New Study Focuses on “Building an Inclusive Economy” in the Monterey Bay Region – The King City Rustler

CENTRAL COAST – A new report commissioned by the Monterey Bay Economic Partnership (MBEP) and developed by the Institute for Social Transformation at UC Santa Cruz presents a series of indicators to help develop strategies for a more inclusive economy can be used in the Monterey Bay region.

“Building an Inclusive Economy in the Monterey Bay Region: A Progress Report” is designed to help community and business leaders in Monterey, San Benito and Santa Cruz counties better understand the progress they are making toward a more inclusive economy Identify priority areas that need attention.

Traditional measures of growth and inclusion, which focus on simple measures of economic performance and income, are not sufficient for a comprehensive understanding of the economy and economic inclusion. There is a growing movement towards developing a more complex and systems-oriented understanding of the economy that includes greater consideration of environmental and social well-being.

There is now strong evidence, at both metropolitan and national levels, that fairer regions and countries have better economic performance – stronger growth and more quality jobs, greater resilience to economic downturns, and better ability to capture new advantages, drive innovation, and respond productively to economic shocks or structural changes.

“This new report provides strong evidence of progress toward an equitable regional economy,” said Tahra Goraya, President and CEO of MBEP. “It also serves as a roadmap for where we need to come together to develop effective economic strategies to improve social justice in our region.”

The five dimensions of inclusiveness of the indicators show the most positive trends in the area of ​​sustainability. Air quality has improved, greenhouse gas (GHG) emissions per capita have decreased, and energy intensity (economic output per unit of electricity) has improved.

There is still significant room for improvement in all of these areas, particularly in reducing greenhouse gas emissions to achieve important goals related to climate change mitigation, but trends are moving in the right direction. It is also encouraging that, although income inequality is increasing across the country, the overall level of income inequality appears to have remained largely stable over the past decade, and that the overall level of income inequality remains below the national average.

Overall, however, the indicators show major challenges in several dimensions of the economy. Key highlights in each category include the following:

Just

Overall, there are stark inequalities along racial lines in the region. This applies to income, wealth accumulation and education level.

Although the region has made significant progress in educational attainment over the past decade, large educational inequalities remain.

Participatory

Although opportunities to participate in the regional economy appear to be improving, participation remains uneven across racial groups and has been slow to deliver benefits for many community members.

In terms of participation in economic development decision-making, voter turnout in the region remains low, with the exception of an expected increase in the last presidential election in 2020. In particular, Monterey County – the most populous county in the region – always has the lowest voter turnout in every election year.

When it comes to economic participation, self-employment income has not increased for most racial groups despite an increase in new business applications. Undocumented workers play a critical role in the regional workforce and are more likely to be active members of the labor force than documented workers, but face far worse economic conditions.

And although internet accessibility has improved slightly over time, disparities in access still exist between racial groups.

Growing

The regional economy shows uneven growth in several areas. Both GDP per capita and labor productivity have increased over the last decade, representing a strong development at the macro level. However, employment in high value-added industries has declined, highlighting regional dependence on low-wage industries.

At the household and individual levels, the burdens of a booming real estate market were borne by low-income residents. Household food insecurity has remained stable, although it is more common in Monterey County than elsewhere.

The percentage of people earning less than 200% of the federal poverty level has declined, potentially indicating improved opportunities for low-income households.

Sustainable

Fortunately, regional economic growth has mitigated excessive environmental damage. Both energy intensity and air quality have improved over the last decade.

Additionally, greenhouse gas emissions per capita have continued to decline, with emissions in all three counties declining by over 20% in the last decade alone. However, the region needs to reduce greenhouse gas emissions even faster to achieve key goals related to climate change mitigation.

Stable

The regional economy remains more volatile than the overall state economy. The means of maintaining financial stability, such as health insurance coverage, have improved over time. However, social safety nets are inadequate for those outside the traditional workforce.

Counties have begun spending less on social security and welfare programs, and retirement savings among lower-income households have declined. In terms of community stability, violent crime rates have declined across the region. However, property crime remains high in key cities, particularly Santa Cruz.

“Accurate data is important to inform discussions about the challenges and opportunities we face in the region,” said Chris Benner, faculty director of the Institute for Social Transformation. “We hope this report can help inform conversations among a broad range of community, business and public sector leaders across the region as they develop priority investments and strategies for the coming year.”

The full report is available at ow.ly/JFhQ50Qli6H.