Marijuana prices across America are expected to drop - by as much as 50%, all because Oregon miscalculated and produced too much weed.
Right now the State of Oregon is sitting on more than 1 million pounds of unsold marijuana. One tub of marijuana costs $20,000 in New York, but the same tub costs only $7,000 in Oregon. Economists believe that the excess weed in Oregon will cause the local weed prices in states like New York & Georgia to drop by more than 50% - until all Oregon's excess weed is bought up.
"What we have is a market-access problem, and it's a political problem," Adam Smith, the founder and director of Craft Cannabis Alliance, said.
Oregon is in a crisis. It put a halt on new marijuana licenses last year so that it can catch up on thousands of backed-up applications, and it's still catching up.
When Oregon legalized recreational marijuana in 2016, it extended an open invitation to growers from the century-old illegal industry to register for recreational licenses. This low barrier to entry encouraged an increase in production.
While this oversupply of Marijuana is a crisis for Oregon growers - it could mean great news for recreational weed smokers across America.
And the States that have NOT legalized weed, like New York or Georgia - are expected to see the biggest drop in prices.
The state of Oregon has "at least a half a billion dollars in local investment that is on the verge of being wiped out. And a lot of that investment is centered in some of the poorest communities in the state."