Economics Thread

Jaw said:
There is no reason Mexico can't solve it's own cartel problem if other employment and government revenue opportunities exist. The people there aren't less able, the culture seems to value hard work more than that of their northern neighbor. I've been in migrant agricultural worker housing and promise you those people could have lived an easier lifestyle in the drug trade.

Foreign investment in one area at a time can change that by providing employment alternatives and compelling the government to police that area to protect the industry. The more that happens, the more the government is able to expand the safe area to draw more investment. The cure to the drug war, border security, and illegal immigration has always been improving things on the southern bank of the Rio Grande.
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I disagree. The cartels reach the presidency office. Mexico being able to control the cartel within its borders is like saying Afghanistan is strong enough to fight the taliban inside it’s borders. It can’t.

The cartel pays more than the Mexico military and pays more than the local police.
 
Krgrecw said:
I disagree. The cartels reach the presidency office. Mexico being able to control the cartel within its borders is like saying Afghanistan is strong enough to fight the taliban inside it’s borders. It can’t.

The cartel pays more than the Mexico military and pays more than the local police.
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Gold or lead.
 
https://www.latimes.com/california/story/2021-06-14/california-struggling-marijuana-industry-cash-grants-budget

SACRAMENTO — The California Legislature on Monday approved a $100-million plan to bolster California’s legal marijuana industry, which continues to struggle to compete with the large illicit pot market nearly five years after voters approved sales for recreational use.

Los Angeles will be the biggest beneficiary of the money, which was proposed by Gov. Gavin Newsom to be provided as grants to cities and counties to help cannabis businesses transition from provisional to regular licenses.

Many cannabis growers, retailers and manufacturers have struggled to make the transition from a provisional, temporary license to a permanent one renewed on an annual basis — a process that requires a costly, complicated and time-consuming review of the negative environmental effects involved in a business and a plan for reducing those harms.

The funds, including $22 million earmarked for L.A., would help cities hire experts and staff to assist businesses in completing the environmental studies and transitioning the licenses to “help legitimate businesses succeed,” Ting said.

…

In 2019, industry officials estimated there were nearly three times as many unlicensed businesses as ones with state permits. Although some industry leaders believe enforcement has reduced the number of illegal pot shops, a study in September by USC researchers estimated unlicensed retailers still outnumbered those that were licensed.

Supporters of legalization blame the discrepancy on problems that they say include high taxes on licensed businesses, burdensome regulations and the decision of about three-quarters of cities in California not to allow cannabis retailers in their jurisdictions.


————————

Government intrusions in the marketplace causes distortions. Should we reduce the regulations at the root of the problem? Nah, let’s spend an additional $100 million to help businesses hire “experts” to navigate our overly burdensome regulation and licensing processes.

What a crock.

Trump was rightly mocked for going bankrupt in the casino business. What do we say about a government struggling to establish a legal market for marijuana?
 
acesfull86 said:
Trump was rightly mocked for going bankrupt in the casino business. What do we say about a government struggling to establish a legal market for marijuana?
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I laughed.

But seriously, there's a reason the moonshine business still thrives in Appalachia. Good shine is easily the best value in liquor.
 
acesfull86 said:
https://www.latimes.com/california/story/2021-06-14/california-struggling-marijuana-industry-cash-grants-budget

SACRAMENTO — The California Legislature on Monday approved a $100-million plan to bolster California’s legal marijuana industry, which continues to struggle to compete with the large illicit pot market nearly five years after voters approved sales for recreational use.

Los Angeles will be the biggest beneficiary of the money, which was proposed by Gov. Gavin Newsom to be provided as grants to cities and counties to help cannabis businesses transition from provisional to regular licenses.

Many cannabis growers, retailers and manufacturers have struggled to make the transition from a provisional, temporary license to a permanent one renewed on an annual basis — a process that requires a costly, complicated and time-consuming review of the negative environmental effects involved in a business and a plan for reducing those harms.

The funds, including $22 million earmarked for L.A., would help cities hire experts and staff to assist businesses in completing the environmental studies and transitioning the licenses to “help legitimate businesses succeed,” Ting said.

…

In 2019, industry officials estimated there were nearly three times as many unlicensed businesses as ones with state permits. Although some industry leaders believe enforcement has reduced the number of illegal pot shops, a study in September by USC researchers estimated unlicensed retailers still outnumbered those that were licensed.

Supporters of legalization blame the discrepancy on problems that they say include high taxes on licensed businesses, burdensome regulations and the decision of about three-quarters of cities in California not to allow cannabis retailers in their jurisdictions.


————————

Government intrusions in the marketplace causes distortions. Should we reduce the regulations at the root of the problem? Nah, let’s spend an additional $100 million to help businesses hire “experts” to navigate our overly burdensome regulation and licensing processes.

What a crock.

Trump was rightly mocked for going bankrupt in the casino business. What do we say about a government struggling to establish a legal market for marijuana?
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They really deserved everything bad that comes to them.

It’s insane those people were elected
 
nsacpi said:
i wonder if being illicit is a necessary part of the business model for certain products/services
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I've wondered that too. I do know that I've had some of the product from the main guy on the show Moonshiners, both illicit and after he went legal. I paid significantly less before, and it was better too. Some of the price difference may have been due to his fame from the show, but I've yet to be impressed with store bought.
 
nsacpi said:
i wonder if being illicit is a necessary part of the business model for certain products/services
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They could try seeing what the market looks like without a 23-35% tax rate and a licensing/regulation environment so complicated and burdensome that it necessitated $100M worth of gov't subsidized "experts and staff."

I picture NY going down the same road. They're going to get greedy and want marijuana legalization to serve 10 different ends, then five years down the road when it doesn't fulfill their wishes, they'll be wondering what went wrong.
 
Last edited:
Dan Price
@DanPriceSeattle
·
16h
Level 1:
How come CEOs get million-dollar bonuses

for reaching their goals while workers

get a pizza party?
 
acesfull86 said:
They could try seeing what the market looks like without a 23-35% tax rate and a licensing/regulation environment so complicated and burdensome that it necessitated $100M worth of gov't subsidized "experts and staff."

I picture NY going down the same road. They're going to get greedy and want marijuana legalization to serve 10 different ends, then five years down the road when it doesn't fulfill their wishes, they'll be wondering what went wrong.
Click to expand...

One of the few items Georgia got right was the lottery going mostly to fund scholarships.
 
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graph2021biden.png
 
nsacpi said:
i wonder if being illicit is a necessary part of the business model for certain products/services
Click to expand...


It was doing just fine when it was unconstitutionally outlawed by apply a tax that was impossible to pay. Ironically one of the stated reasons for the tax was to fund medical marijuana. 10 years later they declared marijuana has no medicinal use. Literally went from marijuana brung an accepted medicine for thousands of years to "no medicinal value" in the space of 10 years.



There is nothing wrong with legal sales of marijuana. It's the sky high taxes, ridiculous regulation, and refusal to give old illegal dealers any way to enter the legal market. Any product that is in demand is susceptible to a black market. Heres an example, the cartels are big in the Avocado buisness. Now no one is going to claim the avocado itself is responsible for the corruption and violence the cartel bring to it.
 
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