Cartels Face an Economic Battle

By , October 7, 2009 2:33 pm
Weapons seized by the mexican 'Policia Federal...
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ARCATA, Calif. — Stiff competition from thousands of mom-and-pop marijuana farmers in the United States threatens the bottom line for powerful Mexican drug organizations in a way that decades of arrests and seizures have not, according to law enforcement officials and pot growers in the United States and Mexico.

Illicit pot production in the United States has been increasing steadily for decades. But recent changes in state laws that allow the use and cultivation of marijuana for medical purposes are giving U.S. growers a competitive advantage, challenging the traditional dominance of the Mexican traffickers, who once made brands such as Acapulco Gold the standard for quality.

Almost all of the marijuana consumed in the multibillion-dollar U.S. market once came from Mexico or Colombia. Now as much as half is produced domestically, often by small-scale operators who painstakingly tend greenhouses and indoor gardens to produce the more potent, and expensive, product that consumers now demand, according to authorities and marijuana dealers on both sides of the border.

The shifting economics of the marijuana trade have broad implications for Mexico’s war against the drug cartels, suggesting that market forces, as much as law enforcement, can extract a heavy price from criminal organizations that have used the spectacular profits generated by pot sales to fuel the violence and corruption that plague the Mexican state.

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One Response to “Cartels Face an Economic Battle”

  1. Fred Evil says:

    Simple. You want to hamstring the Mexican cartels overnight, and provide AMERICAN farmers with a real cash crop?


    After a 40 year ‘War on Drugs’ NO ONE can say it has had ANY affect, can they? If they think it’s done ANYTHING, they either work for it, or are so prohibition-minded they can’t see the forest for the trees.

    NO, drugs aren’t good for you, but prohibition is WORSE.

    26 MILLION Americans used cannabis last year. With only 3 million prison beds, where does the DEA and ONDCP propose we put them all, if we managed to ‘win’ the ‘War on Drugs?’ WHERE?

    Bottom line is the WoD is UNWINNABLE. We CANNOT win the WoD.

    So instead of trying our darndest to flush 26 million Americans lives away, perhaps we ought to recognize the futility of this ‘War’ and think about reaping some tax money from an industry we CAN NOT make go away?

    Pragmatism works best, when your idealism fails.

    Stop oppressing nearly 10% of the American populace. STOP making the Mexican Cartels richer through the ignorance and futility of the DEA and ONDCP. They’ve failed, but they will NEVER admit it!

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