dealers primarily from Colombia and Mexico.

From what I have seen, illegal farms in California are still run mostly by people from Colombia and Mexico because they save on transportation (they are closer to customers) and because the laws are very favorable for them in case they are caught. As long as there is demand, there will be production - and people will always buy where it is cheaper, which means that the black market can always survive if it offers lower prices.

[lumbanrang]

Even though they (legal stores) make little money from selling marijuana due to high taxes, they are doing business legally which is safer and they won't be chased by the police for illegal sales. As for those who sell and grow marijuana illegally, even if they earn a lot, they will not be safe in running their business. They must ensure that the police will not find out where their business is or else their business will be forcibly closed.

[paxmao]

That is quite interesting. My stance on drugs is that is much better to regulate and control than to ban fully and then having a huge social and economic problem that keeps many countries at the mercy of the narcos. I am not happy to know that legalisation can result in a more prolific black market. I am not surprised though that shops and legal sellers make little profit, since, at the end of the day, is simply another crop and not particularly difficult to grow.

[ChiBitCTy]

I love marijuana and it’s one of the earths greatest gifts ever given to us. It’s helped countless lives and even helped save my mothers life (no bullshit), and I’m glad the countries /states have finally started legalizing it, but they are often going about it very wrong. In my state of Illinois there’s a progressive THC tax which is INSANE and it’s exactly what keeps me out of the shops here and buying on the black market or in other states where prices are reasonable. It amazes me how stupid these states are..if you charge $70 for an 8th of weed people aren’t going to buy it from you, simple as that. Great reform is needed!

[Ryker1]

Well, I have this thought. I can't always blame folks who grow marijuana illegally in order to escape the government's absurdly high taxation. Basically, those high taxes is one of the factors that push individuals to conduct illegal and not just those who plant marijuana illegally dodge taxes but also those buyers. However, the rate of illegal marijuana sales in California is increasing, as is the number of sellers, and as long as the demand grows, there will always be manufacture and buying where it is cheaper. The government must take steps to address this issue.