Wage inequality could be the downfall of Seattle
Oct 20, 2015, 9:52 AM | Updated: 2:33 pm
Ed Conard says there can be an upside to economic inequality. (AP)
(AP)
Imagine a Seattle with fewer employers paying high incomes.
It’s a possibility that has the Seattle Metropolitan Chamber of Commerce worried.
According to a study, Seattle lost 7,000 middle-income jobs in four years. Those jobs paid a median annual salary of $49,000 per year, the chamber told The Seattle Times. At the same time, low-income jobs jumped by 20,000 and high-income jobs leaped to about 18,000.
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Though the number of high-paying jobs is good, the chamber is concerned that there isn’t enough local talent in the region to meet demand, KIRO Radio’s Tom Tangney explains. To top it off, the area is relying on four major employers for about 30 percent of the jobs. Should those employers, such as Microsoft or Amazon, leave, the region may not be able to stay competitive in the future.
Tom Tangney: Imagine if and when these companies leave …
But cities don’t work that way, John Curley argues.
John Curley: People move up and down, in and out. Let’s say our producer is making $27,000 (which would put him in the low-income bracket). He gets married to someone making $50,000. Now all of the sudden he is middle class. Has his job changed? No.
It’s by household. You have to look at the household. All our producer has done is taken a shower, taken his hat off and got married.
Later on, he decides he doesn’t want to be here. Then what happens? He moves to the Eastside.
That’s it. You flow in and out. Things go up and down.
TT: If we lose 7,000 jobs and crater to the middle class … we may be hollowing out our core.
Curley argues that Seattle is in a unique position with four major employers. Most cities only have two.
TT: That’s interesting because the Chamber of Commerce doesn’t feel that way. They say, if you have four major employers … that’s 30 percent of our workforce and makes us vulnerable.
Tom argues that an economy is stronger with a middle class. Having low-income and high-income with nothing in between is not healthy.
JC: So the king spits in the spittoon and someone empties it.
TT: And you need someone to manufacture it.
JC: Then it’s settled, we need more spittoons.
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Tune in to KIRO Newsradio weekdays at 3pm for The John Curley Show.
