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How Much Should An Ounce of Marijuana Cost In A "Free Market," Society?

I am not a stoner, but know friends who spend between $150 - $400 per month for a single ounce of weed. Holy black market expensive. It's a freaking plant for God's sake, not some precious metal!

I never would have thought that a single ounce of "high grade," marijuana would have as much value as a quarter ounce of gold.

Marijuana prohibition just doesn't make sense...in SO many ways.

So how much should and ounce of "high grade," weed cost if marijuana were to be legalized?

$20 would seem to be a fair price....taxes included.

Let's say about $10 of the cost is attributed to some kind of state tax.

Let's assume that the average American toker smokes 1 ounce of weed per month.

$10 X at least 30 million American potheads =

$300 million per month in tax revenue.

That equals $3.6 Billion per year!

What if the taxes were $50 instead of $10?

$60 bucks for an ounce of "high grade," weed...

That equals $18 Billion per year! At least...because I am being overly conservative by estimating that less than 10% of the American population smokes pot.

The LAST thing I want to do is give the government more taxpayer dollars to waste, but if legalizing weed could perhaps supplement the elimination of the Income Tax, eliminate wasteful DEA and police force expenditures, reduce crime, and make room in jail for the real criminals of society... I'm all for decriminalizing marijuana.

"How Pot Saved The West"



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you're crazy.

and you have no idea what the hell you are talking about.

In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot.

I don't know

But you can bet the gov't will try to squeeze blood from a stoner.

To my Liberal Trolls:
"Really Don't mind if you sit this one out. Your words but a whisper, your deafness a shout. I may make you feel, but I can't make you think."
Ian Anderson 1972

Hehehehe

I saw / read what you did there....stoner....hehehe....stone...hahahaha.....

Good one.

$10.00

For a three finger Lid.

lol

in the 1970's

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Rand Paul 2016

Made you

Smile tho' didn't it?

~

:)

it was before my time but i've heard the stories. most people nowadays don't even know what a lid is.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

it would be difficult

to sell because people would grow their own.but hemp, and all the products that can be made from it, would be the real moneymaker. the real job creator. the real taxable revenue,the real solution to saving our topsoil.no pesticides, herbicides, tilling or fertilizers needed. it grows wild every year in even the harshest of weather conditions. i know, i see it everywhere in iowa. its a tough plant to kill.

some would "try" to grow their own

but they would quickly realize that they don't know what their doing and it's cheaper and easier to just go to the dispensary and get better stuff.

most people don't brew their own beer or grown all the food they consume.
all these things take time and money and skill to do properly. some people do these things but not the majority. dispensary's are booming in co as well as cali, the outdoor weed capital.

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Rand Paul 2016

It's not rocket science!

I get your point, but its a weed and not quite as difficult as you make it out to be.

A nation of sheep breeds a government of wolves.

it's easy to grow

bunk weed

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

It's easy to grow

good weed too. It starts and ends with the seed your using!

A nation of sheep breeds a government of wolves.

but to answer the question

The price really could be incredibly low. If it were truly a free market the price could be ten dollars an oz or less.

not for anything i would want to consume

$

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Rand Paul 2016

Good subject, was just thinkin about it myself

People need to remember that the price would be dictated by those that can get the best product on the market for the cheapest price so to say that if an oz takes $30 to produce, then the grower would demand $60 per oz and take home one hundred percent profits is drastically underestimating the power of the market to drive down prices. Small, independent growers would be forced into a boutique market very quickly and most would go out of business trying to compete with the giant farms capable of putting out millions of pounds at a fraction of the cost. The profit margins would be reduced to cents per oz. If there was even a chance that marijuana was going to be legalized you would have to expect that the giant tobacco companies, or anyone like that, would invest ridiculous amounts into research and development trying to cut costs and raise THC levels.

My hold up is that the government could completely ruin the benifits of marijuana legalization through taxes and regulation. I live in Oregon where they tried to pass a sort of "legalization" that would only have allowed state sanctioned facilities to grown and to sell pot, a lot like what we have with the sale of liquor in Oregon. That sort of "legalization" would just create a monopoly and would not have even gotten rid of black market transactions. A lot of people propose that we tax weed up to wazoo and the extra revenue would save America. In reality taxation would limit the benefits that we would see from legalization. If we wanted to see the most amount of benefit from marijuana we would just lift all restrictions on growing selling and consumption. The added capital obtained through the growth in industry and the savings on the law enforcement side would dwarf the revenues incurred through taxation.

I noticed you took a swipe at my post below

I was figuring a high profit margin for grins to see if anybody was paying attention.

You still should listen to the interview. Its got some good stuff in it on this subject. Pennies on the pound man!

http://scotthorton.org/2013/01/24/12313-allen-st-pierre/

listening to it right now

:)

I say

let the free market decide.

Seriously? This is not a

Seriously? This is not a topic for the Daily Paul. I am sure you realize there are plenty of us who dont support the use of drugs. I dont beleive they should be prohibited, but I sure as hell dont support their use either. For that matter I dont support alcohol or tobacco either. This type of post makes it seem that libertarians only care about legalizing pot to get stoned. It should be legalized simply out principle...and to defund the criminal element, while marijuana is fairly harmless...that doesnt mean people should ingest it unless it helps with a medical condition, though doing so is someones own choice...still not an appropriate topic. Its like asking the most efficient way to get falling down drunk.

Very few people abstain from drugs

Kids are drugged in grade school, most adults are on on Rx or several.

Why the hypocrisy? Viox was a deadly, FDA approved, Doctor prescribed drug.

Not a single death from toxicity or violence form cannibus use.

Free includes debt-free!

jrd3820's picture

"still not an appropriate topic"

Not for you to decide.

"This type of post makes it seem that libertarians only care about legalizing pot to get stoned"

Don't worry about what it looks like to other people. Worry about yourself.

“I like nonsense, it wakes up the brain cells. Fantasy is a necessary ingredient in living.”
― Dr. Seuss

another 1 year 2 month

another 1 year 2 month poster... you have to be the same dude posting under different names. You do not know what weed is, it's benefits and other uses are. You are clearly anti liberty.

Listen to this Scott Horton interview with the head of Norml

http://scotthorton.org/2013/01/24/12313-allen-st-pierre/

I believe you will find he says Lab grown weed...like the most high end managed indoor grown under lights in climate control would be around 30 bucks an ounce cost...add in profit and it would be 60/ounce. Don't know what they would tax it another 40% So $100/oz for the finest flowers on the planet?

Probably a good starting point and I would bet once the free market was allowed to operate people would find even cheaper ways to get the really high end buds.

Now open it up to out door row crop and the price falls through the floor. Might not e High High end, but it would certainly put pressure on the indoor labs.

100.00 an ounce... Here in

100.00 an ounce... Here in colorado the best weed goes for 45.00 an 1/8 of an ounce.

Did you even bother Listening to the interview

It has to do with the Economies Of scale...He uses a Large square footage for a grow house and I bet You Don't know what he says the greatest cost is for it.

Its a study done by NORML...I am not going to argue one way or the other, but I don't think CO can be consider truly free market since Obama can probably drone the grow Houses and call it legal in the war on terror.

Or Maybe your dealer is just Ripping you off and you don't realize it yet. Best stuff I ever smoked was 60 an 1/8th in a state where its not legal. But It was shipped in From CO. So I got a real good theory as to why you haven't seen a giant price drop.

just listened

he said 90% of the cost was from the human interaction with the plant.
the human interaction cost should be nowhere near that high. if it is then these warehouse grows will be put out of business by the grey market where the human interaction cost is less than half that. plus, they have no fee's for regulation and compliance which can run up to $30,000 just to start a dispensary. he must be talking about the whole process from seed to sale and paying butenders and receptionist $10-15 an hour, 8 hours a day to sit around doing nothing half of those hours (grey market wins again). i can't believe his numbers include start up cost, rent, marketing, legal and everything else people don't think about. if he was talking about an inferior outdoor weed grow then that may be a more realistic number. i know the marijuana labor unions are big in cali and will run up the cost but the unions don't get much love here in colorado.

the (somewhat) free market retail price per indoor oz in colorado is around $125 at the low end and $300 at the high end with $200-$250 being the average. that's a real life example not some bogus estimate.

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Again all the nay Sayers from CO are missing the point here

If you run a grow op and you can sell your bud for 300 an ounce in state. Yes I am well aware you get a discount if you buy a QP or even a whole LB. But since ever one is throwing around the 300 an ounce number lets roll with that.

How much would it sell for in Missouri?
What about Montana?
Lousiana?
Texas? Minnesota? Iowa? Wisconsin?

Is ANY BODY CATCHINg ON YET? Yea Yea Yea its the free market price you are seeing Colorado, But perhaps there Just Might be OTHER MARKET FORCES you are for some REASON COMPLETELY BLIND TO?

THINK for a minute. It doesn't have to be some giant a wrong study. Its the free market at work. People go to Colorado to run grow ops just to supply these other states. They can sell it in CO for 300 or run back home and sell it for 400...if its real good 450. All it takes is 150 bucks in gas money, but as long as you bring a good quantity it pays for itself.

It happens I know of a few that do it. It is the price mechanisms and laws of supply and demand at work. That's why you can't get dro for 100 an ounce. There is way more demand than you are seeing for it. Now if other states start opening up Your price will drop.

You really think this study he sites is flawed... I am not going to argue with you on that b/c I haven't seen the study. But I would think start up costs would be factored into any study. Why would you even bring up start up costs on this cash crop though? 30 G? would that not be paid after the first harvest? Given 300/oz and say 1.5oz/plant so 30grand/$300/oz= 100 oz that's only 67 plants. I am afraid that seems like a small grow op; not a commercial op. Runn the numbers again at $100/oz and that's 300 oz or 200 plants.

Then Again I am Not sure How many plants they can put into 50,000 square feet. Lets say each plant needs 4 foot by 4 foot and half the area is used for a nursery and staging. so 25g/16=1562.5 plants That's 146 pounds. In one harvest But as SIERRAHPBT says I have no clue what I am talking about. Maybe 16 square feet is way too little space for a weed plant. Maybe A plant only puts out a quarter ounce...I have NO IDEA WHAT I AM TALKING ABOUT!

we live the reality in co

first off, take the $300 an oz number and flush it, it's not realistic in the co market. i've only seen a few disp "trying" to selling oz's for $300 out of hundreds. a more realistic number is $200 an oz. for some reason a few years ago people stopped getting discounts on multi pounds. 1 pound pretty much cost the same as 4 or 5. you do get graduated discounts on amounts under a pound in the disp and grey market.

"How much would it sell for in Missouri?
What about Montana?
Lousiana?
Texas? Minnesota? Iowa? Wisconsin?"
you should not pay more than $300-$350 an oz. $325 being the average.

if you know people paying $400-450 an oz call me! i'll go to the disp and pay $200 or less and then......all day long my friend. ;)

"Is ANY BODY CATCHINg ON YET? Yea Yea Yea its the free market price you are seeing Colorado, But perhaps there Just Might be OTHER MARKET FORCES you are for some REASON COMPLETELY BLIND TO?"
i guess i missed your point. i think what you're saying is that if texas or other states legalize then the price would come down in co because of more production and co would not be able to export to other states for as much as they do now. i don't think that would happen because the disp are not that profitable anyways right now. the market is flooded and we are seeing the lowest price the disp can sell for is around $125-$150 an oz and pay the bills. any lower and they can't afford to stay in business. many are struggling now. the prices in tx have gone down dramatically to around $3000 a pound from a high of $5000 not many years ago. most of that is because of co and other mmj states sending it there.
co and cali are two of the biggest mj export states in the country right now. also Washington state used to move a ton of bc bud from Canada in the 1990's but not so much now.

"They can sell it in CO for 300 or run back home and sell it for 400...if its real good 450."
no they can't sell it for $300 in co when tons of disp sell for $150-$200. if you can get $400-450 an oz back home in any of the states you mentioned...call me, i take bitcoins. maybe in ny and a few other states.

his numbers are off for many reasons including the fact that there will not be a true free market for mj for a long long time. what i mean is if tx legalizes they will have all kinds of crazy taxes and regs preventing a true free market price. also i can destroy his numbers just by comparing 50,000 square foot of retail space in new york vs co or somewhere super cheap in the midwest. the 90% labor cost goes poof in a place like ny. his numbers must assume total legalization where you can sale products freely between the states like alcohol. that's probably not gonna happen in his lifetime. i don't see that happening for at least 20-30 years. by that time we will have our own personal robot grow it for pennies on the pound. by that time there will be no pennies or nickels etc thanks to fed inflation.

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Rand Paul 2016

It's true

and let's not forget that this guy is lobbying here to the public. Intellectually he's being slightly dishonest. But the post above is spot on for Colorado.

In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot.

i did not listen but

i meet allen in colorado in 2006 at a fundraiser with a few other beltway stoners. i'll give it a listen but i can almost guarantee you his estimated numbers are wrong.

in a large indoor grow i would say the greatest cost is electricity.

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Rand Paul 2016