Washington and Oregon Continue to Part Ways
Article by: John Ledger - May 3, 2012
One continues to get richer, the other poorer. Recent data from the U.S. Bureau of Economic Analysis indicate that when it comes to per capita income, compared to the rest of the U.S., Washington and Oregon continue on ever diverging tracks. And the direction is not good for Oregon. The per capita income of Washingtonian's is now 6% better, and Oregonian's is 9% worse than the nation as a whole.
Although Oregon has almost always had a lower per capita income than Washington until 1996, the two states tended to rise and (mostly) fall together relative to the rest of the country. But that changed. Since the mid-1990s there has been a steady decline in Oregon's relative per capita income and a steady increase in Washington's.
The trend is clear and unambiguous; the gap between the two states, significant in 1996, has widened to a chasm.
The numbers are daunting. In 1971 Washington State's per capita income was about 0.5% above and Oregon's about 3% below that of the U.S. – so the gap between the two states was less than 4%. By 1981 the gap was 9%. By 1991 it was 10.7%. By 2001 it was 11.9%. And in 2011 it had widened to over 15%.
It would not be so disturbing if the gap simply reflected a difference between two states running ahead of the national average, one more successfully than the other. But it is the result of one state going up – and other down – relative to the rest of the nation.
Regardless of the explanations for the decline, one thing is clear; to reverse to trend, Oregon must become more competitive in attracting and keeping higher paying jobs, notably in manufacturing, and avoid the rising specter of increased regulatory and cost barriers.
