The price of marijuana has been dropping because of legalization. A report by the Washington Liquor and Cannabis Board shows the price per gram to be $9.32 as of March 2016. This is a significant drop in price compared to prices in 2014 which peaked at almost $25 a gram. Legal businesses can produce the plant at a lower costs than underground businesses could.
Since Washington passed I-502 in 2012, marijuana businesses have been leaping into the market. These companies have a major advantage over the underground market in that they can take advantage of resources in the legal market such as advertising, legal assistance, and the time saved by not having to hide their operations. Because of these advantages, legal marijuana is cheaper to produce than underground marijuana which ultimately translates to a lower price at the counter.
Legal Marijuana is a Booming Business
Legal marijuana businesses are pushing black market competitors out of the business. While it is true that lower pot prices will collect less tax money for the government, it will save tax payers the cost of catching and jailing these criminals. I-502 was meant to boost the economy, collect state tax and reduce the size of the black market. Through watching prices and other economic and social impacts, we can see the main goals of legalizing marijuana clearly succeeding. What benefits do you see of marijuana legalization?
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