Jan 1, 1974
Summarizes (1) the results and implications of Seattle's adaptation to the massive recession caused there by cutbacks in aerospace employment, (2) the implications for the area's future prosperity, and (3) policy strategies for ensuring that prosperity. Although mass layoffs in the aircraft industry occurred in Seattle between 1969 and 1971, the area's economy showed remarkable resilience, mainly because of the high incomes of Seattle residents, which enabled the unemployed to continue to consume out of personal assets. A model of the Seattle area economy was constructed to assess how the recession affected various sectors of the economy and to make projections regarding the city's future. Clearly, Seattle must diversify its economy, which still relies heavily on the aerospace industry. The high wage structure and the highly educated work force almost dictate that priority be given to attracting new jobs from high paying, high technology industry.