Legalization most likely means a lower price because of supply and demand.  Therefore, related crimes and "street justice" would likely be reduced, and old-school drug dealers would lose a heck of a lot of business.

 

That said, this only works if the states that legalize marijuana have a sustainable strategy.  In California, where recreational marijuana officially became legal in January 2018, the legalization rollout has been less than impressive.  Government officials had predicted the state would enjoy at least $185 million from excise and cultivation taxes in the first six months of 2018, but the actual number was just $82 million.  This missed financial forecast seems to suggest that there is still a flourishing black market in California, which is a problem because one of the most effective arguments for legalizing marijuana is that it will diminish the black market. 

 

Of course, this is not necessarily all of the state of California's fault.  After all, it will certainly be an uphill battle to get marijuana farmers –who have operated for years without taxes and regulation – to comply with new, more restricting rules.  For one it makes it much more expensive to grow their product.  Add to that the fact that many areas in California have banned commercial marijuana shops and/or added additional taxes, which creates a natural deterrent for coming out of the shadows.  We'll keep our eye on this.....

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Evidence:

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Michael R. Blood.  "Pot Taxes Pick Up in California But Still Far Off Target."  Associated Press.  15 Aug 2018

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