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There’s still a lot of money to be made in the illicit cross-state weed trade. As long as weed isn’t federally legal, organised crime will use legal states as a

• reaperman 3y ago
  That said, the wholesale profits for black market marijuana are insanely low right now. I'm seeing $300/lb for decent-enough outdoor grown strains. Places like Oklahoma allowing lots of low-regulation grow ops really could lead to commoditization of the product to the point where a lot of the weed is eventually sold near the marginal cost of production. This might in the future dissuade cartel/mafia/triad-style activity after those groups take the time to realize there's no money left in the game. Psychedelic mushrooms (at wholesale, per pound pricing) are currently being sold for less than $1/g -- there's an incredible oversupply of that product nationally.
  • deleted 3y ago
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  • alephnerd 3y ago
    > This might in the future dissuade cartel/mafia/triad-style activity Not really. Overproduction incentivizes consolidation, but it is difficult for legitimate businesses at scale to enter the Marijuana industry due to Federal regulations around banking and the drug trade. This leaves organized crime as the only player with the capital needed to execute a consolidation driven business model. There were similar dynamics in waste management before WM Inc was founded in the 1980s as well