Ran across an interestting article from a former Detroiter, Mary Riddel turned economics professor at UNLV comparing the problems staring at Las Vegas with the problems that hit Detroit (and Michigan) in the 1970's and continue today.
As we all know from living here, Michigan and Detroit have struggled to diversify their economy away from the auto industry, and have also fallen behind in educating their workforce. In fact, Michigan's population just dropped below 10,000,000 for the first time since 2000. (See, Michigan's population drops below 10M). Ms. Riddel warns that Las Vegas may be facing the same fate.
With the economy still reeling, an overreliance on gaming and the travel and leisure industry has left Las Vegas suffering more than most. From the article:
"Let's be careful comparing Las Vegas to Pittsburgh and Detroit because our story hasn't played out yet," she said. "But it's in decline. We have increased competition. We had massive home price increases. There were people smart enough to say, 'I can't afford to buy a home.' I don't know how many people.
"We're at a crossroad. We don't need any more houses. The gaming industry doesn't need any more expansion. What about new industries? What can we take from Detroit? What can we do better and cheaper than other places? What are our resources?"
Will Las Vegas look to Detroit's struggles and try to diversify their business base? Will the economy turn around and Las Vegas reclaim its footing? Or, will Las Vegas become the next Detroit?
For more information, please see Does Las Vegas face a similar fate as down-and-out Detroit?
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