Economist says Portland's economic strategy isn't working
Tim Duy notes that Multnomah County residents earn less than those in surounding areas
University of Oregon economist Tim Duy delivered a pointed critique of Portland’s previous and current economic development strategies to a group of Washington County business and political leaders Friday morning, noting that median household incomes are lower in Multnomah County — where most of Portland is located — than in either adjacent Washington or Clackamas counties.
Duy, who spoke at the monthly meeting of the Westside Economic Alliance, noted that it was the opposite of King County where Seattle is located, which has a higher median family income than its adjacent counties.
“Are we ready to admit there is a problem?” Duy asked the crowd.
According to Duy, although Portland has done a good job of attracting the so-called Creative Class, the city has not been able to generate family wage jobs. In contrast, Seattle is home to large companies that pay well, including a portion of Boeing's manufacturing base, Duy noted.
Portland Mayor Sam Adams has recognized the shortcomings of banking on the Creative Class to create wealth and has pushed the City Council to adopt a new economic development strategy that targets specific clusters of businesses, including software manufacturers and outdoor apparel design firms. Duy questioned whether the strategy would succeed, however.
“I have little faith that you can create clusters,” Duy said. “I think clusters are accidents of history. I think the best you can do is to be open to everyone and hope you get one of those accidents.”
Green and wealthy
Duy backed up his remarks with a PowerPoint presentation showing, among other things, that the median family income in Multnomah County in 2008 was $51,393, compared to $66,122 in Clackamas County and $65,625 in Washington County.
Duy also noted that the Multnomah County income was only slightly higher than the 2007 figure for the United States of $50,233.
“Do we just want to be average?” Duy asked.
Duy also questioned the value of Portland’s reputation as a green city, noting that a higher percentage of people in Seattle use mass transit than in Portland, but Seattle’s median family income is more than $88,000 — well above the rest of the county.
“Why does Portland get to be a green city but Seattle gets to be green and wealthy?” Duy asked.
Duy said the key to creating jobs includes an open-for-business attitude and the availability of suitable land for development, including parcels near existing transportation corridors. He said restricting land to specific types of industrial uses is short-sighted because it is hard to predict the next business trend.
Metro, the regional government charged with managing growth, is in the process of setting land aside for future urban development and preservation. The Metro Council is scheduled to vote on designated urban and rural reserves in late February.