How Legal Marijuna is Helping the Black Market

[Working Poor]

This article touches on how over regulation and red tape helps the Black Market. To me there is still no real legalization of marijuana. It should be cheaper than the black market prices IMO this market is being fiercely manipulated and still favors the black market.

Natalie Fertig is a writer in Washington, D.C., covering cannabis and politics.

When the new marijuana shop opened up just down the street from his own marijuana shop, Greg Meguerian, owner of The Reefinery in Los Angeles, kept an eye on it. When that shop stayed open past the legal closing time of 10 p.m. and sold customers over a quarter-pound of cannabis at once, four times more than the legal limit, Meguerian knew he wasn’t competing with a licensed dispensary.

“It’s so shady, if you look at it,” Meguerian said. “It looks like a shady crack house.”

The 15 Spot—as the tarp sign hung in front doesn’t appear on Los Angeles’ list of authorized retail businesses. Meguerian and his lawyer reported the dispensary, but it’s still open—and Meguerian is paying a price. He said his sales are down noticeably since his illicit competitor moved in. Calls to the 15 Spot went unanswered because its phone is disconnected.

“I told the state, ‘If I lose 20 percent, you just lost 20 percent in taxes,’” he told POLITICO Magazine. “You feel like your words are falling on deaf ears.”

What’s happening to Meguerian is a window into one widespread side effect of marijuana legalization in the U.S.: In many cases it has fueled, rather than eliminated, the black market. In Los Angeles, unlicensed businesses greatly outnumber legal ones; in Oregon, a glut of low-priced legal cannabis has pushed illegal growers to export their goods across borders into other states where it’s still illegal, leaving law enforcement overwhelmed. Three years after Massachusetts voters approved ful legalization of marijuana, most of the cannabis economy consists of unlicensed “private clubs,” home growing operations and illicit sales.

[dannno]

This article is missing a lot of context.

In California, it used to be legal for anybody to start a medical co-operative (often called a dispensary) where many patients get together and join so that a handful of growers can legally grow up to 6 plants at a time in their name as "caregivers". In the mean time, you could still grow your own 6 plants at home. Some doctors even gave prescriptions to patients so that they could grow up to 99 plants at home in a 100 square foot area.

In theory, you were only supposed to join one dispensary because if you joined multiple then there would be multiple growers out there who could grow up to 6 plants in your name. But there was no enforcement. When you signed up for a dispensary I think their may have been some fine print that makes them your primary caregiver. So in theory you might be able to join a dispensary, buy herb from them, decide you don't like them anymore and go to another dispensary and signup with them. But what if you like your first one better? In theory, you couldn't go back because they were no longer your primary caregiver. But in practice, unless you called up and cancelled with them (I highly doubt that ever happened once in history), they still had your recommendation, and they could still grow six plants for you.

So with all of this legal growing on top of what may have been coming from the black market, there would often be an excessive supply of medical cannabis. Plenty of people who could have gotten a prescription (anybody can get a prescription as cannabis treats so many ailments, everybody is bound to suffer from one and can get cannabis under the law) - but who did not get a prescription (they cost $), would just buy off the black market. Or they would have their friend who had a medical recommendation buy from a dispensary for them. That was still plenty of people.

Most of the black market cannabis was coming from the medical cannabis growers who grew too much and couldn't unload it all on the medical market. So it went to the black market. The biggest difference between the black market and the medical market was the black market was (still) unreliable. Drug dealers have always been unreliable. The medical market was a business. They had standard operating hours and many would even come deliver it to your house within the hour.

With legalization, one bad thing that happened is that all of those rules got thrown out the window and the medical industry got screwed. That's because now growers have to be licensed by the state. You can still grow your own, up to 6 plants or 99 plants depending on your recommendation, but only very large growers have enough money to buy enough property to go through all of the licensing, local red-tape, etc, in order to produce for market.. and still... even companies that have put in hundreds of thousands of dollars might end up having to grow strawberries instead because they weren't able to jump through all of the hoops.

Police used to bust up drugs operations because they were told that drugs were "hurting society" or "hurting the children". It was a "public safety" issue and drugs were "very dangerous". So they were willing to put lives on the line and use resources to stop them.

So why are police busting up cannabis growing operations now? They aren't hurting society, hurting the children, they aren't public safety issues and we know now cannabis is not very dangerous. The reason police bust them up now is because the legal growers who jump through all the hoops and pay all the taxes complain to the government that it "isn't fair".

The question is, how long are police going to use police resources and potentially put lives on the line to maintain "fairness"?

A lot of the money that is being used to enforce the new laws is coming from the taxes that the legal growers pay. It doesn't make any sense.

As much as it sucks that small and medium growers are struggling to find a footing while a few big players are succeeding, in the end it will be a better system. That is because it is in nobody's interest to keep the system afloat except the few that are benefiting from legally growing a ton of herb. Eventually I think they will just stop enforcing it, and change the laws.

In the mean time, herb is as cheap as ever. The quality is suffering somewhat, though. I can't wait for more changes so that finally a small to medium growing operation can operate and serve the general public not unlike a craft brewery. But for that to happen, changes needed to be made, legalization needed to happen.

[Working Poor]

In the mean time, herb is as cheap as ever.

I don't think it is cheap at all. $20 a gram is not cheap IMO. $20 an oz to me is a really decent price. Also I haven't seen any really good pot worth buying for over 10 years. They keep saying it is stronger than it used to be I don't think so. The last time I smoked something someone called good stuff I had a mild buzz then got the munchies and passed out that is not what I want in a marijuana experience.

[Dr.3D]

Should be able to buy it at the farmers market, the same as tomatoes, sweet corn and cucumbers.

[dannno]

I don't think it is cheap at all. $20 a gram is not cheap IMO. $20 an oz to me is a really decent price. Also I haven't seen any really good pot worth buying for over 10 years. They keep saying it is stronger than it used to be I don't think so. The last time I smoked something someone called good stuff I had a mild buzz then got the munchies and passed out that is not what I want in a marijuana experience.

$20/gram is too expensive, that is what it has been for good herb since I started buying herb about 20 years ago, if you buy by the gram.

On the other hand, you can't even grow good indoor for $20/ounce. An ounce is 14 grams, so that is $1.42/gram.

Yet with outdoor, I think you could definitely get the costs down into that range. But does it need to be that low? A good ounce would last me almost 2 months probably. $20 for 2 months of medicine is insanely low.

I recently paid $55 for a quarter oz, that is $7.85/gram. It is REALLY good. That quarter ounce stinks up my entire room really bad (aka good). It was on sale, but I've also bought ounces recently for as low as $100-$120. It was outdoor, and sometimes it was pretty good, but never great.

[tod evans]

Should be able to buy it at the farmers market, the same as tomatoes, sweet corn and cucumbers.

'75 outdoor market in Portland, weed, shrooms and 25......

Today.............Not so much.

[dannno]

They keep saying it is stronger than it used to be I don't think so. The last time I smoked something someone called good stuff I had a mild buzz then got the munchies and passed out that is not what I want in a marijuana experience.

The good stuff is out there.. I can grow it if somebody wants to get me the place to grow and all the licenses. It sounds like you got a mediocre indica.

I can even turn it into this:



^This is what you want to dab with. They call it "sauce", but a lot of sauce does not look that good at all.. This is the ultimate in clean flavor, no smoke and easy to control how high you get.

Here is some not so good sauce:

[Working Poor]

The good stuff is out there.. I can grow it if somebody wants to get me the place to grow and all the licenses. It sounds like you got a mediocre indica.

I could grow it too. But it is not legal where I am so I am not going to risk jail time over it. I just don't think there is great stuff out there. I smoked some stuff someone brought back from a legal Colorado store that was supposed to be primo. It was mediocre. It think there is too much cloning going on with growers and there is not much good seed stock any more. I started smoking pot 50 years ago the good stuff was everywhere and full of seeds that everyone would just throw away. I wonder where the good seeds are. I used to smoke stuff that 2 hits would keep you stoned all day.

On the other hand, you can't even grow good indoor for $20/ounce. An ounce is 14 grams, so that is $1.42/gram.

I hate to tell you this but, there is 28.34 grams in an ounce.

[pcosmar]

Should be able to buy it at the farmers market, the same as tomatoes, sweet corn and cucumbers.

True enough..

But I have watch prices fall in the past few years,, in a legal state.

$20 a gram is available,, but so are nice grams at $5.

I got my months supply,, Ounce and a 1/4,, for less than sixty bucks.. Less than $2 a Gram..

4 7gr packs,,bud shake,(RYO) $8 each.. and 2 different 3.5 gr packs of nice Bud. $10 each..


and that is after the 37% "Don't Phuck with Me" Tax.


The store has a nice selection from Budget to High End..

[pcosmar]

'75 outdoor market in Portland, weed, shrooms and 25......

Today.............Not so much.

I sold ceramic Pipes in Portland parks... a traveling Bong salesman..

[dannno]

I could grow it too. But it is not legal where I am so I am not going to risk jail time over it. I just don't think there is great stuff out there. I smoked some stuff someone brought back from a legal Colorado store that was supposed to be primo. It was mediocre. It think there is too much cloning going on with growers and there is not much good seed stock any more. I started smoking pot 50 years ago the good stuff was everywhere and full of seeds that everyone would just throw away. I wonder where the good seeds are. I used to smoke stuff that 2 hits would keep you stoned all day.



I hate to tell you this but, there is 28.34 grams in an ounce.

Ya, I meant 28 grams (14 grams is a half oz).

So that means you want to buy herb for $0.71 per gram..

Trust me, there is good stuff out there. It just isn't incredibly common as it should be. Dispensaries are really hit and miss. If you want to spend $60 or $65 on an 8th you can increase your odds by a bit, but I just spent $27 on an 8th and it is a solid 8.5-9 at least. It's all hit and miss.

Could you stick a nug of the stuff you got from colorado to the bottom of your finger and let it hang there in mid air?

[Working Poor]

Could you stick a nug of the stuff you got from colorado to the bottom of your finger and let it hang there in mid air?

I just smoked it I didn't try any parlor tricks with it.

[pcosmar]

I sold ceramic Pipes in Portland parks... a traveling Bong salesman..

The Bear is 30 years old.. the prototype. We worked in a small ceramic shop.

sold a few, and others out of bike packs before we went to Key West.

Favorite Store.
https://potguide.com/washington/mari...w/420-holiday/
https://www.allbud.com/dispensaries/...ew/420-holiday

Menu prices are never current..

But $5 and $6 grams are available,,as well as RYO Bud Shake.. at $8 a Quarter, (7 gr)

Perfect for my Dugout.

[CoastieInColorado]

True enough..

But I have watch prices fall in the past few years,, in a legal state.

$20 a gram is available,, but so are nice grams at $5.

I got my months supply,, Ounce and a 1/4,, for less than sixty bucks.. Less than $2 a Gram..

4 7gr packs,,bud shake,(RYO) $8 each.. and 2 different 3.5 gr packs of nice Bud. $10 each..


and that is after the 37% "Don't Phuck with Me" Tax.


The store has a nice selection from Budget to High End..

Colorado has similar and lower prices for recreational now, some medical stores have it for even cheaper. Hell, you can get an "extended plant count" on your medical card here and grow 99 plants, purchase up to 2 POUNDS of flower OR concentrates, per day....