Marijuana News Today: Black Market Continues to Harm Marijuana Industry, Deals Abound on Pot Stock M
- Thread starter gb123
- Start date
The marijuana news today is a flurry of activity, with many top pot stocks making moves while we examine the thriving marijuana black market in spite of legalization.
First, we’ll hop over to Michigan, which serves as a microcosm of the larger marijuana black market issue. Despite recreational marijuana legalization in that state, there remains a healthy—some would say booming—black market for pot.
This is also true in Canada and in many U.S. states, including California. Marijuana legalization was supposed to take money out of the hands of black market dealers and put it in the hands of legitimate businesses (not to mention government coffers via taxation)—so what gives?
Frankly, it’s a problem of the government’s own design.
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In Michigan, for instance, fees, licensing issues, shifting regulations, and all manner of other government impositions have made legal pot more expensive and, at times, less available than illegal pot. (Source: “Why marijuana sales on the black market are blooming in Michigan after legalization,” Detroit Metro Times, February 26, 2019.)
This is obviously the opposite of what marijuana legalization was supposed to accomplish.
In some cases, the introduction of legal pot has proved a boon to the illicit market due to cops’ overall laxer position on illegal weed. It has also provided a competitor that drives down black market prices, making the black market more attractive to consumers.
After all, why buy more expensive legal weed if you can get cheaper products and have little to fear from the police?
Again, this is not contained in Michigan. Canada and California are two far larger markets that are encountering much of the same problem. Both have high taxes, high regulatory standards, and high fees that have pushed some back toward the black market despite having a legal alternative.
While you don’t want the government asleep at the wheel as the legal marijuana industry develops and matures, you also don’t want it stifling growth through onerous regulations.
I’m as happy as the next person that governments are able to eke out more revenue from the pot trade and put it toward the collective good, but by overtaxing and over-regulating, we’re seeing legal sales underperform. At the end of the day, that’s only going to decrease the overall tax revenue, help fuel the illicit trade, and also hurt pot stocks.
After all, marijuana stocks’ fortunes are tied to how much pot they can sell. If people are turning away from the legal market, that means a whole lot of lost revenue. That will impact the next quarterly report and harm marijuana stocks moving forward.
There are simple enough solutions. These taxes need not be eliminated, but they do need to be sensible. As the legal cannabis industry grows, we’ll hopefully see the illicit trade diminish as governments find the sweet spot.
First, we’ll hop over to Michigan, which serves as a microcosm of the larger marijuana black market issue. Despite recreational marijuana legalization in that state, there remains a healthy—some would say booming—black market for pot.
This is also true in Canada and in many U.S. states, including California. Marijuana legalization was supposed to take money out of the hands of black market dealers and put it in the hands of legitimate businesses (not to mention government coffers via taxation)—so what gives?
Frankly, it’s a problem of the government’s own design.
Advertisement
In Michigan, for instance, fees, licensing issues, shifting regulations, and all manner of other government impositions have made legal pot more expensive and, at times, less available than illegal pot. (Source: “Why marijuana sales on the black market are blooming in Michigan after legalization,” Detroit Metro Times, February 26, 2019.)
This is obviously the opposite of what marijuana legalization was supposed to accomplish.
In some cases, the introduction of legal pot has proved a boon to the illicit market due to cops’ overall laxer position on illegal weed. It has also provided a competitor that drives down black market prices, making the black market more attractive to consumers.
After all, why buy more expensive legal weed if you can get cheaper products and have little to fear from the police?
Again, this is not contained in Michigan. Canada and California are two far larger markets that are encountering much of the same problem. Both have high taxes, high regulatory standards, and high fees that have pushed some back toward the black market despite having a legal alternative.
While you don’t want the government asleep at the wheel as the legal marijuana industry develops and matures, you also don’t want it stifling growth through onerous regulations.
I’m as happy as the next person that governments are able to eke out more revenue from the pot trade and put it toward the collective good, but by overtaxing and over-regulating, we’re seeing legal sales underperform. At the end of the day, that’s only going to decrease the overall tax revenue, help fuel the illicit trade, and also hurt pot stocks.
After all, marijuana stocks’ fortunes are tied to how much pot they can sell. If people are turning away from the legal market, that means a whole lot of lost revenue. That will impact the next quarterly report and harm marijuana stocks moving forward.
There are simple enough solutions. These taxes need not be eliminated, but they do need to be sensible. As the legal cannabis industry grows, we’ll hopefully see the illicit trade diminish as governments find the sweet spot.
The Hippy
Well-Known Member
Of course they're failure in sales could have nothing to do with the way they have been busting people since the 60's could it????????????
This just shows the complete ignorance on the part of these assholes who thought legalization up. Grab the money. Oh not working the way you planned.....fuck you maggot boy groper!!!!!!!!!!!!!
Imagine kicking the dog it's whole life and wondering why it doesn't like you?
These people are the most stupid jerks on the panet.
Ram a cigarette in a guys eye then ask for a kiss.
If trudys bunk schwagg was free I wouldn't want any still!
I know who my REAL friends are.
HOW MUCH MONEY DID THEY MAKE ON FINING PEOPLE FOR CANNABIS BUST SINCE THE 60'S???????????
HOW MUCH PROPERTY WAS STOLEN BY MAGGOT BOYS DAD AND HIS PREDECESSORS.
Fuck you trudy and your rich buddies. Go to HELL you shit pile.
This just shows the complete ignorance on the part of these assholes who thought legalization up. Grab the money. Oh not working the way you planned.....fuck you maggot boy groper!!!!!!!!!!!!!
Imagine kicking the dog it's whole life and wondering why it doesn't like you?
These people are the most stupid jerks on the panet.
Ram a cigarette in a guys eye then ask for a kiss.
If trudys bunk schwagg was free I wouldn't want any still!
I know who my REAL friends are.
HOW MUCH MONEY DID THEY MAKE ON FINING PEOPLE FOR CANNABIS BUST SINCE THE 60'S???????????
HOW MUCH PROPERTY WAS STOLEN BY MAGGOT BOYS DAD AND HIS PREDECESSORS.
Fuck you trudy and your rich buddies. Go to HELL you shit pile.
Novabudd
Well-Known Member
Sometimes a lil pussy can cost you a lot o money
as long as everyone is happy and smiling...no harm no foul..Sometimes a lil pussy can cost you a lot o money
Egzoset
Well-Known Member
Hummm...
Weasel calculator sounds more in line with observed reality, it's the actions that matter in the end and his are synonymous of VILIFICATION...
As UN's 62nd CND gets closer i'm increasingly preoccupied that mass-media ain't just as silly as it looks neither. I wonder what the late TV news will care to report in a couple weeks.
Good day, have fun!!
They can pretend the same as an excuse but i wouldn't buy that, MiniPET/SuperPÉTeux *WAS* an actor once, after all:
As UN's 62nd CND gets closer i'm increasingly preoccupied that mass-media ain't just as silly as it looks neither. I wonder what the late TV news will care to report in a couple weeks.
Good day, have fun!!