Legalized marijuana industry in Colorado faces a problem unlike any other product.
The legalization of marijuana in the state of Colorado is seen as a progressive move that will generate and is generating millions in tax revenue. Strict regulations that dictate the production, sale and distribution of marijuana precisely accompany this legalization. The regulations are obviously set up so that consumers and the society in general can be protected. However, they are preventing specialization and economies of scale (The Marlboro) . The industry in Colorado is becoming a test bunny for the rest of the USA to observe live, how a legalization of a psychoactive drug in only one state is prohibitive in growth. From the perspective of gaining greater tax revenue, marijuana should be legalized at the federal level so that businesses could benefit from institutional infrastructure.
I agree with the author of the article. When it comes to the production, and sale of a psychoactive drug, I would prefer the product to come from a large corporation with massive economies of scale and an established business practice/production method. I wonder why I have this intuitive trust towards large corporations over smaller local businesses for this specific product. Large corporations in the USA and many other countries have been known to lobby governments and politicians to manipulate laws and regulations for the benefit of their company and the disadvantage of society. We expect bigger companies to be under more regulation of the government, to be heavily watched and observed. However, large companies have also got resources and the capital to influence the behavior of politicians and legislators. Yet, my observation is also coming from large companies that operate in the commodity industry. The tables may be turned for companies that operate in the marijuana industry, a product that is very controversial and has many opponents to its legalized status.
Works Cited List
“The Marlboro of Marijuana.” The Economist. The Economist Newspaper, 08 Nov. 2014. Web. 09 Nov. 2014.