Californians had high expectations when they overwhelmingly voted in 2016 to legalize adult-use cannabis with Proposition 64: the Control, Regulate, and Tax Adult Use of Marijuana Act. Over time, thousands of shops would generate millions of dollars in tax revenues. State government was committed to training and financial assistance for entrepreneurs, minorities, and marginalized people. Jobs would be created. Investors would be generous. What could possibly go wrong?
Turns out quite a bit. High taxes and stringent regulations are squeezing nearly every sector, say frustrated cannabis entrepreneurs, who warn that the burden is making their businesses unsustainable. Despite wide support on the state-wide ballot, city and county-level NIMBYism (not in my backyard) has restricted licensing and hobbled retail sales—hollowing out the promise of tax revenue and jobs.
- Competition from the new licit market has driven up prices and availability on the medical side.
- Social equity programs are toothless or don’t exist.
- And the illegal market thrives.
For complete article go to Four Years After Legalization, California Has Had Unexpected (and Often Disappointing) Results