
Workforce Development and Its Impact on Our Future Economy
Business Connections, Fall 2007
By Tim Probst
Clark County is booming, and proud of our success! As we grow, the need for infrastructure is apparent and often controversial. New highways, interchanges, and a multi-billion-dollar I-5 bridge are on people's minds and in the public eye. Yet, our physical infrastructure is only a part of our overall economic infrastructure.
Today, yesterday, one hundred years ago, and one hundred years into the future, one economic truth remains constant. The economy is, first and foremost, the sum of each individual's hard work, skills, creativity, and personal initiative. But more than ever before, today's Clark County economy relies on skills and education.
We do not compete based on low labor costs. Jobs that need a lot of people working for very low wages go elsewhere in the global economy. We compete globally based on quality, innovation, and adaptability. And the better we compete globally, the better our locally-based businesses do, as well. The traded sector industries bring in many of the dollars that circulate and re-circulate in our service sector and traditional economy.
In other words, international trade is a major component of our economic horsepower, even for those companies who are not directly involved in the global economy.
And the companies who are involved in international trade can be based anywhere in the nation or world. Our economic competitiveness is the key to keeping all of our businesses thriving.
Today, more than ever before, the skills and education of our workforce is a primary determinant of our economic health.
But we sometimes act as if we don't realize this. Our high school dropout rate is between 25% and 33%, depending on whose statistics you believe. America produces about 1.3 million university graduates a year, which sounds like a lot. But in 1999, we produced that many, and in 2005, we still did. In the same time span, China went from half as many (950,000) to twice as many (2.5 million).
If we truly believe that economic success is earned by hard work and smart investments, then we have to wonder where we will be in a decade or two. The nations who understand the modern economy and invest accordingly will of course lead the world of tomorrow. We should take steps today to ensure that we are not surprised by the eventual outcome.
Government has to be part of the answer. Our physical infrastructure-roads, bridges, highways, telecommunications, and ports-are highly dependent on communities agreeing to pool their resources for the general good through government spending. Without government investments in these projects, they generally would not happen.
The same is true of our workforce infrastructure. Without high schools that are relevant, colleges and universities that are cutting-edge, and workforce development programs that are immediately responsive to changing economic demand, our businesses will be at a disadvantage and our economy will be less competitive.
The good news is, we know the answer and we know what works. The Southwest Washington Workforce Development Council (funded primarily by the federal Workforce Investment Act) actively and effectively engages business and labor leadership to work together to reduce the dropout rate, increase our workforce training capacity, and focus those increases on the most-needed skills in the local economy. Clark College is consistently moving people into the futures they have dreamed of for themselves. Private career schools throughout the County are doing the same. And the potential for WSU Vancouver is almost unlimited, now that it is a four-year university.
The bad news is, we still have a sizable and vocal minority who do not want effective government spending, rather, they want no government spending at all. Grover Norquist famously called on the American people to "shrink government until it is small enough to drown in the bathtub."
The economic truth of the matter is this. Government exists for a reason. We can call it a "necessary evil" if that gets a chuckle out of our friends, but it is important that we all choose to seek effective and fiscally responsible
government, and reject the idea that all government spending is bad. Otherwise, it may be too late before we realize that other nations-nations with shiny new physical infrastructure and newly-minted technicians, skilled laborers, and university graduates-have passed us by.
We have five percent of the world's population. We are the world's sole superpower solely because we have the world's most impressive economy. We must protect the fundamental underpinnings of our economic engine at all costs. Anything less would be the height of fiscal irresponsibility.
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