Why will the e-Cigarette Market be Any Different?

[zoiDman]

"Rather than make cannabis a Main Street fixture, California’s strict regulations have led most industry operators to close shop, flee the state or sell in the state’s illegal market that approaches $8 billion annually, twice the volume of legal sales.

Local government opposition, high taxes and competition from unlicensed businesses are complicating California’s push to build a thriving legal market."

California’s legal weed industry can’t compete with illicit market

Funny How CA Legislators/Regulators Ignore this. But are doing Everything to Ensure the Same Thing happens to the e-Cigarette Nicotine Market.

 

[X-Puppy]

Money grows on tree's, but not when its taxed and regulated out of existence. It's almost impossible to run even a regular business in California for this reason.

Making what used to be considered good money (say 60k+) only puts you just above poverty level in Cal. and similar states.

I sometimes wonder if politicians are so naive that they really believe most of us buy their bull....? I guess they don't really care as long as they get their piece of the pie.

OK-OK my rant for the year is over. Back to unicorns and rainbows!

 

[zoiDman]

What I see happening Many Times is what is called the "Falling Returns Cycle".

And that is where some Government Agency makes a Simplistic Projection of Tax Revenues based on a Function of How Many People use the Product times How Much Tax is on the Product.

But the Problem is that with the Total Reg Costs and Taxes, now the Product costs More that what it did/does on the Black Market. So the tax revenues Fall Short of Projections. Because it is Cheaper to buy off the Black Market. So the Number of Buyers isn't what was Projected.

So to Fix this Shortfall, they Increase the Tax Rate. It's the Less Buyers but a Higher Tax is the Same and More Buyers at a Lower Tax naïve thinking. But this only makes the Product even More Expensive. So even More People shift into the Black Market. And even Less Taxes are collected. And the Cycle just keeps Repeating and Repeating.

CA actions of "Legalization" have provided a Perfect Infrastructure for the Black Market to Expand Exponentially. And instead of Acknowledging that you are making Basic Economic 101 Supply and Demand Mistakes, they simply Ignore the Problem as the Black Market thrives.

And move on to "Fixing" some other "Problem". Like Nicotine e-Cigarette Use. With the Same Results.

 

[somdcomputerguy]

Maybe the suits need to learn what the phrase, "Don't count your eggs until they've hatched" means..

Learn. Ya right..

 

[somdcomputerguy]

Maybe the suits need to learn what the phrase, "Don't count your eggs until they've hatched" means..

TinWeb - chicken-and-egg


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[zoiDman]

California pot companies warn of impending industry collapse

Sky High Taxes and Extreme Regulations.

Once again... Why will the e-Cigarette Market be any Different?

 

[zoiDman]

Marijuana wars: Violent Mexican drug cartels turn Northern California into ‘The Wild West’