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OregoA 20 PoiPrivateStimul
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Friends of Chris Dudley5863 Lakeview Blvd.ake Oswego, Oregon 97035(503) 616-5350www.chrisdudley.com
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 Oregon’s Comeback: A Plan to Create Private Sector Jobs and Stimulate the Economy   2
Oregon’s Comeback:
 
A Plan to Create Private Sector Jobs and Stimulate the Economy
OVERVIEW
Oregon is blessed with hard working people who care about their communities, incrediblenatural beauty and abundant natural resources. But for too long, Oregon’s political leadershave made job creation and economic growth an afterthought rather than the central focus of protecting and improving our quality of life. Without jobs, our families are worse off andgovernment lacks the tax revenues to fund schools and other essential government servicesupon which we all rely. This is Oregon’s greatest challenge: saving our quality of life bycreating economic opportunities for all Oregonians.It’s no secret we’re in tough times. Our unemployment rate remains at 10.6 percent with208,696 Oregonians out of work as of August 2010.
1
That’s a full point higher than the nationalunemployment rate, and the 8
th
highest in the nation. Washington State’s unemployment rateis 8.9 percent. Idaho’s is 8.8 percent.
2
From September 2008 to June 2010, Oregon has lost anet 85,425
 
private sector jobs.
3
As a result, one out of five (20 percent) Oregonians is todayreceiving food stamps.
4
News stories tell the same tale. In mid-June,
The Oregonian
reportedthat “Oregon's economy is stuck in neutral, with employment and unemployment both stalledand no big industry poised to give the state a shove.”
5
In August, the
Portland 
 
BusinessJournal 
reported that a mid-year review of trends shows that Oregon has the “11th weakesteconomy in the country.”
6
 But our current economic problems didn’t begin two years ago. Previous governors andlegislatures planted the seeds of our current economic troubles by spending too much andfailing to modernize and reform government when they had the chance. Worst of all, privatesector job creation was taken for-granted. Indeed, Oregon’s unemployment rate went abovethe national average in May of 1996 and it’s been stuck there ever since – fourteen straightyears.
7
 Recently, the passage of the Ballot Measures 66 and 67 tax increases have made mattersworse. Economic development officers, mayors, legislators and governors from other stateshave begun recruiting Oregon businesses to come to their states and Oregon business ownerstalk of leaving the state. Regardless of whether businesses are actually leaving the state or whether entrepreneurs are taking fewer risks in Oregon, it’s clear that our economicdevelopment reputation is tarnished and that too many job creators have lost confidence inOregon as a place to invest and grow.In the aftermath of the ballot measures, even the campaign’s chief spokesman conceded that
1
Labor Force Data, Qualityinfo.org; Oregon Employment Situation: August 2010, September 14, 2010
2
http://www.qualityinfo.org/olmisj/uranker 
3
Oregon Employment Department, Qualityinfo.org database
4
“More Oregonians than ever are receiving food stamps,”
 
The Oregonian
, May 15, 2010
5
“Oregon unemployment stuck in neutral, report suggests,”
The Oregonian
, June 15, 2010
6
“Oregon economy ranks near the bottom,”
Portland Business Journal 
, July 30, 2010
7
Bureau of Labor Statistics – Oregon vs. U.S. unemployment rates 1996-2010
 
 Oregon’s Comeback: A Plan to Create Private Sector Jobs and Stimulate the Economy  3
the outcome “soured some investors on Oregon” and made some businesses feel that theywere no longer valued, especially considering the permanent nature of the tax increases. Hissolution? He suggested a capital gains tax break.
8
Sadly, this frustration with policy-makersand a lack of confidence in Oregon as a place to maintain and build a business is a messageChris Dudley has heard again and again across Oregon.The financial impact of years of failed economic policies is dramatic. Oregon’s per capitawealth has fallen to 91 percent of the U.S. average. Washington State’s, by contrast, stands at106 percent of the U.S. average. This decline results in fewer tax revenues for schools andgovernment services. For example, if Oregon had kept pace economically with WashingtonState from 1996 to 2008, Oregonians would have $25.1 billion more in total wealth today.
9
If Oregon’s per capita incomes had kept pace with the United States during 1996-2008, in 2007alone, state and local governments would have had an additional $1.5 billion in revenue.
10
Inshort, a 16-year failure to promote a vibrant private sector economy has cost too manyOregonians their jobs, eroded our tax base and damaged our quality of life.
If Oregonians earned like WashingtoniansAdditional amount of income that would accrue to Oregon (in billions)
8
Steve Novick, “Reaching Out to Investors (Really) In the Wake of Measure 66,”
BlueOregon.com
, March 8, 2010
 
9
Breaking Out of a Circle of Scarcity: Oregon Business Plans’ Challenges for the 2010s and Beyond,ECONorthwest for the Oregon Business Council, Spring 2010, slide 25
10
Breaking Out of a Circle of Scarcity: Oregon Business Plans’ Challenges for the 2010s and Beyond,ECONorthwest for the Oregon Business Council, Spring 2010, slide 47
$17.2$4.5$3.4$25.1…at Washington's earnings rate…at Washington's investment returns rate…at Washington's employment rateTotal additional income$0$5$10$15$20$25$30
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