The Daily World recently printed an article on the front page on how much the state might make if the marijuana legalization initiative were to pass. The official analysis assumed that the state would take over the entire consumer market for marijuana. It stated after all the state license fees and taxes to the producers, the price would be $12/gram, the current medical marijuana dispensary price. In addition, the consumer would pay additional state marijuana tax plus state and local sales tax.
I calculated the final price to be $16.43/gram. This is substantially more than the current “street” price and might encourage bootleg growers to raise their prices. I can also report that the street price has not increased in 25 years, despite the government spending billions to stop and discourage production and consumption. Adjusted for inflation makes it half the price it was 25 years ago.
I submit that this offers proof that a truly free and unregulated market over time offers the best prices and most supply. I await an explanation from the naysayers that say the free market does not work and needs government regulation to make the markets work better. History shows that increased rules and regulations always benefit the big corporations and businesses at the expense of the little guy. Every time I hear big business cry and moan about increased regulation I am reminded of the old southern folk tale about Brer Rabbit and Brer Fox. After being captured by the fox the rabbit keeps pleading with the fox, “Whatever you do, please, please don’t throw me in that brier patch!”
The state seems to be attempting to grab victory from the jaws of defeat. I hope the initiative passes to demonstrate the inability of the government to compete in a truly free market.