Let’s begin with the great book A Splendid Exchange By Bernstein, an author of three books at the time I bought this a financial theorist and historian who in this book tells the story of trade how this shaped the world, what I found most interesting is his telling the idea that investment follows low wages where investment happens where labor prices for work needed is cheapest very much so where yiur dealing with low skilled or unskilled labor.
One might ask what does this to do with Hemp?
Easy, as i write this the great state of PA has legislated Medical Marijuana making this by my count State number 26 to do so.
Of course with other effects from this law, more Marijuana for this will be needed, this must be grown etc for use in this State. How big of a market will PA be for Marijuana in say two years ? 5 Million 10 Million more?
From a Podcast I heard on Cannia-insider the number of $30 an hour was brought up by a guest ass being paid to even some types of unskilled labor in the State of CA for jobs in the Hemp field.
Just for fun lets go along with that number above, wow talk about high prices a lot of money for companies to spend bring Marijuana to market (unlike Hemp where machinery is far more used plus green houses are not needed nor used) a lot of cash spend every day on unskilled labor.
So let’s add more information to this:
Read the great book Narco-Nomics by Tom Wainwright he looks at the Drug trade as a business vs Crime and how as a business the trade as a whole and segments of act as any other being Agriculture or making Cars many of the same economic laws bear true
The biggest on being cost of labor will be reduced when it can as long product does not suffer.
So lets turn to Mexico as we see Mexico start the process of legalizing hemp from not only the Courts but long time Mexican leaders like V. Fox calling for at least industrial hemp to be legal should see Hemp in all forms being legal in Mexico in a few yeas ( I project 5) then be Katy bar the door.
The same labor you pay $15 an hour for min wage in CA now will cost you if your being nice $15 a day in Mexico
Why then set up shop in CA when you could do the same in Mexico for pennies on the dollar costs in the USA?
Think of the hundreds of millions flowing to Mexico from grows to processing to tourism and then some.
Thinking we will see very soon the beginnings of the infrastructure need to make Hemp happen in Mexico very soon