We all know that legalizing marijuana makes a huge profit for the government. Just like with alcohol and cigarettes, the tax money flows in like a river. But what people might now know, and which we’re only now just realizing thanks to initiatives taken by states like Washington, is that when marijuana becomes legal it’s actually cheaper for the customers, too.
Why Is That?
While it might seem like a random positive side effects of marijuana being legal, the price going down is not an accident. The reason is, quite simply, that illegal pot comes with a lot of overhead. You have to grow it in secret (which often limits the supply you can have), you have to deal with criminals (which often means paying far more than you’d pay legal associates), and you have to tightly control the supply to avoid drawing attention, while still making a profit. You can’t advertise, you can’t set up shop in public, and you have to carefully vet every customer who wants to buy from you.
If you compare that to the legal marijuana model, as The Washington Post did, you find there’s no contest. Not only can businesses save time and money by advertising, and accepting every customer who walks through the door, but there’s no need to hide the production and storage facilities. This means marijuana can be grown on an industrial scale, and when the supply is that large, it means the price per unit goes down. Especially when it comes to keeping up with demand, which has only gotten bigger.
So now we have yet another reason to legalize marijuana… it’s cheaper than buying it illegally.