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Opinion
Oct. 02, 2008
Copyright © Las Vegas Review-Journal

SHERMAN FREDERICK: Think of it as flushing out the system

SHERMAN FREDERICK
MORE COLUMNS

Heller



Porter



Berkley

By the time this gets to your doorstep, the Senate will have already voted on a rescue plan for the ailing U.S. economy. Nevada's two senators, Harry Reid and John Ensign, will have voted in favor of it.

Good for them.

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    • Now the bill moves to the House, where earlier the Nevada delegation split on a rescue plan. Jon Porter voted in favor, while Shelley Berkley and Dean Heller voted against. It is my hope our delegation will now pull together and support the plan.

    Here's why:

    Despite the supercharged rhetoric surrounding this debate, I don't think we're headed to hell in a hand basket with a brief stop at the Great Depression. But we are in a bad spot nationally with credit markets. If it is not fixed, it will exact great pain on growing markets such as Las Vegas.

    Las Vegas, of course, is already coping with the recession. Tourism is significantly off, consumer spending is down and prices are up, as anyone who drives a car or buys food knows.

    Of course, these are "garden variety" economic strains. Las Vegas has lived through those conditions before and can do so again.

    But on top of that comes a profound dip in housing, which, I am sorry to say, remains a long way from improving. And if this the national credit crunch continues, the Las Vegas market will further contract, causing higher unemployment, more bankruptcies and far greater human suffering.

    Las Vegas has already seen some of that. We have condo projects sticking out of the ground as their owners scramble to find the borrowing capacity to continue. We have casinos half built and malls half built, all waiting for a better time to continue. We'll have more of this if the credit market isn't fixed.

    The sooner building and expansion projects get back on line, the better off Las Vegas will be. But without a plan of some kind to free up what ails the U.S. economy, we're in a holding pattern economically. And here's the truth our elected officials must face: If Las Vegas catches an economic cold, Nevada catches pneumonia.

    Las Vegas is the breadbasket of the state. We generate the lion's share of taxes that support local and state governments. Without a vibrant Las Vegas, government in Nevada will contract.

    Period.

    It's in everyone's best interest for Congress to fix the problem. If Reps. Porter, Heller and Berkley will do that, Las Vegas and Nevada may find a way back to economic normalcy in relatively short order. If Congress can't find a fix, it will take much longer to flush out the system -- and that will exponentially heighten the human suffering for Nevadans.

    Flush out the system. That's probably a good way to think of it. No one wants to deal with this problem, just as no one wants to fix a sewer leak. But sometimes it is best to get dirty and fix the problem before it becomes a public health issue.

    Sherman Frederick (sfrederick@review journal.com) is publisher of the Review-Journal and president of Stephens Media.



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    endrun wrote on October 03, 2008 02:11 PM: I think of the corruption investigations as flushing out the system.


    Sad Summerlin wrote on October 02, 2008 08:39 PM: Shocking the amount of pork in this stimulus plan on both sides...

    This smells gross. Look at some of the pork below.... THIS WAS SUPPOSED TO BE AN EMERGENCY FINANCIAL BAILOUT AND LOOK WHAT GOT ATTACHED!!!!!!

    Provisions related to film and television productions: In order to keep movie production in the U.S., production companies would be allowed to deduct the cost of producing the films from their taxes. Rep. Diane Watson, D-California, has been one of the program's biggest supporters. The measure would cost taxpayers $478 million over 10 years.

    "This proposal would exempt from the excise tax any shaft consisting of all natural wood with no laminations or artificial means to enhance the spine of the shaft used in the manufacture of an arrow that measures 5/16 of an inch or less and is unsuited for use with a bow with a peak draw weight of 30 pounds or more,"

    Extension and modification of duty suspension on wool products, wool research fund and wool duty refunds: The measure helps U.S. worsted wool fabric makers and clothing manufacturers. The bill extends provisions through 2014 or 2015 that were originally sponsored by Reps. Louise Slaughter, D-New York, and Melissa Bean, D-Illinois, in 2007. The measure would cost taxpayers $148 million.

    Extension of economic development credit for American Samoa: The measure would extend for two years provisions meant to help economic development in the U.S. territory of American Samoa. The measure would cost taxpayers $33 million.

    Transportation fringe benefit to bicycle commuters: The measure would allow employers to provide benefits to employees who commute to work via bicycle, such as help purchasing and maintaining a bicycle. The measure would cost taxpayers $10 million.


    Barbara Pergi wrote on October 02, 2008 03:05 PM: Sherm,
    Please say it ain't so. You too? Something cannot be right that was never right. Government intervention through laws and regulation started this problem. How is government buying businesses going to fix this problem? Yes, let's fix the problem, but not by completely shredding the Constitution. Surely, there are other means available to us which will strenghten our great nation other than a complete forfeiting of our freedom. I implore Reps. Berkley, Porter, and Heller to NOT pass this bill. History has taught us that FDR's interventionist policies actually prolonged the Great Depression. This bill is no different. I repeat, something cannot be right that never was. Yes, let's fix the problem, but not by cutting out throats to do it.


    Arthur wrote on October 02, 2008 02:17 PM: Bond market frozen is NOT a concern? Whoever said that has no idea how the real economy flows.

    Unemployment would (will) be at double diget rates before the end of October.


    Virga wrote on October 02, 2008 01:00 PM: Help! WOLF! WOLF!


    patrick wrote on October 02, 2008 12:20 PM: You know, I've been a Las Vegas resident for more than 30 years and I started reading the RJ avidly when I was a mere lad of 17.

    RARELY do I agree with the views expressed in this paper, and I can't remember a time when I agreed with its editors, but credit is due here to Mr. Fredrick; I have seen him monitor these responses to his editorials and respond to them semi-regularly. Kudos for having the integrity to not only say what you think, but stand up for it.

    And now back to our regular programing.


    Sherm Frederick wrote on October 02, 2008 12:03 PM: It is not difficult at all ... Harry did well in this. He showed leadership and made the Senate go into an "orderly vote", which means they had to be there in their desks. Well done. Keep it up.

    Sherm


    Sherm -- I know it's difficult for you, but how about giving credit where credit is due. Reid didn't just vote for the rescue bill, he engineered the entire strategy to garner the impressive, bipartisan majority that voted for it. This is what we expect of our Majority Leader in the U.S. Senate, and we should all be proud as Nevadans that Sen. Reid was able to pull it off.


    Dick wrote on October 02, 2008 11:25 AM: The only thing frozen is Wall Street's political donations to Congress. They have given $100 million to the politicians this election cycle (evenly split between Democrats and Republicans).The $700 billion is payback time. Wall Street has never said that they don't have the money to make loans, only that they don't have confidence that future loans will be paid back. So how is $700 billion dollars going to change that? They will continue making risky loans as long as they are playing with house money.


    John F wrote on October 02, 2008 11:14 AM: um......

    b,

    Federal elected officials can't be recalled; there's no proviosion for it in the Constitution.


    KDR81 wrote on October 02, 2008 10:39 AM: Racheal,

    Who cares if bond markets are "frozen" who cares if inter bank lending is down from last year.

    What matters is the economy is still moving and will continue to move without the bailout. The bailout only shuffles wealth around.

    Mortgage lending and bonds are NOT the only thing our economy does.


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