Business
California Legalization of Marijuana Will Have Major Impacts On Industry
Published
9 years agoon
(Via ZeroHedge)
As DataTrek’s Nicholas Colas reminds us, recreational marijuana sales become legal in California starting on New Year’s Day 2018. Given that one in eight Americans live in the state, this move will have major implications for the entire US legal cannabis industry.
So, to address any pent up investor questions, Colas has put together a list of 7 major points about the rollout in terms of regulations, taxes, revenue estimates, potential banking solutions, and employment consequences.
Dispensaries in California can finally start selling recreational cannabis on January 1st after voters passed Proposition 64 in November 2016. Even though some other states already allow legal retail cannabis (like Colorado and Washington), this is a game changer for the industry as one in eight Americans live in California. The state will have to go through a transition period, as recreational marijuana sales merge with the existing medical marijuana market. The latter is nearly two decades old and will also face stricter regulations. Nevertheless, the new market should help California’s economy and budget deficit.
Here are 7 major points we think you should know for the rollout:
#1 Who can buy and how much: Consumers have to be 21 or older to buy retail marijuana, can possess up to 28.5 grams of flower or 8 grams of cannabis concentrate, and can grow up to six plants. As in other states where retail cannabis is legal, people cannot smoke in public, only in a private home or a business licensed for on-site smoking.
#2 Number of licenses issued thus far: California’s Bureau of Cannabis Control has given some temporary licenses to retailers, distributors, microbusinesses and testing laboratories through its online licensing system. As of the Bureau’s press release on December 14th, it has issued just 20 licenses, but said it plans to issue “many more” before the 1st. Not only do dispensaries need a license, but also approval from local authorities. Here is the press release.
Retail cannabis won’t be available everywhere starting on the 1st of next month, however. It will take longer in some cities and counties, while some have banned cannabis stores. Leafly put together a helpful list on the status of California’s major cities. Although stores in San Diego, San Jose and Sacramento are expected to open on New Year’s, those in Los Angeles and San Francisco are delayed. LA will become the biggest US city with legal recreational marijuana sales. Here’s the list.
#3 Tax revenue/rates and the black market: The independent California Legislative Analyst’s Office projects that tax revenue could range from the “high hundreds of millions of dollars to over $1 billion annually”. This will help California’s $3.3 billion revenue shortfall and will fund “drug research, treatment, and enforcement, health and safety grants addressing marijuana, youth programs, and preventing environmental damage resulting from illegal marijuana production.” Here’s a link with the breakdown.
Effective tax rates on retail marijuana could run as high as 45% when taking into account state and local taxes, according to Fitch Ratings. This includes a “15% state excise tax, state cultivation taxes of $9.25 per ounce for cannabis flowers ($2.75 per ounce for leaves), and state and local sales taxes ranging from 7.75% to 9.75%. By comparison, Oregon taxes nonmedical cannabis at approximately 20% and Alaskan taxes range from 10% to 20%.”
Fitch’s report highlighted concerns that such high taxes will allow black market prices to remain competitive. Colorado, Washington and Oregon all lowered their marijuana taxes after legalizing the drug to challenge the black market, for example. Here’s a link to the report.
#4 Size of the market: California’s legal marijuana market could reach over $5 billion, according to a state-sponsored study by the University of California Agricultural Issues Center. As of November, total annual sales of medical marijuana were $2 billion and represented about 25% of total marijuana sales, while the balance was illegal sales worth $5.7 billion. The study expects that allowing legal recreational marijuana sales will lower medical marijuana sales to $600 million since adults will no longer have to visit a doctor and pay for a medical card.
The study also found, however, that 29% of all marijuana consumers may stay in the illegal market to dodge taxes. They think legal retail use will account for 61.5% of the overall market, while illegal purchases will make up about 29.5% of the market and 9% for medical purchases.
Moreover, the report estimated that the new market could create over 1,200 jobs for testing and handling legal marijuana. The new market will also be a boon to tourism. Their comp: estimates show tourists spend $7.2 billion a year on wine in California. Source: Los Angeles Times
#5 Supply versus demand: We would not be surprised to see demand outpace supply after opening, as demonstrated by early sales of legal recreational marijuana in Colorado and Washington. When Las Vegas dispensaries began selling retail cannabis this past July, they started running out after just a few days. California’s potential problem could be compounded by the state’s wildfires, which have damaged or wiped out many grows in Northern California, where marijuana is mostly produced in the US. This could lead to high prices, but as demonstrated in Colorado and Washington these dissipate over time as the market adjusts and matures.
#6 Relationship with banks: Given that marijuana is still illegal Federally, many banks do not accept marijuana-related business for fear of legal headaches or even losing their charter. Some banks and credit unions have accepted the risk in states like Colorado, but the legal industry mostly conducts business in cash. This has posed serious security risks related to storing and transporting money, and this is an especially relevant problem in California where revenue projections grow to $7 billion annually by 2020.
Therefore, California officials have been meeting with banks and credit unions with the hopes of creating a network of financial institutions that will bank with marijuana businesses and ensure special compliance. Their idea is to pick a central correspondent bank and set up a clearinghouse that provides strict oversight. Some banks have expressed interest, but others still think it is too risky. Source: Los Angeles Times
#7 Employment and marijuana-related crime: Employers can still enforce anti-drug policies in California since marijuana is illegal on the Federal level. On the flip side, hundreds of thousands of people could have their drug convictions – from small infractions to serious crimes – cleared or reduced due to a provision in the bill. This will help individuals compete for better work opportunities, especially low-income minorities. The California Judicial Council shows at least 4,500 people have filed petitions on this point as of September. Source: The Washington Post
In sum, California will serve as an important case study in moving the needle on national marijuana legalization if all goes well in the US’s largest state. Many investors avoid the space because it is federally illegal. Success in California could portend faster legalization elsewhere and open up legal investment opportunities in a relatively new multi-billion dollar industry. California will also help investors ascertain legal marijuana’s impact on other industries, such as beer, liquor and pharmaceutical sales. Only time will tell, we will keep you updated in the meantime!
Business
President Trump Secures Iowa Largest Steel Plant in U.S. History
Published
2 weeks agoon
September 28, 2026
WASHINGTON — President Donald Trump announced Monday that Mesabi Metallics will build a roughly $15 billion steel mill in southeast Iowa — a project the White House calls the largest steel plant ever constructed in the United States.
Speaking in the Oval Office alongside company executives and administration officials, Trump framed the deal as proof that American manufacturing is coming back.
“Today, we’re thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa,” Trump said. “It’s the largest plant, one of the largest plants in the world, but it’s the largest plant in America by far.”
“In other words, this steel will be mined, melted and made right here in the USA,” he added. The project is expected to create up to 6,000 construction jobs, nearly 2,000 manufacturing and mining jobs, and $95 billion in economic activity, according to the White House.
The mill is planned for Lee County in southeast Iowa, near the Mississippi River, which the company intends to use to move iron ore from Minnesota. Rep. Mariannette Miller-Meeks, whose district includes the county, confirmed the location and said she joined the Oval Office announcement. Iowa lawmakers have discussed a possible special session to consider tax incentives before the November midterms.
Mine to mill, all in America
Mesabi Metallics, based in Nashwauk, Minnesota, and owned by India’s Essar Group, will feed the Iowa plant with iron ore from its new mine on Minnesota’s Mesabi Iron Range — the first new U.S. iron ore mine in about 50 years. The mine represents more than $2.5 billion in investment and is expected to produce about 7.5 million tons of direct-reduction-grade pellets a year and support roughly 350 jobs. Combined with the Iowa mill, the two projects total nearly $18 billion.
The company describes the supply chain as “100% American steel: mined, melted and poured in Minnesota and Iowa.” The U.S. Export-Import Bank has provided major financing for the Minnesota expansion.
The Iowa plant’s first phase is designed for 7.5 million tons of steel a year, with capacity later rising to 10 million tons — more than any other U.S. mill, according to the White House. First steel is targeted for 2030. Officials say it will use modern direct-reduced iron (DRI) and electric-arc furnace technology and can supply high-grade steel for defense, vehicles, shipbuilding, energy, and infrastructure.
Mesabi CEO Joe Broking called it “a major moment for U.S. made steel, combining the highest quality direct-reduction grade iron ore pellet from Minnesota’s Iron Range with the most advanced DRI to EAF steelmaking technology in Iowa.”
Permanent employment at the Iowa mill is projected at least 1,750 jobs. Some local reports put pay above $49 an hour. Construction is expected to begin soon.
Political and industrial context
The announcement comes weeks before the Nov. 3 midterm elections and after the administration raised steel tariffs to 50%. The White House is presenting the project as the first “mega” steel plant built in the United States since the 1960s and as evidence that tariffs and an America-first industrial policy are drawing capital back home.
White House spokeswoman Taylor Rogers said: “President Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs. Today’s announcement underscores the President’s historic efforts to revitalize the U.S. steel industry — supporting local communities, strengthening supply chains, and protecting our national security.”
Iowa Gov. Kim Reynolds welcomed the news: “American steel is BACK! … We’re proud to be the future home of the largest steel investment in US history—creating thousands of quality jobs, strengthening our economic trajectory, and ensuring strategic goods are Made in America.”
Commerce Secretary Howard Lutnick, EXIM Bank Chairman John Jovanovic, Mesabi Chairman Rewant Ruia, and Iowa officials including Sen. Joni Ernst attended the event.
U.S. raw steel output was about 82 million tons in 2025. A 10-million-ton Iowa mill would represent a significant share of national capacity and shift more production toward the Midwest.
The project still faces the usual hurdles of a multi-year industrial build: permitting, infrastructure, power supply, and state incentives. Production is four years away. But the administration and the company presented Monday’s announcement as a completed deal and the start of construction, not a concept.
For Iowa’s southeast corner and for a steel industry that has spent decades watching mills close, the numbers are large: billions in private capital, thousands of jobs, and a fully domestic mine-to-mill chain the White House says will not rely on foreign ore or foreign mills.
Business
Enjoy Your Tasty Wheat: How AI Corporate Greed is Killing Humanity
Published
8 months agoon
February 16, 2026
Why the elite have decided it’s better to feed machines than humans.
We have a lower class of CEOs. And AI is making it worse.
In the past, these titans of industry would invest in their communities: libraries, public works projects, parks, or actual philanthropy.
Today’s C-suite “geniuses” engage in fake activism, bribery disguised as donations, and a complete nihilism from the communities they proclaim to serve at the safety of their gated communities.
It used to be a source of great pride for an owner to discuss how many employees they have. They would boast about how they put food on the table for families. They would talks about benefits, and how well they take care of their workers. Hell, they used to even describe them as “family.”
Now, they can’t wait to tell shareholders how they automate everything themselves, outsource to foreign countries for pennies on the dollar, and utilize AI to cut their entire labor force (we will get to this soon.)
The common thread is that those at the top are completely divorced from their workforce, the very people that happen to also be their consumers.
This was the situation largely even before AI. It’s gotten worse. They are absolutely foaming at the mouth to displace workers.
The only way to describe it is a race to the bottom. Investing millions into replacing humans with AI. This is already happening, and the reward has been big short-term gains from cutting jobs that look like more profitability to investors.
What’s more is that these AI data centers need billions of gallons of water, insane amounts of electricity, and tons of facilities to expand growth. It’s so astronomical they’re talking about moving it into space.
Think about it for a minute: companies would rather provide “drinking” water, “feed” electricity, and pay to “house” MACHINES instead of paying a living wage to people.
In fact, it might even be cheaper to pay a living wage. That isn’t stopping industry leaders from chasing their human-less dreams, despite it taking less energy and resources for humans. Yet they’re still choosing machines.
They are even willing to operate at a loss simply for the idea that they can save the cost of paying a wage.
There are a few outcomes that are possible:
Best case: AI hype is exposed as overblown and companies understand that it’s simply a tool and they need actual operators behind the steering wheel. AI starts creating more jobs. It seems unlikely, but given that AI in actuality produces more slop than creative, it’s possible.
Worst Case: The arms race of displacing workers continues. Their greed hasn’t ever really showed signs of waning. To supplement the slop it creates, they will use freelance labor from countries like India to extinguish the fires it creates and justify not needing a full time employee. They will stop at nothing to chase their goal of a technocracy to increase profits. (Note: They think they don’t need you to even buy their products with the top 1% buying 50% of the goods.)
They trained AI on your work, fired you to save money, flooded the world with soulless garbage, empty warehouses, and call it innovation.
To them I say: enjoy your tasty wheat.
Title: America’s Transition: From Shopping Mall to Manufacturing Hub 2.0
In the past few decades, America has often been described metaphorically as a giant shopping mall or auction house, where consumption and commercialism have dominated the landscape. However, with the rise of the Trump administration and the ambition to “Make America Great Again,” a new vision is emerging—one that aims to transform the nation into the world’s greatest manufacturing hub ever seen, leveraging AI, blue-collar labor, and a combination of innovative technologies.
The shift from a consumer-driven economy to a production powerhouse signifies a strategic move towards self-sufficiency, economic resilience, and global competitiveness. This transformation is not merely about revitalizing industries of the past but embracing cutting-edge technologies and sustainable practices to redefine the future of manufacturing.
At the heart of this evolution lies the integration of artificial intelligence (AI) into manufacturing processes. AI-driven automation streamlines production, enhances efficiency, and reduces costs, enabling American manufacturers to compete on a global scale. By harnessing the power of machine learning and predictive analytics, businesses can optimize supply chains, minimize waste, and customize products to meet diverse consumer demands.
However, the vision for America’s manufacturing renaissance extends beyond technological innovation. It embraces a diverse workforce, blending the traditional blue-collar skillset with the expertise of engineers, data scientists, and software developers. This fusion of talent creates a dynamic ecosystem where creativity, problem-solving, and collaboration drive continuous improvement and sustainable growth.
Moreover, the resurgence of American manufacturing is not confined to a single sector but encompasses a broad spectrum of industries, from automotive and aerospace to electronics and renewable energy. By leveraging cross-disciplinary expertise and fostering strategic partnerships, the United States can position itself as a global leader in advanced manufacturing, setting new standards for quality, innovation, and sustainability.
One of the key strengths of this manufacturing transformation is its adaptability and resilience. In contrast to the volatility of global markets and supply chains, a robust domestic manufacturing base provides stability and security, mitigating risks associated with geopolitical tensions, trade disputes, and natural disasters. By decentralizing production and embracing local sourcing, America can reduce its dependence on foreign imports and safeguard its economic sovereignty.
Furthermore, the transition towards a manufacturing-centric economy aligns with broader societal goals, such as job creation, workforce development, and regional revitalization. By investing in vocational training programs, apprenticeships, and re-skilling initiatives, the United States can empower individuals from diverse backgrounds to thrive in the digital age and secure meaningful employment opportunities in the manufacturing sector.
As America embarks on this journey towards manufacturing excellence, it must also prioritize sustainability and environmental stewardship. By embracing eco-friendly practices, renewable energy sources, and circular economy principles, manufacturers can minimize their carbon footprint, reduce waste generation, and preserve natural resources for future generations.
In essence, the vision of America as the world’s greatest manufacturing hub represents a paradigm shift—one that transcends partisan politics and embraces a collective aspiration for progress, prosperity, and shared prosperity. By harnessing the transformative power of AI, blue-collar ingenuity, and interdisciplinary collaboration, the United States can reclaim its status as an industrial powerhouse and pioneer a new era of manufacturing innovation on the global stage.
As the nation embarks on this ambitious journey, it must remain steadfast in its commitment to inclusivity, sustainability, and technological leadership, ensuring that the benefits of the manufacturing renaissance are felt by all Americans and resonate across borders, shaping a brighter and more prosperous future for generations to come.
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