Marijuana legalization is already making Mexican drug cartels poorer
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We're still not sure of the full impact of marijuana legalization, in terms of pot use and abuse, in the states that have legalized. But a report from Deborah Bonello for the Los Angeles Times shows one way that legalization for recreational and medical purposes is working:
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The loosening of marijuana laws across much of the United States has increased competition from growers north of the border, apparently enough to drive down prices paid to Mexican farmers. Small-scale growers here in the state of Sinaloa, one of the country's biggest production areas, said that over the last four years the amount they receive per kilogram has fallen from $100 to $30.
The price decline appears to have led to reduced marijuana production in Mexico and a drop in trafficking to the U.S., according to officials on both sides of the border and available data.
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This was a predictable outcome of legalization, but still a big deal and welcome news. One of the major arguments for legal pot is that it will weaken drug cartels, cutting off a major source of revenue and inhibiting their ability to carry out violent acts — from mass murders to beheadings to extortion — around the world. And cannabis used to make up a significant chunk of cartels' drug export revenue: as much as 20 to 30 percent, according to previous estimates from the Mexican Institute of Competitiveness (2012) and the RAND Corporation (2010).
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