Is there room left for middle class families?

A few days ago weekend, the Star covered a speech by UC Santa Barbara economist Bill Watkins, noting the squeeze on middle-class families in our area:

http://www1.venturacountystar.com/vcs/county_news/ article/0,1375,VCS_226_5358145,00.html

With housing prices holding at all-time highs, public school enrollments are dropping, which Watkins attributes to families moving to places where homes are more affordable. He was quoted as saying: ""We have a bunch of old, rich people, and a bunch of young people in the service sector taking care of them," he said. "We're losing the middle."

Watkins observations echo the predictions of the late Bill McGowan. In his “Angry Economist” columns in the Ventura County Reporter, he analyzed global economic and demographic trends and concluded that Ventura would become a very nice commuter, retirement and second-home community.

There are worse things to be. But most Venturans reject that fate, even as we continue to drift toward it.

The Pierpont neighborhood is an emerging test case of that trend. Neighbors there have complained to the City Council about loud parties and cars clogging the narrow lanes from the increasing number of beach rentals. Next Wednesday, the City Council will consider a range of options for dealing with that immediate issue:

http://www.cityofventura.net/newsmanager/ articlefiles/1744-advance%2004.pdf

But government regulation alone can do little to halt the erosion of a charming neighborhood of modest homes turning into an expensive enclave of retirement villas and vacation homes.

Bill McGowan, who was an iconoclastic free market man, urged that we simply adjust to this trend. But our 2005 General Plan suggests a different strategic vision. By promoting high wage jobs and a premium quality of life for families (great schools, parks, recreation, libraries, safety etc.), we would still be a costly place to live, but the value-added would continue to make it attractive for families. The availability of high wage jobs (as well as affordable housing strategies for those working in lower-wage jobs) is key to the viability of this strategy.

Easier said than done, of course. When most people talk about economic development, they focus on the short term aims of promoting retail sales to increase city revenues. But Ventura already outperforms every city in the County except Oxnard on per capita retail sales. Ultimately, it will be the creation of wealth that boosts retail (Thousand Oaks is the only city in the County with higher per capita sales -- and is clearly the leader in high-wage, high-value jobs.)

It is unlikely that a major corporation will pick up and move to Ventura, given our high housing costs and distance from major airports. But the Central Coast remains an attractive place for entrepreneurs who draw on a highly educated workforce. It is probably no accident that Patagonia is our most prominent corporate marquee name, with its dyed-in green mindset. Companies with a similar environmentally-friendly emphasis are among the best matches for our area.

For more information on Ventura's Economic Development Strategy, see:

http://www.cityofventura.net/newsmanager/ templates/?a=231&z=3