"California’s legal cannabis market has hit another grim milestone: There are now 10,828 inactive and surrendered pot licenses in the state and only 8,514 active ones, meaning dead pot licenses now outnumber active ones, according to the Department of Cannabis Control’s data dashboard.
"This inversion comes seven years after the legal cannabis market opened. While it’s not clear exactly when the threshold was crossed, because the state does not release historical licensing information, California’s legal market has been struggling for years, with thousands of companies going out of business."
The core issue is that taxing it made the illegal growers competitive on price and California has shown little enthusiasm for going after the unlicensed growers. I am reminded of how the American Association Against the Prohibition Amendment sold repeal on the dramatic revenue that taxing alcohol again would raise, based on the illegal price.
I’ve found mentioning that the illegal market dwarfs the legal one brings howls of outrage from the pothead community on X. Many seem, or claim, to be completely unaware of this.
ReplyDeleteAlso, I find it hilarious that California’s own business regulations (and greed for taxes) put a stranglehold on the legal pot business.
ReplyDeleteWhodathunk?
Government doing what it does best: Looting and Wrecking. The government even failed running a brothel, and had to bring in subcontractors to show a profit.
ReplyDelete