• Rob Spectre
  • 13
  • Apr
  • 09

A few weeks ago, hippies mustered enough organization to flock to the Internet to demand of their new hopeful president satisfaction.  A notoriously single-issue constiuency, they had their own idea on stimulating the economy which conveniently correlated with their favorite pastime.  The hippies got their answer from Barack Obama, though I suspect its consideration fell a little short of the seriousness with which the question was posed.

We took votes about which questions were going to be asked, I think … 3.5 million people voted.  I have to say there was one question that ranked very high.  And that was whether legalizing marijuana would improve the economy and job creation… I don’t know what this says about the online audience.

This was a fairly popular question, we want to make sure it was answered.  The answer is no, I don’t think that is a good strategy to grow our economy.

I’m always surprised by the number of weed smokers that want it legalized.  The music, the culture, the commerce, the relationships – the whole stoner world hinges on its illegality.  It would be like a guy with a mohawk getting elected president: why would we listen to punk rock if The Man were one of our own?

Photo: Clint L.

Photo: Clint L.

In towns like San Francisco, it is a question asked of every publicly elected official, no matter how little influence the head of the City Water Department can wield on the issue.  The din has picked up particularly since last October, with the latest argument being the creation of a new, high volume taxable industry that would carry with it a ton of jobs for an economy at 10% unemployment.

I’m not sure what quantity constitutes “a ton of jobs,” but I suspect even if the legal status of the commodity to change, the product source would not. Irrespective of whether or not it can be sold at the corner store, the large and sophisticated infrastructure for marijuana’s growth, harvest, commodification, logistics and wholesale that already exists isn’t going to suddenly go away. Marijuana operations in Venezuela are not like the dank Hollywood tyrannical sweatfarms manned by hordes of dudes with automatic weapons. They are businesses whose products happen to be illegal in a lot of places, but they are businesses that are mature and strong nevertheless. The lionshare of the jobs behind marijuana are in South America, where they (like tobacco) will stay.

Further, regulation should be the last thing any hippie would want. Look what Coca-Cola did to soda, what McDonald’s did to food, what Budweiser did to beer, what Brown-Forman did to whiskey, what Philip Morris did to tobacco, what Sony did to music, what Universal did to film, what Barnes and Noble did to literature, what Wal-mart did to fashion, what Ikea did to my living room, what ExxonMobil did to the air we breathe, what Vivendi did to the water we drink, and what Lehman Brothers did to our livelihoods. Every one of them legal. Every one of them regulated. Every one of them destroying our lives a little more each day.

So do they want their Quarter Stoners with Cheese? Crispy McReefer Value Meals with supersized Happy Fries? The kind of ganja that a 21st century global economy would produce fettered only by the impotence of government regulators?

No fucking thanks.

If you like getting high, you should pray prohibition lasts the rest of your hippie days. Because the moment Mary Jane gets McDonaldized, that schwag ditchweed you pick up at a quarter for a dime is going to taste like the Good Ol’ Days.

This two-part piece will continue Wednesday with the basic arithmetic behind the hippies’ economic forecast.

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The Myth of the Weed Windfall (Part 2) - Rob Spectre, 15 April 2009
The Drug War Finds A New Enemy - Robert Taylor, 29 July 2009
The First Act of the President-elect - Rob Spectre, 10 December 2008
Anus Ghost - Seth Kingry, 11 September 2009
Didn’t We Almost Have It All? - Hala V. Furst, 13 December 2008
  • The thing is, it's a lot easier to grow some pot than it is to open a McDonald's. Lower investment = more mom and pops = less corpratization.
  • @rob Nah, I don't buy it for that reason either. I'm pretty sure I know why you buy it.
  • @rob

    I'm with Clint on this one.

    There are more pros with strong supporting facts (tax revenue, decrease prison population, medicinal, lower cost of drug war, better frito-lay sales) than your said speculation of the cons.

    My assertion is that the Marijuana market is exists and the players may change, but we'll continue to still see the same pot market. There will always be shitty shwag and growers who grow shit that will allow you to see through time.

    Speaking of Time, consider this except from mainstream Time (and then consider how much money is spent on law enforcement and corrections):

    It is estimated that pot is the largest cash crop in California, with annual revenues approaching $14 billion. A 10% pot tax would yield $1.4 billion in California alone.[1]

    [1] http://bit.ly/OieFl


  • Congrats @roder on posting our 1,000th comment! w00t!

    I still don't see what makes you believe pot is going to be invulnerable to the corrupting influence of the global economy. There indeed would be poor quality and high quality vendors of marijuana, just as there are poor quality and high quality vendors of hamburgers.

    But, just as McDonald's makes it a pain in the ass to find a good hamburger, so too would the global commercial machine make it a pain in the ass to find a good high. Just look at your own anecdotal experience in buying music. Best Buy makes it fundamentally harder to find a good record than it was ten years ago, and when you do find one, you have to pay $15 instead of $10.

    The expectation that legalization won't have any dramatic effect on overall quality is an unrealistic one, as it is demonstrated in every other consumer space.


    The $14 billion number is one I see bandied around quite a bit, but even this Time article doesn't cite the source. We'll talk more about numbers tomorrow, but I think the stat is suspect because of the inference of the greater market in the United States. Assuming California constitutes 10% of the United States consumer economy, that suggestion puts the US weed business at $140 billion.

    For reference, that would suggest that marijuana is a bigger business than beef ($75 billion), liquor ($128 billion), and porn ($100 billion). Further, it assumes that prices will remain static after legalization, which Prohibition has already taught us is not the case. A fifth of single malt whiskey that went for $50 in 1933 sold for $3 in 1934.

    By that scale, the 10% tax the Time article is talking about would fall from $1.4 billion to $84 million, which would barely make 12% of San Francisco's operating budget for public transportation.

    Tomorrow's piece will talk more about the squishiness of these numbers, but I just don't buy weed as an avenue out of economic distress.

    [edit: date fix]
  • I think you're way off here. Legalization is not the same as corporatization. Food is regulated, but there's plenty of food that isn't McDonald's. Universal is just one company that makes movies; there are plenty of good movies out there. The plant is not patentable; anyone will be able to grow it if it's legal. I've had some pretty good home brew beer as well -- somehow lifting prohibition did not stop that.
  • Thanks again for CCing your photo, Clint.

    My assertion is that in this global economy, legalization will result in the McDonaldization of pot which would ultimately be the worst thing for pot users. Absolutely correct that there's more food and movies than that available at McDonald's and Universal, but both companies are of such spectacular size they suffocate markets for better, healthier alternatives. Of course anyone can flip a burger or make a flick, but so long as there are competitors that kind of ridiculous size, how many people get to eat your burger or watch your movie is going to be up to them, not you and certainly not your customers.

    Each emerging market in the past quarter century from biotech to the Internet to space tourism to green tech already show signs of such suffocation. I don't understand how one would assume that weed would remain impervious.
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