November 10, 2007
Superfine dynamite from California

As we know, resource mobility is a substitute for mobility of goods. The Economist provides a case in point:

To supply outdoor [marijuana] plantations, rivers are dammed and water piped as far as two miles. Plants are nourished with fertilisers and tended by workers brought to America specifically for the purpose. Ageing hippies are responsible for only a few such operations. Kent Shaw, a state narcotics officer, reckons four-fifths of outdoor marijuana plantations are run by Mexican criminal gangs.

Indoor factories, by contrast, are largely the province of East Asian entrepreneurs. They prefer to buy houses rather than rent them, to avoid the attention of landlords. ... Like good horticulturalists, they propagate strains of the plant that produce a high proportion of tetrahydrocannabinol (THC, marijuana's active ingredient) and speed their growth by means of heat and artificial light.

Why the boom? ... The likely explanation is a steady tightening of America's borders after the terrorist attacks of September 11th 2001 and the panic over illegal immigration. California used to import high-grade marijuana from Canada and low-grade weed from Mexico. Both routes are now more risky. As a result, Asian gangs have moved south from British Columbia, where they dominate the hydroponic trade. Mexican distributors, who may handle cocaine and methamphetamine as well as marijuana, have diversified into production.

Posted by Wilson Mixon at 03:51 PM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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