What a difference a year makes. Once touted as the fastest growing and most dynamic city in the country, Las Vegas is now mired in a devastating recession. The unemployment rate has doubled in a year and the city is feeling the effects of putting all of its fortunes on one industry. Gaming business is off dramatically and the construction boom associated with its development has come to a complete halt. The results are being felt all over Nevada but not as strongly in the more diversified economies of other cities. Only Michigan and Rhode Island have higher statewide jobless rates. The boom to bust scenario has the city fathers rethinking their gamble on one roll of the dice. Click on the link above to read further and consider the parallels that exist with Florida.
Las Vegas' economy has suffered the worst because it is the most specialized. When one nation depends on a certain commodity too much then a rapid decline is much more likely. For instance, in the midst of the 18th cetury Ireland suffered a massive potato famine. Unfortunately for Ireland, potatoes were a major part of their diets and economy. The country, needless to say, was greatly damaged and learned to diversify. Las Vegas is similar in this manner. Once Las Vegas and Nevada can diversify its economy, it will be more adaptable to hard economic times.
ReplyDeleteCharlie Vilmar
P. 3