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- Political Discussion / Debate
-- Legalize the weed, yo!
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Originally posted by priveye03 So one would think, lower demand + drop in profits for the organizations would lead to an increased price.

Sounds like a self-fulfilling prophecy, though lower demand almost always leads to lower prices by simple economics (with the reaction being somewhat dependent on elasticity of demand). The drop in profits from the supply side of the equation would likely lead to the marginal seller dropping out of the market due to his business no longer being profitable; thus lowering supply, eventually stabilizing the market clearing price at a lower level.

quote:

Originally posted by priveye03 No offense taken =P. I think it is definately possible that the price would drop, but I think since a lot of the income associated with marijuana that the organizations selling (time out there is a girl orgasming in the song I'm listening to and I can't type....ok there we go) such illicit drugs would be cut out, one would think that they would raise, not lower, the prices of the "hard drugs," in order to make up for lost profits. Just a possibility. Plus a couple studies I have read said that rates of hard drug use in 'decriminalized' states actually were lower then those of non-decriminalized states. So one would think, lower demand + drop in profits for the organizations would lead to an increased price.

In economics, certain things happen with prices. Sometimes when a product isn't wanted all that much, the price on it actually goes up instead of going down. because the factory is not making that much money if it because it's not sold that often they raise the price so that when it is sold it makes it up for them. The best example is third world countries where things that cost here in America are tripled or so because they are not bought too often.

No one can really tell because if we knew the whole inner workings of the black market...well there wouldn't be a black market

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Originally posted by Lepanto though i smoke pot myself i wouldn't want it legalized. mainly because our culture ALWAYS abuses what's given. And the last thing I want is my bus driver high lol.

Right, good logic there. Because in Amsterdam 1 bus crashes every hour.

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Originally posted by DJ Shibby Right, good logic there. Because in Amsterdam 1 bus crashes every hour.

do you know how to read previous posts or do you just like to have some input for the sakes of having some input? Please show me where i DIDN'T say that we are a different culture oh and people in america have NEVER drank behind the wheel of a school bus or the ferry in NYC where the guy crashed it and killed dozens and injured even more.

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Originally posted by Lepanto do you know how to read previous posts or do you just like to have some input for the sakes of having some input? Please show me where i DIDN'T say that we are a different culture oh and people in america have NEVER drank behind the wheel of a school bus or the ferry in NYC where the guy crashed it and killed dozens and injured even more.

You are the ones creating the culture...

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Originally posted by St_Andrew You are the ones creating the culture...

yet somehow i fail to fathom how everyone is going to smoke weed...

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Originally posted by Lepanto In economics, certain things happen with prices. Sometimes when a product isn't wanted all that much, the price on it actually goes up instead of going down. because the factory is not making that much money if it because it's not sold that often they raise the price so that when it is sold it makes it up for them. The best example is third world countries where things that cost here in America are tripled or so because they are not bought too often. No one can really tell because if we knew the whole inner workings of the black market...well there wouldn't be a black market

I really don't understand this argument at all. Can you please elaborate?

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Originally posted by occrider I really don't understand this argument at all. Can you please elaborate?

honestly? ironically enough i wrote that while being stoned and after a talk with a friend of mine who's working on his masters in economics and some other shit. Anyways, from what i understood, it's basic belief that a product, when losing it's appeal or whatnot, will become cheaper right? like a TV or a playstation, etc. However, when the item becomes so unappreciated it's value goes up because so little people want it that the maker has to raise to price of it to make up for the fact that they aren't sold everyday. A good example would be retro items that are still released like those huge 80's boom boxes. I remmember when that band Saliva were releasing one of their first albums, the vocalist wanted to have one in the cover art, so they tracked one store down where that thing was like 500 bucks.


All that rant is just to show examples of prices differing after certain things happen such as, let's say, one of the majorly used drugs becomes legalized, what happens to the rest?

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Originally posted by Lepanto honestly? ironically enough i wrote that while being stoned and after a talk with a friend of mine who's working on his masters in economics and some other shit. Anyways, from what i understood, it's basic belief that a product, when losing it's appeal or whatnot, will become cheaper right? like a TV or a playstation, etc. However, when the item becomes so unappreciated it's value goes up because so little people want it that the maker has to raise to price of it to make up for the fact that they aren't sold everyday. A good example would be retro items that are still released like those huge 80's boom boxes. I remmember when that band Saliva were releasing one of their first albums, the vocalist wanted to have one in the cover art, so they tracked one store down where that thing was like 500 bucks. All that rant is just to show examples of prices differing after certain things happen such as, let's say, one of the majorly used drugs becomes legalized, what happens to the rest?

You may be mixing up scarcity with a general lack of demand. While one would almost always create a scenario where something sells at a premium, the other generally is followed by declining prices. The premium price associated with retro stuff, IMO, is due to a revival in demand because it's a fad. Coupled with a general scarcity of retro products (they don't make anymore of them so quality originals are rather scarce), you see the sudden price increases in recent years.

Also, the use of electronics as an example of declining prices is probably a bit flawed, simply because electronics tend to follow a wierd path of generally getting cheaper despite increasing demand due to greater efficiency in their manufacturing process. Computers and electronics have gotten much cheaper over time, which doesn't necessarily mean that their profitability has declined (though it probably has to some extent), rather their costs of production have also plumetted. The R&D is heavy on the front end, but after several generations of manufacturing, yields improve, the technology gets cheaper, etc, etc, etc.

See that's what I thought untill I started to see it happen more and more. For example, shortwave and transister radios are pretty damn outdated so we sell them for about 70+. yet alot of people still buy them so i asked my boss about this and he said that no matter what there's still that one person out there who'd want it


I'm merely demonstrating one aspect of the market that cannot be overlooked when you are thinking about the future, i think you can agree with me on that, however unlikely it seems heh.

Agreed with all that has been said. I also think that when the demand for the non-government regulated marijuana drops (not market demand, just individual supplier) the excess supply will grow to a point that a lot of the non-regulated (quality control etc) marijuana that goes unsold will be an even stronger motivation for the suppliers. Lower demand + lower price + increased excess supply = lack of profit for the suppliers, especially if they are operating on the margin, leading to an exit from the market. Correct me if I'm wrong (I've only had 1 semester of economics and my professor was hungover half of the time).

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