- California’s new ‘War on Drugs’ Operations Upset LEGAL Growers
The Seed Investor just published an report criticizing California for its new “War on Drugs” – targeting the cannabis black marketplace. We pointed to the full failure of the general War on Drugs as proof that this is regressive considering and public policy.
For cannabis investors who assume that this has no influence on their investments in legal cannabis, assume once again. Legally licensed cannabis cultivators in Northern California say that this heavy-handed method from law enforcement is “causing important concern”.
Why does the black marketplace have a 60% marketplace share? Since the State more than-taxes and more than-regulates the legal cannabis business, and since only a tiny more than 10% of county governments completely let cannabis commerce.
The only point much more that the State could do to market a cannabis black marketplace would be to essentially plant the crops for black marketplace growers.
It is not as if California has no decision. Colorado has currently shown California the appropriate way to legalize cannabis: moderate taxation, light regulation, and an business-friendly climate – exactly where regional governments cannot shut out a legal business.
The Capitalist Resolution.
Colorado’s black marketplace is significantly less than half the size of California’s (proportionately). And it is nonetheless shrinking – since the legal cannabis business can offer shoppers with licensed and inspected items at competitive rates.
The State is investing huge tax dollars in this new War on Drugs on California’s cannabis black marketplace. What will this achieve? Absolutely nothing.
It will not force shoppers to invest in more than-priced legal cannabis items.
It will not cease the black marketplace from continuing to cultivate cannabis. New growers will sprout up to replace these “eradicated”. That is a single of the lessons from 4 decades of failed policy in the original War on Drugs.
But California’s government continues to wallow in failed considering.
A regional farmer told Cannabis Now that 40 police cars lately broke into 3 groups and wound their way via Spy Rock, California and the surrounding communities. The licensed farmer claimed National Guard choppers had been only 20 feet above the treeline on his farm and police on the roads scared off his water truck.
Free of charge enterprise will do the rest.