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Worldview might save economy
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LAS VEGAS REVIEW-JOURNAL
Exports are not the magic potion for reviving the battered Las Vegas economy, but a study being released today by the Brookings Institution suggests that increased exporting would give the city more financial strength.
"You have lost hundreds of thousands of jobs, and international trade is only part of a rebuilt Las Vegas economy," said Mark Munro, policy director of the Metropolitan Policy Program at Brookings.
"Should Las Vegas double exports, that would be tens of thousands of jobs in the region," Munro said. "This is an element and part of rebuilding the Las Vegas economy. It's not a panacea or silver bullet."
He made the comments based on information compiled in the Exports West Report about the 10 largest metropolitan areas in the Mountain West region, including Las Vegas.
In its report, the Washington, D.C., think tank noted that Las Vegas exported $7.3 billion in goods and services in 2008, the latest year for which figures are available. That represents 7.7 percent of what the city produces and supports 30,000 jobs, according to the report.
The city generated a larger share of its gross metropolitan product from exports than any other city, according to the report. However, the report defines foreign tourism as one form of export services. The study shows 80 percent of Las Vegas exports come from services and only 20 percent from goods.
Exports employed a "rather meager 3.2 percent of Las Vegas workforce, and one in ten of those export workers were employed in the lucrative tourism industry," the report said.
Munro said the city's familiarity with foreign tourists and conventioneers, however, shows the potential for Las Vegas to expand product exports.
"It proves that the region has the ability to identify markets and go after them," he said.
"Las Vegas is moving rapidly in the direction of becoming a permanent global trade show center," the report said.
Munro referred to President Barack Obama's goal of doubling exports in five years. The analyst said the country needs to focus on exporting because it appears that the nation's economy will have slower growth in the foreseeable future.
Nevada doubled its exports during the five years ending in 2008, said Al DiStefano, director of global business development for the Nevada Commission on Economic Development.
DiStefano said many small manufacturers, however, lack the "nuts and bolts" training needed to navigate through documentation, tariffs and approvals needed to sell products overseas.
He and the University of Nevada, Reno conducted a four-day seminar that provided small companies with the basic information they need to export, but he said his time and budget is limited. He hopes the federal government will give him a block grant that can be used to reduce the $600 fee for the course and enable more small companies to attend a basic export course.
"The crucial issue is education," he said.
DiStefano mentioned one exporter who paid a 100 percent duty on exports to Brazil when he could have legally cut the duty in half by using a different classification for the product.
Southern Nevada manufacturers of medical equipment, electronic measuring equipment, aircraft parts, toys and games are good export candidates, DiStefano said. Many are one- and two-person companies.
"The reason that these people haven't gotten into exporting before is they have absolutely no knowledge of what to do."
Contact John G. Edwards at jedwards @reviewjournal.com or 702-383-0420.
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1) The government subsidizes water and energy usage in California, Nevada and Arizona. This artificially lowers the cost of living.
2) Yes, we had a housing boom and that collapsed, dropping housing prices (although artificially propped up for a time by the Housing stimulus)
3) The Nevada government increased taxes dramatically, twice, in one decade (including adding and then doubling a payroll tax). The tax increase first fueled a government binge the second round of tax increases attempted to keep the party going while the rest of Nevada suffered. In other words, the legislature kicked the people while they were down.
4) Nevada’s increased minimum wage and other Federal rules and regulations that make it harder to employ unskilled people are also contributing. Remember, Nevada has a very low rate of skilled workers (despite a historically high income and low poverty rate). Thus policies that kill of jobs for low-skilled workers disproportionately impacts states with lots of unskilled workers.
@Patrick R. Gibbons, this may be an unintended consequence, but you have become the "poster child" to explain why thoughtful people must now flee Southern Nevada, as soon as possible. It's too late for Las Vegas--for the foreseeable future--and decent people should bail if they can--taking others with them. Do you have a good photo we can use for Great Ruins of Las Vegas Tours?
Thomas Shermpsun
Roger and Tom, Urban sprawl are boogyman monsters you shouldn't worry about. Areas that focus on urban sprawl end up increasing the cost of living, destroying jobs, increasing poverty, and in some cases doing more damage to the environment than if they left well enough alone. If you want sustainability stop the government from subsidizing energy and water usage.
Turn Nevada into a Free Trade Zone: http://www.writeonnevada.com/2010/07/nevada-free-trade-zone.html
Well said Tom.S..... some other things to consider; fed government report projecting nation's unemployment at 9% for all of NEXT year 2011, what does that says for the recovery of LV, when everybody says the LV recovery depends on the rest of the country recovering first? Also, 'urban sprawl'..yes, unless controlled and controlled now we can forget about property values ever coming back. I saw a news report where a realtor from Boston said property values are holding because they hvae 'land lock, ie, nowhere else to build. Can't say that about LV can we? Matter of fact we have county commissioners who feel part of the LV is contingent upon housing and construction.
Here's my world view. The Las Vegas Valley is overpopulated. It is not sustainable in its present form, especially with its urban sprawl. It is no longer the center of the gaming universe. The Big 4 casinos (MGM, Wynn, LVS, Harrahs) are increasingly focused outside Las Vegas and will bail when it makes sense to bail. The politicians do not have the will or the courage to go in a different direction. Nevada does not have the educational infrastructure, nor does it appear it will get it in the forseeable future. Mr. Lang, you were the last one taken, the last one suckered.
This article seems fake. Export toys/games, medical equipment, measuring equipment. One and two person operations? I doubt the claim that there is but 1 or 2 of each mentioned business in the article.
All fluff and fake.
ONE OF THE SMARTEST PEOPLE I KNOW, ONCE SAID; " BELIEVE NOTHING THAT YOU HEAR, AND HALF OF THE THINGS YOU SEE, AND YOU'LL BE BETTER OFF! THIS STORY FITS THAT TO A TEE!
WHAT IN THE WIDE. WIDE WORLD OF SPORTS ARE YOU TALKING ABOUT? I HOPE YOUR REALLY NOT BELIEVING THIS REPORT! I'VE GOT SOME AREA 51 LAND I'D LIKE TO SELL YOU, AND MY REPORT SAYS IT HAS EASY ACCESS...
We export war and the tools of war. It is the only thing we still manufacture and we are quite good at it.