Historic lessons learned in economic resiliency.

In 1971, at the height of  a regional economic downturn dubbed the “Boeing Bust,” plummeting demand compelled the region’s largest employer to more than halve its workforce—igniting a local recession. In response, a pair of Seattle realtors posted a now infamous tongue-in-cheek billboard on Pacific Highway near Seattle-Tacoma International Airport: “Will the last person leaving SEATTLE —Turn out the lights.”

While the Boeing Bust briefly caused the local unemployment rate to skyrocket to 13.8 percent— nearly triple the national average— and the Emerald City’s population to dip below 500,000 (from 565,000 in 1965), it proved to be a cautionary tale illustrating the inherent danger of putting too much reliance on a single employer or business sector to drive the local and regional economy. Statewide, diversification became a mantra of economic development.

Nearly four decades later in 2008, the housing bubble burst, and Seattle lender Washington Mutual collapsed in the largest bank failure in US history. With little in the way of federal assistance, local governments were largely left to fend for themselves during the Great Recession—which ultimately became the longest economic downturn since World War II. So, when the COVID-19 pandemic triggered a global recession, cities nationwide collectively rallied for the passage of the American Rescue Plan Act. These ARPA funds are now helping local jurisdictions chart self-determined paths toward economic resiliency.

As we enter a new year seemingly fraught with a fresh wave of economic challenges—not the least being the alarming contraction of a once-booming tech sector, including Seattle-based Amazon, which shed 10,000 employees in 2022 and anticipates more layoffs in 2023—we take hope and inspiration from the past. Thanks in no small part to ARPA, and local leadership, the lights still shine bright in Seattle, and in cities across the state.