Editorial: Dr. Michael Davis
President and Founder LVCIL
September 6, 2021
07:22 AM PST
There are only 4 groups that want Cannabis Prohibition and maintain illegality of a plant that can grow wild.
1. People that benefit directly from it being illegal such as Private Prison owners and Police Officers.
2. Corrupt Politicians that accept kickbacks and bribes from those private prison owners, tobacco, oil, textile, and pharmaceutical companies.
3. THE PEOPLE THAT ACTUALLY GROW AND SELL THE ILLEGAL SUBSTANCES.
4. Uneducated Morons that still believe in “Reefer Madness”
With federal legalization there will be a deluge of new investment capital into cannabis probably to the tune of $200 billion and it is estimated 80-85% of it going into production with the belief that the $2,500 to $3000/pound business model is sustainable. This will create an over abundance with the resultant drop in price. It happened in Oregon. It is happening in California and will happens nationwide once federal legalization occurs. However, until Cannabis is regulated and taxed as a true recreational similar to ALCOHOL by weight and volume rather than AS AN ILLEGAL DANGEROUS DRUG, the illegal Black Market will continue to thrive and prosper with an 80% market share. The Black Market was virtually eliminated when Alcohol Prohibition was eliminated.
How many Licensed Distillers, Brewers and Wine Makers are there and how many Bootleggers? The ATF currently regulates and the government collects taxes on 98-99% of the alcohol trade here in the United States while the Feds barely scratching the surface collecting $10 Billion on a $20 billion/year hobby business industry. In my honest opinion I believe that Cannabis would become a $400 Billion a year industry if it were regulated exactly like alcohol with the raw pant regulated as a Simple Farm Commodity like grapes, potatoes, corn or hops which are raw products in the production of wine, vodka, whiskey and beer while the processed products such as pre-rolled joints and extracts were regulated by the ATF not by the FDA and the DEA as Illegal Dangerous Drugs. In this scenario the governments would probably be collecting $40 Billion a year in taxes at a rate of $15/pound total state, federal and local taxes. The regulators and government officials are idiots when it comes to weed along with professionals in the industry settling for peanuts.
There will always be a market for $150/oz craft cannabis as there is always a market for $1200 bottles of wine or $200 shots of top shelf tequila but it will be very limited. In 20 years I believe there won’t be any smoking of weed except for legacy private smoking lounges because of government assisted housing, state Clean Air Acts and general video surveillance. All public consumption will be by drinks, edibles and possibly single use vape pens however the advancements in bodily uptake of drinks and edibles will be far superior to today. I predict a lounge patron will enter a public consumption lounge and order a shot of Blue Dream or OG Kush and they will hit it like a shot of whiskey and that shot of THC extract will be absorbed and take effect like alcohol does now.
The key to the future of the cannabis industry is not in production of a plant that can grow wild if allowed to but rather in creating the demand for the massive amount of production that will occur once federal legalization happens and there are only four ways to create the demand for any product or service and those are
1. Marketing and Advertising