For the past 16 years, Stephen M. Miller has had a front-row seat aboard Las Vegas’ high-speed financial roller rollercoaster, one that’s featured more weaves than a Hitchcock flick. It’s a seat for which most financial lovers would have paid leading dollar, however one Miller nearly skipped. “Both my partner and I were a bit worried about relocating to Las Vegas,” said Miller, who like numerous an outsider equated Las Vegas with The Strip prior to moving here in 2001 from the University of Connecticut. Now director of UNLV’s Center for Service and Economic Advancement, Miller has actually observed our economy from the heights of enormous prosperity to the depths of a Great Recession to a healing that has homeowners feeling both enthusiastic and nervous.
When I arrived in Las Vegas, we were just beginning the housing bubble. By 2005– which was sort of the peak time– homebuilders were offering possible purchasers a lottery ticket that stated, “OK, if we draw your number, you can purchase our house.”
As an economic expert, that doesn’t make a great deal of sense. If that holds true, why don’t you raise the price so you don’t have an excess demand for your item? If I was truly smart, that would’ve been the signal that, “This is not sustainable.”
I have no idea that I thought our economy was in hazard. Of course, I was brand-new to the scene, however the majority of people thought Las Vegas was unsusceptible to economic crises. We ‘d had recessions prior to, however they didn’t have much of an effect on our economy.
The new characteristic of this recession existed was a financial crisis set off by the housing market and mortgage-backed securities. There weren’t many individuals who knew that when the housing market collapsed and mortgage-backed securities ended up being harmful that it would spread to other parts of the monetary market, which it did.
In the next 5 years, I believe the probability is pretty good that we’ll have another economic crisis. The question becomes “How severe will it be?” God prohibited it’ll be connected to another financial crisis. More likely it will be simply a run-of-the-mill recession.
My issue for millennials is this may be the generation that doesn’t live as well as their moms and dads did.
I think if we asked our new administration in Washington, D.C., they ‘d state, “Oh, we’ve got the solution. We’re going to grow financially at 3, 4, 5 percent.” Well, perhaps for a year or so. However it’s going to be tough to sustain. We have this group of retired people coming out of the employment market who are going to put a stress on our federal budget through Medicare, Medicaid, and Social Security.
Eventually, Washington, D.C., is going to need to resolve that concern. They cannot keep kicking the can down the roadway.
Nevada’s greatest untapped financial source is most likely our population. However we face one problem: The level of education of our manpower is not competitive at the moment.
One way to get a much better informed workforce is to employ people from outside Nevada. Another way is to train them internally. It’s much better if we might train them internally.
UNLV is going to play a huge role in our economic future, definitely as the UNLV Medical School comes online this year. That possibly could have a big economic effect because we have a shortage of medical professionals. I know I needed to go from state when I had a medical problem, and just today my good friend went to California for surgery.
There’s been discussion for a long period of time about diversifying our economy. I have a good friend who says, “It’ll never happen. This is Vegas, baby, and that’s the way it’s going to be.”
Definitely the guv and his workplace of financial development are attempting to diversify the economy. And they might take some criticism for giving away these tax abatements to lure business to relocate here. The problem is every state is doing this; if we don’t complete, we’re going to lose.
For the majority of cities, a brand-new arena would most likely be financially neutral– it has some favorable advantages however likewise some negatives. Las Vegas is special due to the fact that we do have a lot of large events and tourism is still our significant driver. So if the new arena draws those 50 events they’re speaking about, it probably pushes the stadium into a positive for the regional economy.
I said there’s a concern about Las Vegas’ lack of an informed labor force, but we actually have some great trainees who come out of UNLV that I would set up and match versus students anywhere.
I always tell my students if you stay awake, you can discover something every day.