Originally Posted by HeriMarry
As long as it is being taxed, there will be a black market. For instance, cigarettes an shine are still sold on the black market. An since the Marijuana Movement wants to get in bed with the government for legalization an when/if it gets legalized by the feds, that will be a new charge for the undocumented grower, Tax Evasions. Say hello to the ATFC. The war will never end for the free.I only support decriminalization.
The price WILL go up an the government will get richer off our backs. IMO.
I agree, HeriMarry. The Feds were taking it on the chin for a while when California was the first medical state. Their black market had taken a hit because of it. Now, they can have the best of both worlds, control the legal market - and, due to increased costs causing increased prices in the legal market, bring back the black market so that the DEA can get back on its gravy train.
However, money can be made after the first five years of recreational legalization in California, when the corporate cartels will be allowed to buy up the moms and pops. So, I think the moms and pops can still make money as licensees, but it will be tighter margins than they're used to. The real money will come when it's time to sell their business to the cartels - playing one off the other to get the best price. The smart move at that point would be to sell out because the various taxes and fees will only go up moving forward in time, further cutting into profit margins.
At some point, it will no longer be economical to sell legal weed. Dispensaries will close left and right. The black market will then be firmly in control, like it was pre-1996, which is exactly what the government wants.