8 ms·
Just to add some more. The legalization of pot hurts cartel's income. I read somewhere, that pot accounts for 60% of the cartel's profit in a multi-billion doll
by eam 12y ago
Just to add some more. The legalization of pot hurts cartel's income. I read somewhere, that pot accounts for 60% of the cartel's profit in a multi-billion dollar industry! I mention this because of the recent trends in the US where states are beginning to legalize it. I'm sure they weren't too happy to hear that Oregon and Alaska legalize it as it only takes part of the profit away. Once the US is fully legalized, it won't be a hugely profitable business anymore so they will hurt. This means less profits, which means less power for them. With less power, then perhaps there will be less violence in Mexico?
- jeangenie 12y agoWhat would stop the cartels from investing in legal storefronts and capturing profits regardless? (This certainly shouldn't be construed as an argument for the morass we have now, just an interesting aside.)
- gohrt 12y agoThe cartels power is centered in Mexico. They can't monopolize USA storefronts.
- rizzom5000 12y agoPresumably nothing if the money they use to invest is considered legitimate. Nevertheless, it really seems logical that as a society we should prefer that market competition occurs legally in a open and free market rather than violently in an illegal and black market. The difference between the two types of economic activity is tremendous.
- jeangenie 12y agoIt's certainly logical but my question is if it will actually impact Mexican cartel revenue as much as some people claim. If the alternative to cartel weed is industrially-farmed weed propping up another unholy conglomerate I'm not sure either is better.
- DanBC 12y agoHas anyone done a comparison of the death rate from unholy conglomerates and the Mexican drug cartels?
- deleted 12y ago[deleted]
- deleted 12y ago[deleted]
- jeangenie 12y agoAre you asking because you plan on doing so? I'd be interested to hear what you find. Here's something to get you started: http://online.wsj.com/articles/j-p-morgan-fined-92-million-by-eu-over-cartels-1413907417 http://online.wsj.com/articles/j-p-morgan-fined-92-million-b...
- ganeumann 12y agoMany of the states that have legalized marijuana require that no part of that trade cross state borders (including growing it, packaging it, investing in it, etc.) (This may be true of all the states that have legalized it, but I'm not sure.) So the Mexican cartels can neither sell the stuff they grow in Mexico in the states nor own the storefronts legally. Doesn't mean they can't do it illegally (they seem to be good at hiding their illegal activity, after all) but they can't go legit.
- jeangenie 12y agoMy assertion is that, with the backing of enterprises raking in 12 figures annually, it's within their operational capability to obtain all the necessary parts to do exactly that. To be fair, I think it's entirely possible that there are enough savvy businessmen in the cartel to realize that it's wisest to prepare for any number of likely outcomes of legalization. Just imagine Goldman Sachs with more beheadings.
- eam 12y agoNothing would stop them, but there would less of an incentive in such business considering the profits wouldn't be as enormous as they are now in the underground market. Profits are huge because the supply is low (and risky) and the demand is high. Legalization, I would think would bring up the supply, after all it would be legal to farm it in mass-production just like tobacco, dropping prices significantly.
- mentat 12y agoThey're already heavily invested in Bay Area real estate according to my contacts.
- marcosdumay 12y agoThere isn't as much profit in doing a legal activity.