Posts published in “Washington”

RANDY STAPILUS   Washington

Some people will probably be calling it the billion-dollar tax proposal – a proposal that taxpayers will be asked to impose on themselves – which may be a small exaggeration but will certainly highlight why the correct number is $900 million.

“Oh, it’s not a billion? Excuse me – you’re right, it’s a mere $900 million . . .”

The ask is for the city of Seattle, whose leading officials including the mayor are the people doing the asking, and which is large and wealthy enough to make it not beyond the pale. And it’s not that transportation needs in the city aren’t great: They surely are.

It’s just that the number is so large it may cause a lot of taxpayers to blanch and decide against it before they’ve even had a chance to look at the large number of things it would do.

Which raises another problem. The list is extensive all right (see the local section in this edition), but so much so that your eyes tend to glaze over.

Then there’s the matter of what it doesn’t include, but will be an overarching consideration during the campaign ahead: Bertha. The mega-machine, that is, still sort of stuck in the ground and falling ever further behind in its effort to create a revised Alaskan Way viaduct.

Anyone seeking to blow the new tax plan out of the water will have only to recite that one name – “Bertha” – to punch the air out of any grand new transportation plans.
Optimism in that whole arena of Seattle transportation is in short supply this year, as it was last. The timing for this thing may be less than ideal, even if the need is demonstrably, yes, quite real.

RANDY STAPILUS   Washington

Here are two ways that the 2013 election of socialist Kshama Sawant to the Seattle City Council might have played out.

1 – She might have become a shrill complainer about most of what the council did, and the rest of the council would have put in (metaphorical) earplugs and just gone about its business, ignoring her.

2 – She might have made an occasional stand for a different perspective but largely gone along with the council majority so as not to be marginalized.

What actually happened seems to have fallen somewhere in between: Challenging the other council members and sticking up for alternative positions on a regular basis, but without being ignored. She has torn into them on occasion, but apparently has enough political skill to turn at least some of that into practical action.

As the Seattle Times noted in a front page story last week: “She accused them of taking their marching orders from corporate executives. But the next month, the council adopted a new budget peppered with Sawant-sponsored amendments — including an immediate wage hike for city employees, money to support tent encampments and a commitment to study a possible excise tax on millionaires — and the opposite seemed just as accurate: Sawant’s colleagues were taking marching orders from her.”

Not everywhere, or on all things, certainly. None of the council members are all that dominant, but Sawant’s influence appears to be real. Veteran Council member Nick Licata described the council now as “More progressive. More sensitive to social and economic justice. The other members are inclined to go there, but Kshama is pushing them. Kshama has made things happen that never would have happened before.”

That amounts to some real change in the city of Seattle.
Sawant is being challenged this year by a couple of opponents, at least one of whom has substantial establishment back. But she’s running in the best district in Seattle for her politics. We’ll see if her approach continues to push the city in different directions for another few years.

RANDY STAPILUS   Washington

The argument against major raises to the minimum wage, notably in Washington – where the minimum is the highest in the country – sometimes runs to the ideological (government shouldn’t so regulate business) but focuses more on the practical.

That is: Higher minimum wages would have negative economic effects, especially in the area of the number of jobs out there. Raise the wage, the argument goes, and the business-wage monetary pie will be sliced fewer ways, cutting out some of the jobs.

The argument sounds sensible from a numerical standpoint, but it runs aground in several other places. One is that the amount of money dedicated to paychecks is not static: It varies as the need for workers goes up or down. A hamburger joint that needs to hire (let’s say) a dozen workers to meet the demand and keep the business operating properly isn’t going to suddenly drop to nine employees because wages went up. More likely, as is the case for any business when some part of the operation becomes more costly, the price of a burger and fries will edge up. Most of the time, customers little notice – less than they would if they weren’t getting their orders filled.

This comes back to mind with a piece in the Horse’s Ass blog, recalling the warnings of Andrew Friedman, a Seattle bar owner (it’s called Liberty, of course) warned that a $15 minimum wage meant “Local independent businesses WILL closed, many of your neighbors WILL be out of work.”

About nine months ago, the minimum wage was approved. A few days ago, some months after its effects had some time to settle in, Friedman had some business news. No, not the closure of Liberty, but rather the opening of second bar (the Good Citizen).

Sounds like more jobs have been created.

Albeit, for customers, probably a higher tab on the well drinks.

RANDY STAPILUS   Washington

The biggest story of the week in the Northwest, and one not getting especially strong news coverage, is the now-arrived massive Pacific Coast port shutdowns, extending across a vast distance north to Alaska and south through California.

And not just a regional story, but national. The members of Congress beginning to scurry about calling for help – from the White House among other places – are not misplacing their concerns.

Here’s one comment, one of many like it around the net as last week ended, from the Retail Industry Leaders Association: “A breakdown in contract negotiations between labor and management at America's west coast ports is threatening to turn a slowdown into a full-scale strike, and an economic headache into a full-blown crisis that impacts the entire American economy.”

Ports on the west coast carry an estimated 43.5% of all container cargo in the United States – something like a trillion dollars in trade. You have to assume that in the Pacific Northwest, the percentage is much higher. Businesses will not be able to get supplies or get to market; consumers will not get goods. The economy could screech to a halt.

The battle between the Pacific Maritime Association (which represents the 29 big pacific ports, including Seattle, Portland and Tacoma) and the International Longshore and Warehouse Workers has turned poisonous. Each essentially is accusing the other of bad faith, and making essentially personal shots at the other. And each seems to have grievances with the other that seem to reach beyond the merely emotional.

Getting past this won’t be easy.

Time has come for the national government to weigh in. All these cheerful economic numbers – like the excellent employment news released last week – could come to an end if this loggerheads on the Pacific Coast doesn’t.