An Addendum to my Previous Post

"Parker" replied to my last post (posted on DoseNation) commenting:

"The end of prohibition would make cannabis much much cheaper(as you acknowledge). The energy intensive indoor grows would become a small boutique segment of the market like expensive artisan cheeses. The larger share of the market would move, to one degree or another, towards being a commodity like other agricultural products. So to invest then call for a change in the law is not a good investment decision, however right it is."

His point is, of course, absolutely correct...which is why you should never post hopped up on cold medicine...I phrased that last part completely wrong and it didn't even occur to me. I'd change it completely but I believe that would violate the extemporaneous spirit of this blog. I should have said:

'The irony is that the last time we needed to end a great depression we ended prohibition, but I doubt very much that that will occur this time.' Politicians these days have too much vested in the drug war...it will happen eventually, probably sometime after the vast majority of states have passed decriminalization laws, but not anytime soon.

I did, however, start to think about what a post-legalization scenario might look like.

While I always think that a market will exist for premium herb, much like for expensive cheese or wine, it is true that the price for the majority of stuff may decrease. However, how much it will decrease is debatable. I wonder if anybody has any data on the extent to which alcohol prices dropped after the end of its prohibition, because when I go into a club or restaurant it's still expensive as all hell. Agricultural products aren't that cheap these days either unfortunately. Plus people are already accustomed to paying inflated prices...I'm not sure how much prices would drop initially, but my guess is not by much until competition drives prices down.

I'm also skeptical of the quality of pot that would come out of an industrialized system. Look at the quality of cigarette tobacco.

My bet would also be that if it were legalized it would be taxed so heavily (thus bringing us out of a recession, but also because that would be the only way politicians could discourage its use--as they do with alcohol) that prices could remain similar to that which existed on the black market for store bought stuff, thus giving your existing supply an entry-point into the market. Additionally, there may be various restrictions as with tobacco. For example, while difficult to enforce, I believe it is currently illegal to grow and cure it for personal use; these restrictions could significantly alter the dynamics of the market.

I guess I'd argue that good bud is always a good investment.

Anyway, if a commodity market is ever established for pot I'd be the first one to buy into it.

**I know these last two haven't been my best posts exactly...so feel free to contact me for a refund of your money.