The U.S. and Nevada economies continue to grow healthier. Nevada’s recent level of employment stands 2.1 percent above the year-ago level. Though momentum is underway, Nevada’s employment growth rate has slipped from the levels experienced in the late ’90s. Still, the Silver State’s job-creation performance remains one of the best among the states. In comparison, U.S. employment is down from the year-ago level by 0.3 percent, having failed to recover from the last peak of 2001. An expected step-up in future spending, nonetheless, creates some traction for recovery and growth.
Structural realignments and concern over growing federal deficits have furthered the concern for the future. This environment makes for some experts being decidedly more pessimistic than otherwise would be the case.
The rising tide of pessimism, however, comes at a time in which fiscal and monetary policies unquestionably support expansion. Generally, expansionary money growth and fiscal deficits work, at least in the short run, to stimulate spending and employment. So far, the mix of monetary and fiscal expansion has worked to soften the recession of 2001 and to quicken the recovery.
The recent anemic growth and a surging federal deficit give reason to wonder about future inflation. Inflation, however, has remained in check. The Consumer Price Index is up by 2.3 percent over last year. Moreover, once the more volatile components are removed, inflation shows an increase of a modest 1.2 percent.
The outlook for the Silver State in the months ahead is positive. Nevada will continue its record of better-than-average economic performance among the states. Nevertheless, though national and global conditions are likely to show decidedly better numbers than in the recent past, we are also likely to live in a world with less growth over a shorter span of time than in the past decade.