Legalization and Economics of Cannabis

[Anonymous No.523368]

Hey /biz/
>university student here

I'm going to make a research about economics of cannabis, it's taxation, pricing etc.

>anybody who can share his knowledge?
>any source?

Also General Topic of "Legalization and Economics of Cannabis"

[Anonymous No.523373]

>>523368
I have some anecdotal story for you

BOMBACLAT

[Anonymous No.523375]

Do you mean current or what could happen if there was widespread legalization?

[Anonymous No.523376]

>>523375
I mean both mate, "what happend and what could happen?"

[Anonymous No.523380]

>>523376
If there was widespread legalization, I think you'd see a rapid takeover of the market by tobacco companies since they can use a lot of their existing infrastructure and connections.

[Anonymous No.523401]

>>523368
>>523380

This

as someone who lives in the Netherlands, trust me when I say nobody can be bothered to roll anymore when you can get a pre-rolled hash zuse for 3-4 Euros

[Anonymous No.523405]

>>523373
>Hey /biz/
>>university student here
>I'm going to make a research about economics of cannabis, it's taxation, pricing etc.
>>anybody who can share his knowledge?
>>any source?
>Also General Topic of "Legalization and Economics of Cannabis"

bumba clot
bum cloth
ass rag

[Anonymous No.523428]

>>523368
You should look into how entities with illegal practices do their taxes. If you run a whore house you can deduct whore house expenses from your taxes. However since they started the war on drugs they removed being able to deduct illegal drug related expenses from your taxes. This is currently screwing over marijuana businesses in Washington and Colorado since they have to pay way more taxes since they cannot deduct expenses related to marijuana from their taxes.

[Anonymous No.523440]

>>523428
Thanks for this, it really helped me

[Anonymous No.523490]

>>523368
good shit op, you just reminded me i have some dank bud on my desk right here. im gonna blaze that shit right now!

to contribute:

>420 blaze it faggot
>legalize it
>smoke weed erryday

[Anonymous No.523508]

>>523490
well, have fun anon

[Anonymous No.523676]

>>523368
if anyone wants some dope in Newport Oregon hmu

[Anonymous No.524071]

>>523368
I'm wondering how competitive the selling and growing scene is right now. Growing your own weed doesn't take years of experience right?
If the market is highly competitive then legalization would likely lower the weed prices as the tobacco industry moves in to try and capture market shares. The legalization should also remove barriers to entering that market and make it more competitive. The lower price would obviously not be true if the government decides to tax the shit out of weed.
>Economics Undergrad doing research on new firm dynamics

[Anonymous No.524075]

>>524071
Whatever price reduction there is wouldn't last long since marijuana tax would be the go to for politicians looking to add revenue for ____ state project. It'll just end up like cigarettes being taxed to whatever the fuck in blue states and being cheap in red states (after the decades it will take to make shitholes like Alabama to legalize it)

[Anonymous No.524079]

>>523368
>I'm gonna write a report about something I know nothing about
Journalism

[Anonymous No.524100]

>>524075
It isn't guaranteed that the tax would raise the price of marijuana. States don't arbitrarily set high taxes on goods. They're trying to maximize profits from the tax, and after a certain level of taxation they're profits will decrease due to decreased consumption. They would also have to worry about having higher taxes than their neighbors and losing tax profits because people go to the next state to buy weed.
If you consider the supply curve of marijuana when it gets legalized we should expect it to shift right. Growers currently ask higher prices because getting caught means going to jail. Legal weed means less risk to growers and distributors, so they'll be willing to sell at a lower price.
We can't really be certain of what the price would do without more data. Maybe we could use prohibition prices of alcohol as a model?

[Anonymous No.524151]

>>523380
IMO the current state of the beer industry in the US would be comparable to how legal weed would turn out. BT would have a good market share, but smaller growers selling to local markets would have a place. Stoners are snobbish when it comes to weed. Like beer snobs they won't buy mass produced product that is cheap. They will spend the money to buy exotic strains from local growers.

[Anonymous No.524166]

Medical grower here, ask me anything.

[Anonymous No.524177]

>>524100
Or we could look at Colorado where the price of legal weed has skyrocketed to be higher than the price in most red states while medical and the black market remain significantly cheaper like they were prior to legalization.

[Anonymous No.524193]

>>524100
Thatd be great if states thought like that. Instead, in WA, recreational implementation is overseen by the liquor control board (probably long bought and paid for by big alcohol) and there is a 3 tiered system of growers, processors, and retailers who cannot be owned by the same people and each step has to pay 25% excise tax.


It actually seems possible this could just be incompetence, but is likely worse.

[Anonymous No.524199]

>>524193
>each step has to pay 25% excise tax.
jesus fuck, did they not do any economic analysis at all before pulling ridiculous tax rates out of their ass? thats fucking retarded, no one is gonna pay that especially when there's already a black market in place so anyone can buy cheap weed all the time anyway

[Anonymous No.524449]

I have an idea
Artisan blunts.
You know how they have spics rolling top notch cigars in Midtown?
Have someone do the same exact thing at dispensaries, but weed.

[Anonymous No.524486]

>>524151
damn, that would actually be kinda cool

[Anonymous No.524493]

>>524166
is it possible to grow 1 or 2 plants in an apartment?

[Anonymous No.524530]

>>524493
not him but yeah you can, you're just gonna have a smelly as fuck apartment for 2-3 weeks while the plant is flowering

[Anonymous No.524535]

>>524151
wine is more analogous, especially in the argiculture side of it

[Anonymous No.524577]

>>524177
I don't understand this. Isn't legalization suppose to reduce the price of it since now you don't need to pay the "illegal tax"?

[Anonymous No.524594]

>>524166
yo that is some dank ass kush faggot

[Anonymous No.524595]

>>524493
Yes, but you would probably get caught because of the smell.

[Anonymous No.524724]

>>523368

Why are you faggots so obsessed with that drug?

[Anonymous No.525016]

>>524177
I'm talking about long run prices not short run prices. In the short run supply has grown much faster than demand, but in the long run when growers have more time to increase their production size and more growers have an opportunity to get in on the game we should see prices fall.

[Vail !SHIZUNE.mo No.525093]

>>523368
Cannabis isn't a special snowflake. It's a commodity in a slowly opening market. Stoners have negligible market influence because they control no capital or authoritative positions from which they're willing to stick their necks out.

Look into the market reactions surrounding alcohol in the early 1930's.

[Anonymous No.525124]

Don't know if you guys are checking out /pol/ or not, but Congress is about to have a hearing on the classification of marijuana as a heinously dangerous drug. If this passes, it's one step closer to full legalization.

What I'd like to do is get in on the company that's going to take over distribution the quickest - I'm thinking it's Medbox, already a highly established company in California and beyond, with a stock valued around $10 right now. If they maintain and grow their infrastructure, they could easily compete with the cigarette companies that are inevitably going to try to get in on it.

[Anonymous No.525141]

Edibles.
How are they where it has been legalized?

Do stores follow the near-perfect method of
Decarboxylate --> One week watercure --> infuse into oil for ~8 - 12 hours --> oil into baked good at a temperature no greater than 280 F?

[Anonymous No.525150]

CEO of failed cannabusiness startup here....

I left my sysadmin job to start a merchant acquiring business based on cannabusiness in particular.

I blew my load to quickly and ran out of runway, we sold the company for a paltry $45k to a large industry investment group. They took our 12 merchants and are proceeding with lobbying based on our business model for wider acceptance of credit cards at medical/recreational dispensaries for enhanced tracking of sales and demography.

There is a ton of vertical integration going on lately with the recent ruling of primary growing and primary dispensing business being allowed to operate with one another and specialize. "Big Weed" will be a thing very shortly if you don't already consider companies like ArcView being that. The market will slump once these groups decide to impose more restricting legislation that makes competition impossible.

I'd stay out of the business if you aren't already in it, the ship has sort of sailed. The only innovation left will be in complementary products.

[Anonymous No.526737]

>>525150
Hi, could you tell me more about your business? What was it about, where are you from and what was your investment in to the business in total?
Why would you consider a cannabis business a ship that has already sailed?

[Anonymous No.526788]

>>524577
> Isn't legalization suppose to reduce the price of it since now you don't need to pay the "illegal tax"?
In the long run, yes. In the short term, with only a few US states having it legalized, no.

The cartels still dominate 99% of the drug trade (not counting pharmaceuticals obv).

[Anonymous No.526897]

cannabiscoin.net/

https://twitter.com/CannabisCoins

CANN aka Cannabiscoin - First cryptocurrency to be in use for the purchasing of marijuana. Just had a big debut in AZ, now moving onward to CO.

Easily the largest up and coming $ maker in the weed industry. Look into it and research for yourself, and you'll son wanna buy some coins because it's trading for FAR below it's pegged price at the moment.

[Anonymous No.527216]

>>524449
they already do that, except its caviar joints rolled with top notch weed and hash then dipped in hash oil.

[Anonymous No.527266]

>>527216
are you being facetious?
I want to visit this place