March 16, 2022

"The cannabis industry, designed in part to help communities upended by the war on drugs, is being threatened by theft, racism and a market that is stacked against small operators."

That's the puzzling subheadline for "Oakland Cannabis Sellers, Once Full of Hope, Face a Harsh Reality" (NYT). The "industry" was somehow "designed... to help communities"? And then — who could have imagined? — it didn't turn out to be so helpful.

I haven't read the article yet, but I really wonder who produced this "design" and whether anyone really believed it would "help communities upended by the war on drugs." If there's systemic racism, why would the new design avoid racism?

Okay, now I have read it. Here's my excerpt, cutting all the personal stories and homing in on the stark and utterly predictable problems — robbery, banking, insurance, and taxes:

Applicants who live in areas that had a high number of drug-related arrests or who have a cannabis-related arrest record are given priority to receive [equity licenses to run cannabis businesses after California legalized the substance for recreational use in 2016]....

Forced to deal largely in cash, the businesses can be a tantalizing target for thieves.... During a wave of robberies late last year, the police never showed up to some of the crimes, business owners say....

Only a limited number of insurance companies are willing to cover the cannabis industry... because of the federal prohibition, and the few insurers operating in the sector are still trying to understand the “unique risk” that the businesses pose....

The robberies and property damage are compounding the cannabis industry’s other challenges, such as high taxes.

“Why would I want to transition to the legal market if I know I am going to go broke?” said Chaney Turner, a member of the city’s Cannabis Regulatory Commission.

Now, is this a problem of racism? People of color are receiving these "equity licenses" that give them a privilege to do business, but it's a business plagued with obvious problems. 

The people doing the business are stuck wondering whether a white person would have as much trouble getting the police and the insuance companies to help them deal with the predictable problem of robbery. 

If the person who gets the "equity license" used to sell marijuana illegally, the tax burden on a legal business might feel distinctly annoying.

But really, the state legalized cannibis for the benefit of the state — that's the assumption that everyone should begin with, especially anyone who's well versed in the theories of systemic racism. The capacity to flaunt "helping" the "community" was — like taxes — one of the benefits the state took for itself.

33 comments:

tim in vermont said...

Just accept it as the "best version" of reality and quit worrying about how it fits with other stuff they say.

The Cracker Emcee Refulgent said...

When most people in the community are POC's, all problems can be blamed on racism.

NorthOfTheOneOhOne said...

The people doing the business are stuck wondering whether a white person would have as much trouble getting the police and the insuance companies to help them deal with the predictable problem of robbery.

Probably not because they'd open up shop in a better part of town. The minority business owners could do that too, but then you get back into the whole "I make more profit if I sell illegally" thing.

Enigma said...

California = myopic policies to facilitate instant gratification.

Not news today, and not news back in the 1970s either.

Does it end with drug wars on every corner while everyone else moves away?

Static Ping said...

Golly, drug dealers discover that the government is not their friend. Again.

Though you do have to give them credit for the "racism" claim. The government does not particularly care if their regulation is unfair or their taxes too high. However, Democrats do perk up when the racism card is played. Not that they will necessarily do anything, mind you, but they will at least pretend to care. In the end, isn't that all you can ask for?

n.n said...

A policy of redistributive change, diversity [dogma] (i.e. color judgment, class-based bigotry) per chance rabid, and a single/central/monopolistic framework to normalize progressive prices and availability. Nice.

Michael K said...

Criminals are cheated by bigger criminals. News at 11.

Dan from Madison said...

"Oakland Sellers,..." fify

ColoComment said...

"Baptists & bootleggers" ... it never fails.

hawkeyedjb said...

"Now, is this a problem of racism?"

Go ahead, name something that isn't a problem of racism.

rehajm said...

Any mention in the article of the 'designed to help communities' strategy of not prosecuting serious crimes like robbery and grand theft?

I wager no...

stlcdr said...

If selling it legally is a problem, then keep selling it illegally. What are they going to get you for? Tax Evasion? That's white-people crime.

rcocean said...

Just rememeber Tobbacco is unhealthy, but Pot is just fine. In fact, its organic health medicine. And "Big cannabis" is making big $$$ - which was the plan all along.

When California going to legalize Meth, cocaine and heroin? Or has it already.

NorthOfTheOneOhOne said...

I read the article and it's a load of crap. I live in a reasonably upscale part of NW metro Phoenix and we have a dispensary about 2 miles from my house. I've seen people's receipts from that place. They take credit/debit cards as payment and even have a customer loyalty program. If anyone's having to exclusively take cash it's because the local clientele is more likely to deal in cash than in cards. This is exactly like the difference between my local Total Wine and some small liquor store in South Phoenix.

Iman said...

C’mon, Oaktown… always remember to never forget:

“Dope will get you through times of no money better than money will get you through times of no dope.”

Iman said...

Is it “intoxicating blasts of stupefaction” or “stupefying blasts of intoxication”… I forget…

Browndog said...

Legalization got stoners to the polls and elected a lot of far left democrats that resulted in tons of destructive laws and policies.

In other words, it worked like a charm.

If you like your medical marijuana card, you can keep your medical marijuana card.

Andrew said...

I became a pot-head in my junior year of high school, and that continued until my sophomore year of college, when I stopped completely.

I will share a few observations and opinions (but keep in mind my pot use was decades ago). I also realize some of these points contradict each other.:

1) For me, pot was addictive. I've heard all the arguments about pot not being an addictive substance, but I really did crave the stuff, and had a hard time when I couldn't find any. I became dependant on it as a coping mechanism, and experienced withdrawal symptoms.

2) For me, pot was a gateway drug. Again, I've heard all the contrary arguments. I'm just relating what was true for me. When a person becomes accustomed to one drug experience, it's natural to look for something new and more intense. Also, druggies hang out together, and form friendships centered on the drug. So there's eventually bound to be someone who says, "Hey, have you tried this yet?" That includes lacing pot with other substances.

3) For me, the anti-motivational response was very pronounced. This is one of the main reasons I stopped when in college. I had zero desire to accomplish anything when I was stoned all the time. It's a miracle I was admitted to a good school, and that I was able to do enough not to get kicked out. Once I stopped the pot, I actually started studying, doing well in classes, and fulfilling my responsibilities.

4) I've been around stoned people, and drunk people. I much prefer the company of stoned people.

5) I believe the effects of excess alcohol (especially continuous use) are far more deleterious than those from pot.

6) I think pot should be legal, but closely controlled. Especially these days when there is so much danger from contamination (fentanyl, etc.).

7) I think the negative ramifications of pot use (on the scale of individual users, and on the scale of societal consequences) are underestimated.

8) I think everyone in prison for pot use, possession or distribution should be freed and pardoned (unless their crimes involved violence).

9) I think pot should be researched for medical uses far more extensively than it is now. I also think some people should be encouraged to use pot to avoid self-medicating in other ways, and the stigma should be removed.

10) The best pot comes from Jamaica, Mexico, and Hawaii, in that order.

Temujin said...

First of all, I stopped when I saw the word "Oakland". No need for me to read on. Oakland is like saying "The Lost World". Still, I read on a bit.

I've read and heard so many things over the years on what legalizing cannibis would do for everyone. I'd never heard or read that it was designed to "help communities upended by the war on drugs". To me it was and will continue to be nothing but a cash cow for the states that allow it- and all states will allow it in time. It is literally only a matter of time before it's part of the national landscape.

But anyone who would think, let alone write a public column stating that legalizing pot in Oakland would lift up communities hard hit by drug trade don't know a thing about (a) Oakland, or (b) marijuana. And the California process of 'equity licensing' giving priority to previously drug convicted people, well...there's something so California about that it needs no further comment.

As to cash-only drug businesses wondering why they are so targeted for robberies and why they cannot get affordable (if any) insurance coverage? Well, go back up to my first sentence.

At some point we'll run out of degreed thinkers in this country. Until then it's every man and woman for him or herself. Any in-between genders will have to go on without me.

Maynard said...

Let's see if I understand this. We are giving dope dealing criminals preference in the ability to legally sell dope again. However, other criminals are taking advantage of them

The cause of this tragedy is ...

You guessed it ... Systemic Racism.

Roughcoat said...


n.n said... A policy of redistributive change, diversity [dogma] (i.e. color judgment, class-based bigotry) per chance rabid, and a single/central/monopolistic framework to normalize progressive prices and availability.

You write like a computer talks.

Michael said...

When Oregon's cannabis stores opened, bad guys quickly figured out that because of federal banking laws all these shops were a total cash business. Break-ins and robberies followed

MartyH said...

There are also too many sellers. I see a ton of billboards advertising pot products but (it seems) I never the same company twice-or even one company on the same billboard for very long.

FWIW there is a huge grow facility within a quarter mile of my office. There may be a hundred cars double parked along the roadin front of it. Someone’s making money…

Howard said...

By design, cannabis industry is Overregulationed and overtaxed makes the product overpriced.

Can you say rent seeking?

FullMoon said...

"I'm from the government and I am here to help"

Documentary including prolific grower in Northern California. Not gangster, more laid back hippie type. Decided to go legit. Regulations and aggravation ruined his business.

BarrySanders20 said...

This isn't even the usual regulatory capture where the established businesses co-opt government to hamstring smaller competition -- here, the corner sellers are not involved in protecting their market through government. Instead, they are reaping the benefit of excessive regulation by mere avoidance, which is what they have always done, and the regulations are killing the legal seller competition. Can't get insurance, can't use electronic payment for transactions, can't bank, and have to pay huge taxes on sales even on the cash that got robbed and that you cannot recover? What a shame!

If you were cynical, you'd think the government is actually aligned with the illegal sellers since the result favors the old guard status quo. And if this is the result of government action, dont the new rules say we must assume it is intended?

bobby said...

Just grow your own.

JAORE said...

So you can buy illegal pot for less money. And the state is highly unlikely to bother you about it.

Or you can go to a legal shop for more money. And the state will not bother you about it.

Decisions, decisions.

[Side note: I'll bet the pot vendors in Aspen, Colorado largely deal via credit cards.]

Bunkypotatohead said...

It used to be you called the police to investigate the pot dealer hanging around your neighborhood.
Now the dealer calls the cops to complain about the neighbors.

farmgirl said...

Pot is scary to me.
I have a schizophrenic older brother who self- medicated w/pot. Not a win/win situation.

Now, my almost 19yr old baby girl is digging pot- and dab pens. She’s not living w/us- moved out to live life on her own terms.
Drugs in the NEK are so bad. Lots of fentanyl laced everything everywhere.

I doubt the dispensaries are close by.
Good luck making bank off the legalization of illegal shit. The only reason? Uncle Sam’s fishing for his cut.

farmgirl said...

Andrew- so glad you’re motivated:0)

Andrew said...

Thank you, farmgirl. It's all relative. I'm still kind of lazy. I've never been a Type A personality. But at least I can hold down a job. ;-)

And most important, I'm motivated to keep commenting at Althouse.

Greg The Class Traitor said...

During a wave of robberies late last year, the police never showed up to some of the crimes, business owners say....

Of course not!
"Defund the police!"
"Policing in minority neighborhoods is racist!"

Why would the police show up, when there's no way they can win / succeed?