Tuesday, August 2, 2011

What are the strengths Nevada has in the market place and what are the weaknesses?

The first question answered, Cut the red tape, cut the cost of fees, taxes, regulatory compliance, and speed up our ability to start a business along an economic scale, to allow small business to grow and give larger concerns more accountability. But what does Nevada have going for us and what are our detractions. Being a small business person for all these years I fully realize that there are two sides of the coin in everything. Our housing market is in terrible shape, yet that means we have a large inventory of homes that will be dropping in value. Inexpensive housing cost will give us a selling point in the region. Can we bring manufacturing into the area, Nevada has ore, Nevada has minerals, and we have the vacant land to build a manufacturing operation, we also have federal regulations stopping much of this asset from being used. We have the rail, and road system to deliver product to the coast, we have a large vacancy rate in our warehousing district, giving us a potential sales point to bring in business, but the vacancy rate does not give the area a vibrant appearance. The negatives are that we are losing population, thus we are losing local sales potential. So we have to lower cost to sweeten the pot to have someone take a gamble on this area. Yes this goes back to my first question. Our schools have been a large contention issue, for some stating that we do not have the educated workforce to bring in business. Our rankings and the quality and all are not large issues to me. For much of these arguments I find it is a justification to maintain or increase their budgets. The cost per student is only relative to the cost of living and the potential salaries that an area can expect. Our past dependence on Gaming has put a downward pressure on salaries and helped many college grads leave the area to find other work. The negative is also a positive. Gaming is greatly diminished, for many reasons we have to look outward to diversify and grow our economy in new and different ways. This should have a positive outcome on salaries and keeping more of our educated college students here in the area. Is our education expense too high, I say yes, we have given our universities a rate of growth that has greatly outpaced inflation? Hey I understand self preservation, I get it. But we need to lower rates to increase our volume of business activity; this will not only bring in the needed revenue but give the state a more stable economy that has fewer types of ebb and flows. Regionally we are lower than California, but I believe that we could lower our rates and bring
The argument from the left is that we are taking away needed revenue, I would argue that by building our economic engine and diversifying it we would achieve a more stable and long term revenue stream that would help us provide all these needed services. The problem is that we are out of balance. We have a big need for services yet we have burdened our economic jobs engine so that those of us that are working cannot provide the needed revenue that we need to generate. We need to reduce the need for these services, by reducing the cost of living by lower rates we achieve small business to feel confident enough to grow and expand, this will equate to new jobs, and this will reduce the need for services. It is all interrelated. I know that this means Government job loss, yet if the Goal is to reduce cost and shorten the time it takes to start up a business; this job loss would be minimized by new job growth.

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