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A number of issues caused both the national and state economies to go into recession after a decade of unprecedented growth. These include:
- Stock market correction and lack of consumer spending.
- Terrorism and war.
- Oil price increases.
- Dramatic increases in healthcare costs.
For Oregon, the recession was particularly deep due to a number of factors, including:
- The far greater role that durable goods manufacturing plays in Oregon’s economy than it does for the nation as a whole.
- The volatility of the state tax base due to our heavy reliance on income tax.
- The export economy.
Ultimately, Oregon had one of the nation’s highest unemployment rates for much of the recession. This has a more severe effect on state government resources than in many other states because of Oregon state government’s reliance on money received from income taxes. If Oregon businesses aren’t successful and Oregonians aren’t working, we all – citizens and government alike – struggle to make ends meet.
The good news is that the economy is recovering. Oregon has many competitive advantages that position us for a bright economic future, including:
- Business cost advantages such as lower workers compensation rates than other states, lower energy prices, multi-modal transportation options, and lower corporate tax burden than other states.
- A high quality of life – attracting business and financially secure workers and retirees because of the environment and other issues that make Oregon an attractive place to live and work.
- Affordable housing, particularly in comparison with neighboring states California and Washington.
- Recovery and expansion in the high-tech industry.
- Increased presence in the international community – global recovery of economies will increase demand for Oregon commodities.
- Sustainable development – centered in the Portland area, this movement in the building practices is spreading throughout the United States.
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