New Economy Brings New Hope

Thirty Pacific Northwest economists have produced a stunning report about our region’s future.

And put down your hankie. This report is an antidote to the current economic hand-wringing. It contains a bracing dose of good news.

The authors, based at the region’s universities, spoke out in response to a prevailing but unfounded belief: that the Northwest’s economy is being ruined by declining wages and jobs in mining, timber and agriculture.

In truth, the Pacific Northwest’s economy is thriving, dramatically outperforming national averages. Yet, public opinion and political trends remain focused on industrial bellwethers of the past century such as logging. Furthermore, by focusing on the old industries’ gripes about environmental laws, public debate misses the economic fact that automation and global competition are the leading reasons those industries cut jobs and wages.

That retrenchment in natural-resource industries didn’t shrink the region’s economy. Why? Because elsewhere, in the high-technology sector, there’s a boom under way. Microsoft, Micron, Intel … Companies like these are expanding here and moving here - by choice.

High-tech firms can locate anywhere, but the highly educated workers they employ prefer the Northwest’s comparatively unspoiled environment. This growth has occurred in many locales, not just Bellevue. Spokane’s Momentum organization, spotting this trend early, brought some of the growth here.

The economists say it’s impossible to bring back the growth and glory days of the old natural resources industries, given global market forces. And if policy-makers attempt to weaken environmental safeguards or over-harvest forests for the sake of those old industries, they may jeopardize the qualities that are attracting the new industries and spurring the current boom.

True enough. But here’s a plea for balance: The painful adjustments of a maturing industry someday will befall high tech. Look at AT&T. Agriculture and timber will continue as big economic players. Policies should be aiming for sustainable, environmentally sensitive harvests, rather than viewing forests and fields merely as a source of clean water and fish and a pretty scene to ease the eyes of software engineers. Outside the suburbs, plenty of people still look to chainsaws and plows for a living.

Clearly, though, the Northwest’s future hinges on the education of local residents for the new economy and on acceptance of the following truth: The health of our economy depends, now more than ever, on the health of our natural environment.

, DataTimes MEMO: This sidebar appeared with the story: Get the report For a copy of the report, write: Tom Power, Department of Economics, University of Montana, Missoula, Mont. 59812.

The following fields overflowed: CREDIT = John Webster/For the editorial board