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South Tahoe council told economic recovery is years away


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By Kathryn Reed

South Lake Tahoe’s economy won’t improve until the country’s does.

That was the message Brad Schiller, an economics professor at UNR, delivered to the South Lake Tahoe City Council on Feb. 21.

“South Lake Tahoe’s economy cannot recover on its own,” Schiller said. “That is not to say local policies don’t have some impact.”

Schiller was invited at the urging of Councilman Tom Davis. But he didn’t have any words of wisdom beyond, “I would encourage the council to adopt a pro business perspective.”

He doesn’t foresee the country returning to full employment for at least six years. That would mean dealing with the 8.3 percent unemployment rate. However, Schiller didn’t mention the percent of unemployed in the city limits is 15 and if that figure might take longer to reduce.

In other action the council:

• Received a rebate check for more than $8,000 from Liberty Energy for retrofits. The city is expected to see a savings of $10,000 a year.

• Was told by Tom Wendell, Sustainability Commission member, the council could soon expect to see an agenda item about banning plastic bags in town.

 

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Comments (10)
  1. earl zitts says - Posted: February 23, 2012

    So Professor Schiller knows how to state the obvious. I hope and trust the presentation didn’t set the city back too much.

  2. PubworksTV says - Posted: February 23, 2012

    SLT, El Dorado County and the State of California are all on a path of economic destruction.

    It’s not news, it’s not rocket science – frankly to many of us it was an inevitability and as easy to see as the nose on your face.

    If you want to start fixing the problem then you should be talking with the people that predicted this situation 15 plus years ago.

    You are where you are because you follow who you follow.

    From here it gets worse.

  3. Hang Ups From Way Back says - Posted: February 23, 2012

    Did they really need to have someone tell them that?

    These council members are suppose to be a little brainy.

    Or is that our imagination working on us?

    All we need is another paid Pro BS-ER they sign anything.

  4. Alex Campbell says - Posted: February 24, 2012

    Three Cheers for the Three above

  5. Garry Bowen says - Posted: February 24, 2012

    “That is not to say that local policies don’t have some impact” . . .the most important quote in this story.

    If the “powers-that-be” weren’t so busy ‘licking their wounds’ of immediate past flagrant mistakes, then compounding them by inviting someone like Professor Schiller, they might actually have the time to discover what else is going on in the country that “aspires to inspire”. . .

    Duh !! – Tahoe has never been an economy that stood on its’ own, relying as they do on others coming from virtually everywhere to bring money with them – it is not ‘rocket science’ to then notice that Tahoe has become not-too-adept at “promotion” (i.e., short-term events that others bring) than “marketing” – (the terms are not interchangeable) – as in asking, Why would anyone want to come here ? What do we have to offer them (besides the obvious)?

    Marketing asks the questions: why are we here ? How are we to differentiate ourselves as worthy ? What can we offer that others cannot ?

    A major marketing campaign “positions” one to make sales – and what position is Tahoe in ? what product are we offering ? And is that product ready for market ?

    We have not asked the fundamentals in decades now – since Harvey Gross & Bill Harrah found a way to make a sleepy little mountain town a major employer, while their successors only “whine” that gaming will never be the same (it’s ‘changed’; it’s ‘not the same’, etc., etc.)

    Talk about serial dysfunction !

    Well, who’s fault is that ? And who went along with whatever pablum new operators dished out, as if they knew what they were doing ? Buying & selling of motels, restaurants, and even casino interests do not assure ongoing success – but somehow everyone here thought that was to be some sort of answer – without questioning it at all. . .

    Now, absent any proper perspective to deal with what comes next, we are busy “rearranging the deck chairs on the Titanic”, in listening to any answer that comes down the pike – having no answers of their own. Or even especially any of the right questions.

    As Albert Einstein is known for, “doing the same thing over and over again, expecting different results, is a definition of insanity”. . . A better Einstein for Tahoe is “look deeper into nature, you’ll understand everything much better” – there is on the horizon an impending societal need for the next generation to know more about the world around them, but “Tahoe South” & STAR think that by reinventing the “gaming” wheel, we will harken back to what they imply will never be the same – Duh !

    New ideas aren’t forthcoming, as everyone seems to rest assured with what they have already, even as they say it isn’t enough. . .

    What’s that about ? Professor Schiller can be proved wrong – has to be wrong – as who realistically wants to wait 6 years ? – while another third moves away ? While 15% goes down to 12 % ? All at non-livable wages and hours ? Then to 10% ?

    And while the City Council plays “musical chairs” as Mayor, Mayor Pro Tem, Councilman, ad infinitum & nauseum, as they have since the City was formed in 1965 ? Is anything going to make a significant difference (?) – it hasn’t so far. . .

    That is the crux of Mr. Schillers’ conclusion. . .

  6. 4-mer-usmc says - Posted: February 24, 2012

    I’ve only lived in SLT for 12-years but have always believed (and said) that SLT must be more economically diverse and not a one-economic driven town with all our eggs in the tourism basket. When the economy tanks and people don’t have discretionary money to spend SLT always suffers greatly economically. Why doesn’t someone (the City or Chambers) pursue bringing other diverse industries to SLT such as non-profit research organizations, especially in environmental fields; or customer service type businesses; industries that utilize people working in offices so that when recessions occur the economic impact can be more level and not so extreme.

    Mr. Bowen’s quote by Albert Einstein of “doing the same thing over and over again and expecting different results…” is absolutely applicable to SLT. Stay only with a tourist economic driver and the associated retail/service businesses and when the next recession hits we’ll economically sink again, and we’ll sink in every economic recession thereafter. That’s providing we ever get out of this current recession.

  7. biggerpicture says - Posted: February 24, 2012

    Former USMC,
    Tourism is it, and always will be. The industries you mention would require a large percentage of educateed workforce (and a strong inrastructure with excellent educaton oppurtunities for the children of that work force) which is a challenge in a transient resort town (not dissing anyone, just be raelistic). Turning LTCC into a four year scholl would be a step in the right direction, but the chances of that happening are slim to none.

  8. 4-mer-usmc says - Posted: February 24, 2012

    biggerpicture:

    You’ve made some really valid points but I think something along the lines of the suggestion I mentioned could be accomplished with some good planning and execution. My fear is that SLT can’t survive let alone prosper if some new ideas aren’t identified for diversifying the economic driver to include something other than only tourism. This economic roller-coaster we’re on will only continue, and the lows just keep getting lower.

  9. Garry Bowen says - Posted: February 25, 2012

    ‘Environmental education is what my subtle reference was about as a strong economic development driver to accomplish vitally necessary ‘diversification’. . .

    The writer is right about its’ “visitors (only)”, but familes wanting a better future for their children can fill ‘vacancies’ just as well as “partiers” or those “looking to have a good time”-just a more complete & wholesome “good time.” This is also consistent with a local (and national) service economy.

    Look closely at the “No Child Left Inside Act” bipartisan legislation troduced in both houses last July 14th – this direction will work to Tahoe’s advantage -if enough people can get their heads out of the sand . . .

  10. Hang Ups From Way Back says - Posted: February 25, 2012

    work to Tahoe’s advantage -if enough people can get their heads out of the sand . . .

    If people pulled their head out the sand with all the towns intellectuals, they see that the children weren’t left behind, the left because their families did from lack opportunities, good paying jobs,foreclosed homes,and the older residents are still waiting for the ship to come in that was so well planned out to fix the leaking so called broken town town that use to count cash ever night the week.
    Buy a better pair Glasses take a ride down highway 50, check out all the business that not there anymore.
    That’s the real writing on the wall.
    Holidays,soup lines,weekends, are keeping this place afloat, not good opportunities for younger families that don’t have pensions,health insurance.