Why would it cost so much more — by a huge factor — to produce marijuana than it does oregano or sage or some other domestic herb? That's a real assumption in some key reports. Jacob Sullum asks if High Marijuana Taxes Could Derail Legalization Plans. (via Andrew Sullivan's The Premium On Legal Weed).
Sullum says that per Washington State Consultant Report, it will cost $2 gram to produce marijuana, in a legal facility. That is just real practical cost of farming the goods.
Translate $2/gram and
at 28 grams to the ounce
28 x $2/gram is $56/ounce of marijuana.
That is production cost, supposedly.
I can buy McCormick's McCormick Oregano Leaves at AmazonFresh for $5.61 per ounce ($7.69 jar) and that rings a bell at what dried culinary herbs sell for when I browse the local supermarkets.
The $5.61/oz includes costs for farmer, packaging, wholesaler, retailer etc etc. Let's assume that most of the cost of the retail price is production. (I don't believe it but it's late at night and no one to call.) Let's play with the idea that it costs $5.60/ounce to produce oregano. (The numbers are pure serendipity. Honest.)
$5.60 per ounce to produce oregano
$56.00 per ounce to produce marijuana
Make sense to you? Am I doing the math wrong?
Why should there be such a huge factor (ten times as much) between producing oregano and producing marijuana? Not saying there isn't; the consultant is a reputable one. But commonsense says otherwise that weed is so expensive to grow when you strip out all the illegal aspects.
I don't get it.