The Preposterous Tomato Model for Marijuana
November 2, 2012 § Leave a comment
“[L]egal pot would be amazingly cheap. In fact, midgrade stuff would be so cheap that it might make sense for businesses to give it away like ketchup packets or bar nuts.”
 Matthew Yglesias, “Get High for Free,” http://www.slate.com/articles/business/moneybox/2012/07/how_much_would_legal_marijuana_cost_a_new_book_says_it_would_be_nearly_free_.html (July 18, 2012).
Lots of stoners (some of my best friends are stoners, or were) want marijuana untaxed and unregulated, but it ain’t gonna happen, because the public won’t sit still for it. Marijuana won’t be ridiculously cheap — after inevitable regulatory costs and taxes. The stoners entertain the tomato model (no tax, no regulation) as an ideal. Prohibitionists use the tomato model as a scare tactic.
What if the federal government quashes tax collection? A prohibition premium will remain in place to keep marijuana more expensive than tomatoes — or ketchup.