‘Who’s the economy doing well for?’: Gee warns middle-class businesses are being squeezed out in Seattle

Seattle’s diners are disappearing, but yachts are booming, as the city faces a K-shaped economy, according to Oregon Public Broadcasting. A K-shaped economy groups consumers in high or low-income groups, erasing the middle class.

KIRO host Gee Scott warned that many small businesses and beloved restaurants are being driven out due to high costs. While high-end spots like Ascend and Metropolitan Grill are thriving, neighborhood staples like Blue Star Cafe and Pub in Wallingford are shutting their doors, as Oregon Public Broadcasting reported.

Gee pointed out that for most people, their favorite restaurant isn’t a high-end dining spot. It’s the mom-and-pop place around the corner that’s been there for years. And those are the ones struggling the most.

“My point is, most of us love the food of the establishments that are struggling right now,” Gee said on “The Gee and Ursula Show” on KIRO Newsradio. “And the ones that aren’t struggling, the Ascends, and the restaurants that are top tier financially, those places are fine, because people who have money aren’t hurt by what’s going on. And that’s the thing — when they say the economy is doing well, who’s the economy doing well for?”

Eddie Bauer, Blazing Bagels among Seattle-area middle-class businesses closing

Oregon Public Broadcasting pointed out middle-market businesses such as Eddie Bauer, Blazing Bagels, and Wild Waves, all announcing closures or bankruptcies. Meanwhile, luxury businesses and yachting groups are thriving, as are discount retailers like Dollar Tree and TJ Maxx.

“I still always think of the saying, small businesses are the backbone of the economy,” KIRO host Ursula Reutin said. “And it’s sad if you see more and more of those middle businesses really not making it.”

Gee said while he’s faced criticism for saying people should be given more money, he believes it’s important for the overall Seattle economy.

“What happens when the vast majority of people don’t have money? If they don’t have money they’re not going to spend, if they’re not spending, then businesses, like we’re talking about, continue to close down, and the only businesses that stay around are the businesses that are very expensive,” he said.

Watch the full discussion in the video above.

Listen to Gee and Ursula on “The Gee and Ursula Show” weekday mornings from 9 am to 12 pm on KIRO Newsradio.