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10-03-2006, 12:34 AM #14
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the GOOD and the BAD aspects of legalization
Wrong.
Originally Posted by Buddha Man
From a simple economics perspective, that would never last.
Currently, dealers face far higher operating risks than they do if bud was legalized. That is the reason prices remain as high as they are on the streets.
Now enter legalization. Virtually all of the risks are eliminated from the buisness, other than the typical risks associated with running a buisness. Growing costs go down, as you don't have to have such high security measures from worrying about getting caught. Transportation costs go down for the same reason.
If public buisnesses were to charge more than street prices, while offering a lower quality of bud, people would naturally simply buy it off the street like they do now. Someone will offer a better quality product at a lower price and still be able to make a huge profit. When that happens, buyers will begin flocking to that buisness.
In response, other buisnesses will be forced to lower their prices and/or increase the quality in order to stay in buisness. You simply can't stay in buisness while offering higher prices and lower quality in a capitalist society. That's the beauty of capitalism.
The only concievable time where prices could go higher than street prices would be when it is legalized. Why? The demand from current bud smokers is going to skyrocket, and everyone's going to take advantage of that fact. IMO, it'll probably last about 6 months, after which prices will normalize.
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