Nevada Post World War II

Nevada is a unique state in that it is one wrought with several different industries throughout the years. From mining to gambling, the state of Nevada has seen its economy change and its culture evolve. Much of the force that would change the state would happen after World War II. During the World War II era, Nevada thrived predominantly on mining as its main industry as well as military. After the Second World War, Nevada's tourism sector began to thrive significantly as many Americans began flocking to the state to take advantage of the growth that it was experiencing. It can be said that both the culture and economics of Nevada has revolved predominantly around the city of Las Vegas and its entertainment dynamics.

The Economics of Nevada

There is a legend associated with Nevada as mogul Charles W. Mapes, Jr. is credited with creating and establishing the very first world hotel following the Second World War. According to a newspaper column taken out in Reno Gazette-Journal, the Mapes Hotel is considered to be what began the trend of lush hotels and real estate in Nevada. There were many restrictions as a consequence of the Second World War, and thus building materials were often in miniscule supply. While this was the case, Mapes, understood that there was a need to rebuild the nation following World War II and hence, the Mapes Hotel was constructed in Reno, Nevada. The particular hotel was a pioneering one as it was known as the tallest until another hotel, the Freemont, opened in 1956 (Rocha, 2011). Considering Mapes was the individual who set the tourism sector of the state of Nevada, it stands to reason that much of Nevada's economics are the result of the operation of the high-rise structure of the hotel Mapes built.

The state of Nevada is primarily known for its casinos, among another tourist attraction. While casino gambling has become vastly popular, there is not a heavy amount of research on the subject. The industry heavily contributes to the economy of the state that it is in. A nominal amount of studies have examined the positive effects of gambling and its relative relationship with the economy of a state. Grinols (2004) probed into the economics of job growth as it related to the casino industry but did not provide much empirical evidence to suggest that casino gambling is indeed the driving force in a state's resources, or rather one of them. Grinols' provided a detailed discourse on the casino industry as a whole and how when it is present in a state, the development of that state and the individuals increase significantly. Perhaps the easiest way to ascertain the benefits of a casino to a city or state is to use quantifiable testing in addition to real casino revenue as well as real per capita income. This can be specifically helpful in understanding the dynamics of casino gambling (Walker and Jackson, 2007). When one thinks of gambling, they more often than not consider the state of Nevada, and more explicitly Las Vegas.

In the United States, casinos generate a significant proportion of their revenue from gaming devices - in essence the slot machine. Most of Nevada's revenues come directly from slot machines accounting for more than 40% on average. Table games such as blackjack, baccarat, craps and roulette also contribute to the revenue associated with the state of Nevada. Most casinos in Nevada (Las Vegas predominantly) have not had any new games emerge since gaming became lawful in the state. If consumers see a new game, so to speak, it is often a variant of an existing table game (i.e. three card poker or Caribbean stud rather than regular poker). The state of Nevada, casinos in particular gain their advantage in consumer revenue through what is known as the house advantage. This can usually be measured through analytical methodology. Slot machines are mechanically designed to have jackpot prize increases as long as there is no winner. These progressive payout slot machines were noteworthy attractions in the late 1980s to the present as they have allowed the state of Nevada to become a prime mover in keeping revenue high (Eadington, 1999). While rationale has been put forth that gambling has both cause and effect results, it can be reasoned that the pure chance event that is gambling has been extremely profitable for the economics of Nevada. 

Las Vegas is quite possibly the most recognized entertainment capital in the world. Throughout its fine dining, prime lavish hotels and vivacious night life, the unprecedented success began more or less following the Second World War. Last Vegas has adapted throughout the years with its shifting revenue. Prior to the start of Las Vegas, a highly regarded metropolis, it was a relatively small town that was mainly served by that of Los Angeles as well as San Pedro. In 1931, the state of Nevada became the first state to allow gambling legally and that continued to push the state into the limelight globally (Casper and Davies, 2007). 

That particular globalization opened the door to organized crime. It can be argued that much of the economy of the state; or rather Las Vegas became distinguished and received tremendous growth as a result of mob activity. While the city of Las Vegas was already affirming its image across the world, organized crime pushed that to the limit as more and more mobsters began seeing the city as a successful launching pad for their presence. The government, however, would begin cracking down on the mob throughout the 1930s and 1940s (Casper and Davies, 2007).  That is not to say that organized crime was still not a visible operation of large-scale profitability in the city of Las Vegas and more importantly Nevada, but that there was discretion as to where the revenue to a certain extent was coming from. The mob would have a notable impact on the rest of the nation as well. Many of the prime mobsters such as Bugsy Siegel are well-known for their operations in the state of Nevada and the effects these operations caused on the state and the perception that Las Vegas has in most individuals’ eyes. 

By the 1950s, Las Vegas was a major boom for tourists and residents as the organized crime element was quieted down. The growth of casinos continued throughout that decade and since then has become the backdrop of Nevada's economy, although not the only source of revenue. Nevada has been able to capitalize on its convention element as well as retail and restaurant venues to drive up revenue. Hotels have become the norm, especially on the well-known Las Vegas Strip, which is where the main part of the entertainment industry exists in the state of Nevada. Las Vegas has also become a significant economic boom as a result of redevelopment efforts. While many of these efforts came toward the end of the 1990s, the city has seen significant increases in revenue as an after effect (Casper and Davies, 2007; Simpson, 2012). Nevada and more importantly the city of Las Vegas would continue to flourish up until the recession that began in 2007.

In spite of much of the flourishing of the state of Nevada, the state stood at a critical juncture with the recession. It hit the state quite hard with consumption related sectors leaving the economic in a volatile state. Due to the challenges associated with the lack of diversity within state as far as innovative activities, trends associated with the state were interesting to say the least. After the recession in 2007, Nevada's economics took a serious nosedive, when it lost roughly 10.4% of its jobs. These jobs were predominantly concentrated in the state's two consequential metropolises. Home prices also fell by more than half and the epicenters of the state almost faced foreclosure. The experience that happened with Nevada was disproportionate due to the dominance of Nevada being reliant on gaming as well as tourism and retail mostly. It has been reasoned by many analysts and economists that Nevada can benefit and rebound from the catastrophe of the recession by developing its innovation capacity. The state has continued to lag in that area and has not taken advantage of its R&D investments ("Unify Regionalize Diversify: An Economic Development Agenda for Nevada," 2011). As a consequence of this there has been a lack of revenue for the state. This of course, leaves the economy in a mostly weakened state. That is not to say, however, that Nevada cannot and has not come up with ways by which they can commercialize their state once more and balance what was lost during the recession.

The Culture of Nevada

The culture of Nevada is frequently known for its vice industries (i.e. casinos, prostitution, etc.). There are agricultural components in the state such as cattle, dairy products in addition to onions and potatoes. In addition to the tourism industries, the state of Nevada still operates mining as well as machinery, food process as well as electric equipment. The costs associated with mining in Nevada, although a prominent industry before and during World War II, are typically high yielding intercontinental commodity price sensitivity. Nevada is not renowned for professional sports teams with the majority of them being in baseball on a minor league level. By and large, much of the focus of Nevada is more often than not centered on the city of Las Vegas and its particular peculiarities ("Unify Regionalize Diversify: An Economic Development Agenda for Nevada," 2011; Casper and Davies, 2007). Other than the casinos and hotels, as aforementioned, Las Vegas has continued to expand its attractiveness. This has been achieved through the establishing of both shopping malls as well as boutique shops centered both on the outskirts of notable cities in the state and on the strip of Las Vegas. Nevada is home to many museums that include The Las Vegas Museum of Organized Crime and Law Enforcement, as well as Las Vegas' Natural History Museum. Las Vegas is also a prime spot for martial arts events such as UFC as well as boxing matches. The majority of these events take place within one of the hotels in the city ("Unify Regionalize Diversify: An Economic Development Agenda for Nevada," 2011). The state of Nevada in spite of its difficulties is quintessentially American.

Quintessentially American

It can be argued that Nevada is a quintessential American state given its differences from other states. While every state has their pros, Nevada has Las Vegas, which despite the concerns and issues surrounding the tourism sector, is still a city known for gambling, gaming and retail even in the midst of the burgeoning Mormon community. No other city compares in that regard, not even Atlantic City; which many have often likened to Las Vegas with its casino operations as well. The crux of a quintessential state though is continued propensity in spite of an influx of people and resource fluctuations. The state of Nevada has benefitted supremely from its global influence and media centers. It is a historical state in the sense that in recent decades, the world has come to know it by its attractiveness in both residential and retail arenas. More and more businesses are opening within the state and people are migrating to diversify the populace there. Nevada is a sort of melting pot in terms of population, with people of all backgrounds and ethnicities living there. 

Every year, the state attracts many tourists who flock to the various hotels and participate in the gaming outlets in Las Vegas and some of the surrounding cities. Nevada is a prime institution for the spirit of America because the primary elements of the United States are found there - excitement, prosperity and the so-called American Dream. The state is a testament to the fact that changes do occur and can be adapted to. Reasoning suggests that Nevada will continue to be known as the place to go for gambling and tourist events and will try to capitalize on other areas that have made other states profitable as well. It may not be quintessentially American in terms of sports and innovative development, but the state certainly encompasses many advantageous benefits to the tourism sector.

References

Casper, S. E., & Davies, R. O. (2007). Of Sagebrush & Slot Machines: This Curious Place Called Nevada (2nd ed.). Boston, MA: Pearson Learning Solutions.

Eadington, W. R. (1999). The Economics of Casino Gambling. Journal of Economic Perspectives, 13(3), 173-192.

Rocha, G. (2011). MYTH #42 - The First Hotel Built in The World After World War Ii? Retrieved June 26, 2013, from Nevada State Library and Archives website: http://nsla.nevadaculture.org/index.php?option=com_content&task=view&id=714&Itemid=418

Simpson, T. (2012, February). Tourist Utopias: Las Vegas, Dubai, Macau [Working Paper]. Retrieved from Asia Research Institute website: http://www.ari.nus.edu.sg/docs/wps/wps12_177.pdf

Unify Regionalize Diversify: An Economic Development Agenda for Nevada[Agenda]. (2011). Retrieved from THE BROOKINGS INSTITUTION website: http://www.brookings.edu/~/media/research/files/papers/2011/11/14%20nevada%20economy/1114_nevada_economy.pdf

Walker, D. M., & Jackson, J. D. (2007). Do Casinos Cause Economic Growth? American Journal of Economics and Sociology, 66(3), 593-607.