So, something interesting happens to weed after it’s legal (Washington State)

[n2doc]

Two years ago, the Washington state began an unprecedented policy experiment by allowing large-scale production and sale of recreational marijuana to the public. The effects on public health and safety and on the relationship of law enforcement to minority communities will take years to manifest fully, but one impact has become abundantly clear: Legalized marijuana is getting very cheap very quickly.

Marijuana price data from Washington’s Liquor and Cannabis Board was aggregated by Steve Davenport of the Pardee RAND Graduate School and Jonathan Caulkins, a professor at Carnegie Mellon University. After a transitory rise in the first few months, which Davenport attributes to supply shortages as the system came on line, both retail prices and wholesale prices have plummeted. Davenport said that prices “are now steadily falling at about 2 percent per month. If that trend holds, prices may fall 25 percent each year going forward.”

Ratio of sales value to weight, $ per gram, Washington state

(Chart shows drop from $25 to $9/gram in less than 2 years retail)

Although some observers will be surprised by these sharp price declines – perhaps particularly some investors in the emerging legal marijuana industry – seasoned drug policy analysts have long predicted this effect. As noted by Caulkins and his colleagues in the book "Marijuana Legalization: What Everyone Needs to Know," prohibition imposes many costs on drug producers. They must operate covertly, forgo advertising, pay higher wages to compensate for the risk of arrest, and lack recourse to civil courts for resolving contract disputes. Legal companies in contrast endure none of these costs and also can benefit from economies of scale that push production costs down.

more

https://www.washingtonpost.com/news/wonk/wp/2016/05/04/the-price-of-legal-pot-is-collapsing/?hpid=hp_hp-more-top-stories_potprices-845am%3Ahomepage%2Fstory

[In_The_Wind]

1. Kicked and recommended

[scscholar]

2. The state allowed it...

but considering it is still federally illegal and there are so many restrictions, and thus still tons of arrests, we don't have legalization at all. If it got cheaper while still being basically illegal, imagine if we had actual legalization!

[n2doc]

3. Well they speculate in the article that skunk grade would be free n/t

[Major Nikon]

6. If we had actually legalization things would change some

For one thing, production would be far more centralized, if not moved overseas. Costs would continue to go down, which would destroy the black market, but taxation would probably increase.

[Lordquinton]

7. It's so dead simple to grow

Often harder to get rid of. The lifting of prohibition would allow a cottage industry, unless of course they still clamp down regulations. As for overseas, that's a long way off, we might be moving towards legality, but many countries still keep it under tight control, the risk to corporations wouldn't be enough to just throw it here.

Unless they use the TPP to break China's prohibition.

[OffWithTheirHeads]

4. Back in the day you could buy a kilo on Haight street for $80.00

Of course it wasn't nearly as powerful as it is today but it was a lot more social. A group wold gather in the communal living room and smoke and talk for hours. Now, two hits and your toast. I stopped smoking the stuff when Panama Red hit $15.00 per oz. Stuff just makes me paranoid.

[pscot]

5. Ah the wonders of a free market

[cheapdate]

8. If they completely legalized cultivation in Tennessee,

farmers would bush-hog fields of the stuff and rake it up into balers.

[Canoe52]

9. I live in Washington State

most of our friends are growing a couple of plants in their backyards. And we are all 55 and up. Nobody I know pays for it.

[mountain grammy]

10. Growing our own in Colorado..

but with good bud selling for as low as $99/oz, and trimmings even less, it's nearly as cheap to buy.

[jtuck004]

11. Took a perfectly good medical marijuana program and made any grows

at home illegal, made it only commercial so they could lie to themselves and think they are taxing it all. 'Course,tens of thousands of people are growing it anyway and giving a well-deserved finger to the nanny government of Washington State, still operating under the same old misinformation as decades ago.

A few who are making money are trying to tell us how good it is, but they really don't care whether anyone else lives or dies, they just want their money.

These policies train people to disrespect government, and in the process create those who take over federal land or support neo-fascist real estate swindlers for pres.

People wonder where the real estate swindler gets his people - maybe it is from pathetic little state bureaucrats who create them with their policies designed to screw taxpayers over.

The liquor and cannabis board isn't doing this state any favors. Voting season will be interesting on a local level.

[bahrbearian]

12. King County last week put a moratorium it. For new grows and stores.

[aidbo]

13. I'm already seeing it get cheaper in Oregon.

I was a bit dis-heartened at first because it was so much pricier than getting it illicitly. But I've already seen the price drop to less than $10 a gram for top shelf. ($30 per eighth pre tax). Heck, my local shop had a deal the other day of BOGO eighths. Walked out with a quarter for less than forty bucks.