Why Washington’s Economy Is 2.5 Times Larger Than Oregon

Why Washington’s Economy Is 2.5 Times Larger Than Oregon

If you go back 150 years ago, Oregon was the undisputed leader in the Pacific Northwest. It was the original territory and state, and it was an agricultural powerhouse. These days their neighbor to the north, Washington, has nearly double the population of Oregon and now has an economy over 2.5 times larger. It would be near impossible to argue against the fact that Washington is the more successful state, no matter how you look at it. So what happened and why did it happen? The following video delves deep into the reasons behind Oregon being so much less successful despite being so much older than Washington:

YouTube Video

Washington vs Oregon in broad strokes:

Oregon was the breakout start of the Pacific Northwest around 1875. The Oregon Trail brought waves of settlers to its fertile Willamette Valley, dreaming to set up their lives in a farming paradise. Meanwhile, as Portland grew and Oregon became an agricultural giant, Washington remained largely as an afterthought as it split off into its own territory in 1853.

While Oregon includes a lush western valley perfect for crops near the coast, it lacks few deep ports. Portland’s inland location made it harder to access as well. Washington, on the other hand, features the massive inland sea of Puget Sound, featuring natural harbors ideal for shipping and trade. Eastern Washington sees benefits from the Columbia River System, allowing for irrigation, farming, and cities like Spokane. Meanwhile, Eastern Oregon was a high desert, limiting its growth.

In 1897, with the Klondike Gold Rush, Seattle managed to market their city as the gateway to Alaska, bringing prospectors in and exploding both the population economy. Soon Seattle sat above Portland as the financial powerhouse, and as industry developed, Washington diversified. Boeing, Microsoft, Amazon, and more all marked growth in the state, while Oregon stuck mostly to timber and later hardware tech like Intel chips and Nike gear.

Washington’s population nearly doubles Oregon’s today, and the northern state’s GDP is over 2.5 times larger than the southern state’s.


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