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How Legal Pot Could Harm the Cartels

Ganjarden

Nug of the Month: Aug 2008
So far, no modern country has ever legalized marijuana production–not even the Netherlands. Yet with heavy drug-related violence plaguing the U.S.-Mexican border, some analysts and policymakers now say that America should legalize weed in order to reduce the power of Mexico's drug cartels.

Marijuana carries the least amount of overhead cost for many of the cartels and provides some of their cash flow for buying guns and influence. Estimates vary, but analysts say pot accounts for somewhere in the range of 20 to 50 percent of the cartels' profits. But that could soon change with competition from El Norte: California has a proposition set for the November ballot–on which voters are roughly split–that would legalize the drug's domestic production and sale. If the measure passes, says a recent analysis by the RAND Corporation, California could become a major supplier of the drug to the rest of the U.S. That, according to George W. Grayson, a professor of government at William & Mary, "would hurt the cartels badly." RAND estimates that it could reduce the drug's pretax price by more than 80 percent.

Of course, whether legalization has any real effect depends on the rate at which the drug is taxed. A tax rate of $50 per ounce, for example, would generally not make high-grade California cannabis cost-competitive with less potent Mexican imports. Yet a lower tax rate could significantly decrease the cartels' market share. That wouldn't put them out of business–they'd still be major players in the markets for *******, ******, and meth–but it could reduce their power.


NewsHawk: Ganjarden: 420 MAGAZINE
Source: Newsweek
Author: R. M. Schneiderman
Contact: Newsweek
Copyright: 2010 Newsweek, Inc
Website: How Legal Pot Could Harm the Cartels

* Thanks to MedicalNeed for submitting this article
 

markscastle

New Member
Won`t do much to harm the cartels.They sell very little of the pot they grow in our forests in Cali.They sell mch more smack and coke here. This is just more spin for the money hunger Oaksterdam backers of prop 19. Vote no In november!
 

Lemon Paradise

New Member
well just think,, you may get your wish, and if prop 19 fails,, then the politicians can look to Mass for inspiration.. so instead of a 50/oz tax,, you can look forward to...
schwag (more than 1% THC to less than 5%) = 150.00/oz tax
mids (more than 5% THC t less than 10%) = 200.00/oz tax
decent smoke (10% thc or more) = 250.00/oz tax...

so be careful of what you wish for,,, you just may get it. :goodluck:
 

Choji

New Member
you pose all these what if situations but what i know is things suck now. If you want to see things change you need to be willing to accept change. Personally, I don't want to think about who had to die for my bowl pack.
 

GangaKing

New Member
If that Prop 19, or whatever it's called, passes in CA. won't it at least be a foot-in-the-door? A way for other states to argue their way into some form of legallization? It might be, at least, a start in the right direction.
 
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