Since the legalization of marijuana in some of the United States, Mexican drugs cartels have seen drops in their illegal business. Either recreational or medicinal marijuana is now legal in over half of the U.S. and American weed has now become a serious threat to illegally imported Mexican weed. NPR did an investigation in Mexico and talked to a marijuana farmer who said 1 kilogram of weed cost $60-90 two to three years ago but now that it is legal in more states, the price for a kilo has dropped to $30-40 and it is expected that the cartels will collapse beyond recovery if the price falls to $20/kilogram. The article also states that not only is legally grown U.S. marijuana gaining popularity because it is up front and legal, it is also of higher quality. Pot has been legal for recreational use in the U.S. for 11 months now and its effect on the illegal drugs market is already apparent.
It sure seems like the "experiments" in Colorado, Oregon, and Washington have been mostly successful and this news of its negative effect on Mexican cartels is certainly yet another good sign. It will also force illegal dealers to find income from somewhere else so they will have to get jobs and pay taxes on what they make rather than off-the-books deals where they keep profit. I wonder if these numbers of the declining illegal market will encourage more states to legalize as it looks like this will be more effective than the war on drugs ever was.
11 Months After Marijuana Legalization, Here's What's Happening to Cartels
I think that the legalization of marijuana in the entire country would greatly benefit us. Not only will the government would be able to add a great deal of revenue through the taxation of it, but it will also most likely cut down on a lot of crime that is related to gangs that make their money through the sale of marijuana.
ReplyDeleteIf legalizing recreational use in only 3 states dropped the price of a kilo from $60-90 to $30-40, I would really like to see what would happen if, for example 10 to 20 states also legalized. I would be even more curious to see what would happen if states on the border such Arizona, New Mexico, or Texas all legalized and demand for cartel weed where it is most accessible decreased. If drug cartels are not profiting enough to stay in business, I hope they dissemble instead of increasing production of other illegal drugs or participating in other illegal activities.
ReplyDeleteIt will be interesting to see what happens to more depressed areas of the country as drug dealers are no longer able to make a living off of selling marijuana. It will also be interesting to see if a franchise of cannabis dispensaries is created or if they will continue to be mostly private.
ReplyDeleteThis brings an interesting point to the War on Drugs through the increased supply and holding the demand constant; prices have fallen. This has been hurting a large source of revenue of the cartels which is forcing them to look to other money making activities and be more competitive with each other. If more states did legalize, the effects would hurt the cartels even more and make them more desperate.
ReplyDeleteLegalizing marijuana federally, in my opinion, could cause an economic boom similar to the .com era. Many American's consume marijuana illegally and many say they would smoke again if it was legalized. This would also allow the DEA to focus on harder drugs and they could use the $42 Billion a year budget they use for hunting marijuana dealers to take on violent cartels and their harder drugs.
ReplyDeleteMy worry is that with a decrease in the revenues gained from marijuana, cartels will begin to look more towards other areas of sales. This could potentially cause a spike in the number of harder drugs that are sold or possibly some other sort of illegal activity. I doubt cartel members will just assimilate back into society and find jobs.
ReplyDeleteit must be a good new to see how the legal of marijuana in US improve the economy and decrease income in illegal activities but same as Uzzolino, i don't think cartel members will just go get job and pay taxes since they have already known how to make money by committing illegal activities
ReplyDeleteI agree with the Bryce in that I think the cartels will simply move to harder-drug sales. In the article, cocaine was shown to have the second most value per square kilometer so I think it's safe to assume production would increase to make up for their losses in the marijuana industry. I do believe that the United States should consider federally legalizing marijuana for the sheer fact that it could seriously hurt Mexican drug cartels and/or decrease their numbers and murders.
ReplyDeleteIts good to see that the legalization in just a couple of states took revenue away from Mexican cartels. This seems like an easy policy to hurt the cartels. While they may just switch to other drugs, it will still hurt them financially. This is a complex situation that requires a lot of different things to happen in order to stop the illegal drug trade.
ReplyDeleteAlthough the Mexican Drug Cartels are taking a hit, it is very likely that that they will find new illegal ways to make money just as bootleggers did back in the 1920's. I am glad that the cartels have taken a hit but it will be interesting to see how they evolve in the upcoming years.
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