California’s legal marijuana dispensaries are hurting drug dealing hippies in San Francisco and other parts of the state.
Priceonomics‘ writer Alex Mayyasi recently sat down with several hippies in the area to ask them how the economics of legalized marijuana is affecting their business. Local hippy Kenny says of the legalization:
“The hippy kids used to be able to sell their weed real easy at high prices. There were lots of customers and they made enough in a few days to travel for a few weeks. Now though…” at which point he says “medical marijuana” have depressed prices and stolen away the customer base.
It’s not that there is too much marijuana on the market; it’s just easier and cheaper to buy it from legally regulated stores.
In fact, several hippies note that there is plenty of marijuana in New York City, but the “idea of scarcity” has led to high prices and plenty of demand.
Many drug dealers in California are simply leaving the state, moving to NYC where they can quadruples their profits on the very same weed they were selling in San Francisco.
In the past, hippies would sell their pot, hop a train to NYC, and then head home to sell more weed. Lately, more hippies have been sticking to New York City where they “import” their California weed. In some cases, they only return to California to grab more stock before turning around and heading back to New York.
Crossing state lines with legal California weed is illegal, but the amount of money that can be earned is enough to keep many street kids traveling with their illegal stock of drugs.
In the meantime, new marijuana farmers are sprouting up in California at an increasing rate and their new supply of marijuana is helping push prices down even further.
While a prescription is required to obtain medical marijuana in California, it is extremely easy to obtain a prescription to be used at legal dispensaries.
Marijuana is now being shipped via FedEx, by paid couriers, and through other means to other parts of the country where San Francisco’s hippy population sells their product at severely marked up prices.