Consumer theory

Cheap weed in Washington State after legalisation causes glut in supply

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Washington State legalised cannabis?and in the first year growers rushed to market hoping to make a killing…predictably there was an over supply and prices dropped through the floor.

Have you ever been tempted to buy your dog a truckload of steaks just to see if there was a limit to how many of them they could eat at just one sitting? Well when marijuana became legal in the state of Washington, we were similarly?curious about whether there was?a theoretical maximum amount of pot that its residents could smoke? and now our questions have been answered.

The Associated Press, via ABC News, reports that marijuana sellers in Washington are actually suffering from large unsold?surpluses of pot, as supply is now vastly greater than demand for the demon weed inside the Evergreen State. ? Read more »

More on Labour’s power lies

Yesterday we blogged about how out of whack David Cunliffe’s power graph was. We presented a nother view from the same data.

Another reader has emailed with his thoughts.

Cam

Haven’t really followed the arguments around?power?prices. But what really grinds my gears is bad data analysis. I have done quite a bit of normalizing of data in my time and although it is a powerful tool, it has to be used with caution because it can really skew the data. As soon as I saw Labours press release I was suspicious about why they chose to normalize to the date they did.

Thanks to previous correspondent who made the raw data easily available, I normalized the data to 1990, as this was the closest data point to the reforms that people complain about. Also have blocked out via color who was in?power. Because of the data, I have “logged” the y-axis, so the changes are non-linear wrt this axis.

NZ is in black / bold. Shows that the price rise was not due to the early 90’s reforms. As there was almost no price increase from 1990 to year 2000. Furthermore the price was increasing before the reforms, then had reduced increases post reforms. So it is impossible to blame the reforms for the price increases.? Read more »

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