A rising tide that sinks all Californians
MARCH 4, 2005
Santa Rosa Press Democrat.
Chris Coursey

The go-go economy of the 1990s pretty much bypassed those who needed it most, widening the gap between the rich and poor in the North Bay.

That's the conclusion of a report commissioned by a coalition of labor, faith-based and community organizations. Called "New Economy, Working Solutions," the group wants local government to help close that gap with living wage ordinances, increases in the minimum wage, support for union organizing, a push for more afford- able housing and other initiatives.

But why should government get involved? Why should the average middle-class person worry about this? Won't some people always struggle to make ends meet? Sure. But according to the report, their numbers are growing. And as that segment of society expands, it creates ripples that have impacts on every Californian, rich or poor.

California's economy expanded dramatically in the 1990s, and the North Bay rode the same wave. But as the economy grew, it produced a disproportionate number of low- skill, low-wage jobs in sectors such as the retail and tourism industries. Economic theory says "a rising tide lifts all boats." But the percent- age of North Bay families living in poverty actually increased in the '90s. As the stock market, the tech industry and real estate prices rose to new heights, more and more boats were left behind, stuck in the muck.

The report calls this an "hourglass economy."

"North Bay industrial growth since 1990 has produced a job market that is largely split between high- and low-wage occupations, and is shrinking in the middle," wrote UC Berkeley researchers Nari Rhee and Dan Acland. And it's not just the North Bay. Studies show it's a statewide trend. This study uses statistics collected prior to the decline of the region's tech industry. Since then, the hour- glass has morphed into a "teardrop," with even more low-wage jobs at the bottom, says Marty Bennett, a Santa Rosa Junior College instructor and chairman of the NEWS group.

"I think there's a lot of evidence to suggest that the situation now is even worse than what is reflected in our report," he says.

If you're not at the bottom of the hourglass or the fat end of the teardrop, you may not care about these findings. But you should.

Think about California's most vexing problems. Failing schools. Underfunded health care. Unafford- able housing. Nightmarish traffic.

Every one is connected to the statewide trend that finds a growing number of working families struggling to make ends meet.

Look at the test scores in public schools. It's no secret that those with large numbers of English-language learners have trouble keeping up. But an even better predictor of school performance is the percentage of students living in poverty. Look at our health care system. The problem isn't that care is not available; it's that hospitals and clinics are burdened by huge numbers of uninsured patients - many of them working low-wage jobs without benefits.

Look at the clamor for affordable housing. The definition of "affordable" isn't just the price; it also includes the income of the buyer or the tenant. When wages don't keep up with prices, the wage gap becomes an affordability gap. Look at the traffic on our roads. The people who cook the fancy food, clean the high-priced rooms and pick the delicate grapes of our tourist- based economy drive increasingly longer distances to reach their jobs.

A better wage for those at the bottom translates to a better quality of life for all Californians. It's a tide that leaves no boats behind.

Join community leaders for a public forum on the report at 9 a.m. Saturday at Santa Rosa Junior College's Doyle Student Center.