Home Business Congratulations To California - They'v Made Dealing Drugs Unprofitable

Congratulations To California – They’v Made Dealing Drugs Unprofitable

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We must line up and applaud – perhaps go outside and bang pots and pans – this astonishing performance by the California bureaucracy. They’ve managed to make drug dealing unprofitable.

No, not in that expected return sense, of death or imprisonment making it not worth the candle. But they’ve actually made it a not profitable enterprise to sell drugs to people. Cash coming in is less than cash going out. Which, given the hunger, lust even, for psychoactive substances among many of our confreres is astonishing.

Especially given their method. They simply made it legal then added the tender ministrations of the California bureaucracy to the enterprise. That’s some achievement:

Additionally, the state is shelling out $100 million to help businesses navigate its regulatory labyrinth.

It is to giggle. They’ve managed to take it even further than that. The state is having to subsidise the drug sellers to deal with the paperwork about selling drugs:

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.

It’s nothing – nothing – but the piles of paperwork necessary to do business in California.

Up in Northern California you can go out into the forests and raise a few acres of pot and make a very, very good profit indeed smuggling that down into the urban areas. In the south you can find it as ditchweed – literally, just stuff growing wild. And anywhere at all it takes about 5 minutes to stick some seed in a plant pot and then wait.

California has made it too expensive to do this legally.

After the laughing though think through this a little more. How much richer would everyone be if that regulatory burden weren’t applied to absolutely everything else that is done in the state?

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4 COMMENTS

  1. It’s actually worse, because for those that either remain off-the-grid or decide to return to illegal and unlicensed sale can now enjoy the fruits of “legality” because the risk has been reduced. If I was in this game (which I’m not), I’d work out what the standard markup was for legal sales and then start selling mine with all the right paperwork and packaging as the legal suppliers, but at a substantial discount.

    The customers aren’t going to complain, since I’m selling the same product at a discount and they can’t get arrested for it because “It’s legal weed” (or at least seems to be to the average street cop). Not that they are going to stop people for weed any more, since it’s “legal” right?

    I seem to remember that one or more of the Canadian provinces made exactly the same mistake with legalisation.

  2. From the article:

    “The finding that a larger than expected number of unlicensed facilities are in areas that allow retail suggests that unlicensed retailers are competing with licensed retailers, potentially undercutting the sales of the licensed retailers and reducing the taxes paid to the state,” researchers said.

    Get away? Say it ain’t so! Who could have possibly predicted that that would ever happen?

    *rolls eyes*

  3. An old story in the U.S. – the IRS seized a (legal) brothel in Nevada for unpaid taxes. While waiting to sell it they kept it operating, but lost money. The gov’t lost money running a whorehouse!

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