California's illegal pot business is booming

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Ever since California legalized pot in 2016, it has been a disaster for the pot industry and for law enforcement, which continues to bust illegal growers and dispensaries.

"But the exact opposite has happened. The illegal market has blown up since California legalized marijuana because the demand has shot up so high due to great marketing. We know marijuana's a lot worse than people think it is. But, you know, the prevailing notion is that it's no big deal," Sabet said.California's problem begins with economics. Seeing a cash cow, lawmakers, including Gov. Gavin Newsom, supported propositions legalizing the drug, despite a federal ban.

Matthew Schweich with the nonprofit cannabis reform organization Marijuana Policy Project, says California is to blame for killing the golden goose."We spent a century making cannabis illegal and driving people into an illicit market. Then it is legalized, but the tax rates are too high. It's just a simple cost analysis," said Schweich."People can purchase cannabis for cheaper than going to a regulated licensed business because the tax rate is too high.

"There's such a large scale of illegal cannabis businesses that come in here we have to shut these places down," says LAPD's Boylls.

 

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And there are homeless all over the state to prove it.

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