Hatfield speaks on the role of the state and modern governor within the federalism system. He says a governor needs a commitment to the system of federalism, and that he must both be willing to resist federal encroachment and recognize the role of the state. He goes on to detail how Oregon is coping with unprecedented growth by American moving west. He argues the diversification of industries has been a boon for the state, with the lowest unemployment rate. Following, he says the structure of government needs to adapt as well, citing reorganization efforts. He believes the state constitution should be a framework and not a straightjacket. Hatfield believes social issues should be the concern of the state, citing education, health care, and civil rights. Moving on, he calls for reform of how the state collects revenue, calling for some form of tax on tobacco.