Oregon's economy lacks diversity
Attitudes, lack of facts to blame
By Brad Barton
Of #>• Em 9ft Id
Several explanations have
been given for the dearth of
diversity in Oregon's economy
Oregon’s anti-business
image, several say, is a major
impediment to growth
“A principal barrier to eco
nomic diversification is the mis
erable image Oregon has with
the national business commun
ity," said Gov Vic Atiyeh while
addressing the Legislature
"We hear complaints that
Oregon actively discourages
people from coming here
None of those assertions are
true but the image persists.”
he added
Oregon's anti-business image
"is as much an impediment to
economic development as
today's high interest rates."
Atiyeh said
The state s Legislative Re
search Office late last year
studied industrial relocation
factors why does a company
choose one site over another'’
The office's study concluded
some people in Oregon seem
negative about electronics firms
moving to the state, and gave
an example of a firm that
received little encouragement
from Portland officials when
considering relocating there
The Oregon un-greeting
cards worked says economics
prof Mike Grove The un-greet
ing cards featured maxims such
as "Oregonians don't tan. they
rust "
Eugene is ecologically
conscious and has sort of a
prima donna attitude, says Bill
Wooten, Lane Economic
Development Council s pro
gram director
Eugeneans would see ram
pant economic development as
a defoliation of what they prize
most, he adds It really puts a
chill in the air ”
A lack of available information
on Oregon's economy has been
a serious problem as well
"The way to go about diver
sifying a economy is to first do
studies that will give a clear
picture of what the economy is
like But these studies haven’t
been done here, which is really
incredible," Grove says
"Business interests want to
have statistical economic re
search information of a com
munity available when con
sidering locating, and it just isn't
there; therefore, people just
don't know how diversified the
economy is,” he adds
Local "studies have suggest
ed that the economy is healthy
and diversification is not a great
necessity Adding more small
service businesses to compete
with existing ones, as the
studies have suggested, would
hurt, rather than help, the
economy," says Tom Moreland,
Lane Economic Foundation
board chairman
Lack of coherent strategy has
also hindered diversification in
Oregon
The public sector has a poor
conception of its role in econ
omic development, Wooten
says, adding that public
participation is lacking in the
management and development
of the economy
The resources of the state
have never been effectively
utilized," Grove says "There
are lots of economists in this
state, but they have never been
asked to do anything There
seems to be the thought that
Oregon is somehow above it
all "*
There was once a select in
dustries program in the state
government, but over the past
several years the Legislature
has concentrated on "assisting,
preserving and maintaining''
industries already in Oregon,
says Ed Gage of the state
Economic Development
Department
Even though the state Senate
agreed last year to begin
recruiting specific industries,
the program has been poorly
funded, Gage says
' The biggest problem we
___^
Sunday, February 7th
TWO SHOWS 7:00 and 9:00 p.m.
-TICKETS $8.00 and $7.00 RESERVED
Tickets available
EMU Main Desk
Emerald Valley Forrest Irtn
Creswell
Mazama Sporting Good*
Valley River next to Bi-Mart
Round-Tu-lt Gilts
Cottage Grove
Lights for Musir
Springfield _____
_< ()Mt IARIY—HAVE DINNcR
reservations recommended
i ii i:
i;>| IlKAM) VAUJl
IOKKIS1 LWV
I) \ll KIM KO.UK
< K I s U 1 1 I . O K I ( » ( i x|
H » » t I » 7
.. M M-KIM.I II Ml
have here is the multiplicity of
jurisdictions that don't trust
each other and compete with
each other for available funds,”
says Wooten on local diver
sification. "The principal an
tagonists are the city, the coun
ty and the Eugene and
Springfield Chamber of Com
merces They don't agree with
each other and the public
doesn't seem to agree with
them, either '
Poor local planning has al
lowed the development of
‘‘several dependently related
industries, which is a problem —
when the main industry (wood
products) is depressed, related
industries have the same prob
lems,” Moreland says.
The lack of a rational tax and
regulation scheme as another
big problem,'' Grove says
"When taxes are structured
on a land-value basis, people
are more willing to sit on un
developed land in order to keep
their taxes low,” he adds
Economic factors outside the
/TNv _
state can also have a significant
affect on Oregon’s develop
ment
"The price of the commodity
on which our economy is based
(wood products) is tied to the
general interest rate of the na
tion's economy," Grove says
"When the Federal Reserve
Board begins a monetary policy
concerned primarily with
stabilizing demand in the entire
nation, the interest rate roller
coaster hurts Oregon's econ
omy."
The huge federal deficit
causes the government to com
pete with the private sector for
available money, driving up the
interest rate and keeping in
vestment funds out of the econ
omy, Grove and Moreland
agree
"We get so concentrated on
the idea that the restrictive
monetary policy is causing the
lumber industry's depression,
but other fundamental reasons
for the depression are masked
by the high interest rates,”
Grove warns
"Changes in the cost
structure of plywood production
may very well make it much
more economical to produce
plywood in Georgia,” he says.
The national economy is
"sick," suffering from a decline
in production and a loss of in
vestment to foreign labor mar
kets, Wooten says. When strin
gent counter-measures were
taken to combat inflation,
Oregon was "really in for a
crunch," he adds.
Everybody’s
got a
hungry
heart
Satisfy it with an ODE
Heart Throb.
IS heart foN word* lor tl.SO H placed
by 1 p m Fob. 11 at tho utuol
location* •
*EMU Main Desk • UO Bookstore •
ODE. 300 EMU
TEETH
Ignore them
and they will
go away
Teeth Cleaninq
and Exam $25
Will Morningsun O.O.S.
Thomas R. Huhn O.O.S.
call for appointment
746-6517
1 Vi miles from campus next to
the Bike Path
528 Mill St. Springfield
FINE ARTS BOOK SALE
20% Off
This week all titles from The Book Department’s
stock of fine art books are reduced 20% from retail
price. Select now from our wide selection in these art
areas: calligraphy, decorative and basic design,
graphics, printmaking, needlework, embroidery,
sewing, quilting, weaving, knitting, crocheting,
stained glass, bookbinding, sculpture, jewelry,
origami, crafts, pottery, ceramics, porcelain, clip-art,
drawing and painting.
Upstairs in The Book Department
February 1-6
b;
* limited to stock on hand
*cash register sales only
*does not include text books