When special interest groups write regulations, consumers pay the price.
Nevada is home to casinos, impulse weddings, legal brothels, and, as of July 1, recreational weed.
Despite its reputation, Nevada has never been anything close to a free market paradise. Everything from the Las Vegas taxi industry to prostitution is controlled by a handful of politically-connected companies licensed to operate by the government.
This means exorbitant prices and unnecessary hassles for customers and businesses. And the latest industry to take hold—legal weed—is no exception.
Nevada Governor Brian Sandoval (R) recently declared a state of emergency because the state’s 37 licensed marijuana shops were running out of inventory. Why? The law legalizing recreational cannabis sales in Nevada granted an 18-month monopoly on distribution to liquor wholesalers, who lack the experience and infrastructure to transport marijuana. And most are too afraid to enter the market because they’re regulated by the federal government, and cannabis is still illegal on the federal level.
Continue with article: