Maybe sometime in the nearby future, we will all wake up to a new reality – one that is similar to how the United States used to look like, back during the years of 1850-1942. A reality where you could walk into your local pharmacy pick up some marijuana and smoke it freely.
No rules, no restrictions, and no one confining you to what medication you may or may not take to help with your medical condition.
Sounds like a dream come true right? Sure, for those of us who have medical conditions it would mean accessible cannabis and less reliance on pharmaceutical poison. For those who simply smoke marijuana to get high, it would mean that you could get high AF.
But in reality, would it be the best thing for the overall economy and especially the end consumer. Not necessarily and here’s why…
High Prices Supposedly Means Higher Quality Weed.
To grow quality marijuana, you need professionals that understand what they are doing. Otherwise, you are just smoking something that is called Mexican Schwagg – mostly seeds and stems. Quality flowers have trichomes, and to reach perfect trichomes, you need the right growing conditions and the right labor. Professionals that have knowledge of the plant know how to grow and to harvest correctly.
U.S. Labor isn’t cheap. Sure we’ve got some of the best minds in the world. Professionals that could take this industry to the next level. But that doesn’t come at any price. Unless we are thinking of turning the U.S. marijuana labor market into some third-world-micro-economy that pays a Dollar a day.
To produce a high-quality product, you need resources – and that costs money. By reducing the price of weed, you’d be cutting into costs forcing most companies to cut back on whatever possible. The first thing would be labor. The second would be the quality of the weed.
Marijuana Tax Could Save the Economy
This is a difficult one to calculate, but analysts are still questioning the effective market price that would allow the economy to maximize its revenue from marijuana sales. Does selling lots of cheap marijuana generate more tax revenue than current sales at today’s prices. If prices were allowed to fall to their free-market level, it could have a devastating impact on the economic aspect.
In any healthy economy, the objective is to find the right price, the market equilibrium. But if that price is too low that it starts to effect the economy in a negative way, then governments are expected to jump in and help the situation, using different monetary methods such as price capping.
Sure the laws of supply and demand are supposed to determine the most effective price, but in reality, it doesn’t always work like that. This leads us to ask whether or not it is cost effective for weed to be at such a low price.
The Black Market Would Rip the Bud Apart
If the price of pot were to decrease to such a low price, then the black market would have to adapt. C’mon, drug traffickers are not going to give up on business, and there will always be buyers for cheaper drugs. This means that they’d have to reduce costs to maximize their margin of profit.
The question is where would they initially cut back on? History has shown us that as a business you’d be most inclined to cut back on labor, but if that doesn’t work, then you have to cut back on the quality of your product. Under this assumption a new black market would probably emerge selling a totally different degraded product.
Stoners would go on a Frenzy
The long-term implications of marijuana are still not clear. We are only now just starting to understand the plant’s true benefits and how it can help us cope with different illnesses and medical conditions. The problem isn’t monitored medical use, but excessive recreational use. The major concern about legalizing weed and reducing its price is that there will be a massive increase in heavy use and that worry would be exacerbated to the extent that the growth in heavy use is among juveniles.
No one is saying that Marijuana shouldn’t be legalized on a Federal Level, for recreational and medical marijuana use, but it should be monitored to avoid overuse.
Apart from allowing us to reach a euphoric high or to help us cope with today’s ongoing stress, it should be accessible to all that suffer from medical conditions, those who want to smoke it for personal usage under reasonable consumption levels and more importantly, it should be used as an economic tool to help the economy exit its enormous fiscal debt.
Now the question is – What price should a gram of marijuana be?
We’d love to hear your thoughts on our Facebook Post.
Related Article: How Much Are YOU Paying for Weed Compared to Other Countries