A reader pointed me toward this report from CNBC: Washington has more pot than it can smoke.
Feels like I hit a jackpot in watching the battle between free enterprise and crushing regulation. Follow along with me as I highlight the story with editorial comments on capitalism and regulation.
You may want to get a fresh cup of coffee. This will be along article.
Why so much discussion?
Why am I spending so much time writing about medical marijuana? As a general matter I don’t give a hoot about this marketplace because I have zero interest in this or any other market for intoxicants.
The medical marijuana markets are a natural experiment in a small, separately visible, newly created market and the impact regulation has on the development of that sort-of-legal industry.
Opportunities to see whether regulations strangle an industry are so limited everywhere else in the economy because other markets are large, well-developed, complex, intertwined, and have already adjusted to regulation.
With medical marijuana we can watch a brand-new industry adjust to brand-new regulations.
Back to the article.
There is apparently a huge excess supply of recreational marijuana over demand in Washington State.