Nevada - Economy

Economy

The economy of Nevada has long been tied to vice industries. " founded on mining and refounded on sin—-beginning with prizefighting and easy divorce a century ago and later extending to gaming and prostitution", said the August 21, 2010 issue of The Economist.

The Bureau of Economic Analysis estimates that Nevada's total state product in 2010 was $126 billion. Resort areas such as Las Vegas, Reno, Lake Tahoe, and Laughlin attract visitors from around the nation and world. In FY08 the total of 266 casinos with gaming revenue over $1m for the year, brought in revenue of $12 billion in gaming revenue, and $13 billion in non-gaming revenue. A review of gaming statistics can be found at Nevada gaming area.

The state's Per capita personal income in 2009 was $38,578, ranking nineteenth in the nation.

As of August 2011, the state's unemployment rate is the worst in the nation at 13.4%.

Its agricultural outputs are cattle, hay, alfalfa, dairy products, onions, and potatoes. Its industrial outputs are tourism, mining, machinery, printing and publishing, food processing, and electric equipment.

In portions of the state outside of the Las Vegas and Reno metropolitan areas, mining and cattle ranching are the major economic activities. By value, gold is by far the most important mineral mined. In 2004, 6,800,000 ounces (190,000,000 g) of gold worth $2.84 billion were mined in Nevada, and the state accounted for 8.7% of world gold production (see Gold mining in Nevada). Silver is a distant second, with 10,300,000 ounces (290,000,000 g) worth $69 million mined in 2004 (see Silver mining in Nevada). Other minerals mined in Nevada include construction aggregates, copper, gypsum, diatomite and lithium. Despite its rich deposits, the cost of mining in Nevada is generally high, and output is very sensitive to world commodity prices.

As of January 1, 2006, there were an estimated 500,000 head of cattle and 70,000 head of sheep in Nevada. Most of these animals forage on rangeland in the summer, with supplemental feed in the winter. Calves are generally shipped to out-of-state feedlots in the fall to be fattened for market. Over 90% of Nevada's 484,000 acres (196,000 ha) of cropland is used to grow hay, mostly alfalfa, for livestock feed.

Further information: Nevada locations by per capita income

Nevada has by far the most hotel rooms per capita in the United States. According to the American Hotel and Lodging Association, there were 187,301 rooms in 584 hotels (of 15 or more rooms). The state is ranked just below California, Texas, Florida, and New York in total number of rooms, but those states have much larger populations. Nevada has one hotel room for every 14 residents, far above the national average of one hotel room per 67 residents.

Prostitution is legal in parts of Nevada in licensed brothels, but only counties with populations under 400,000 residents have the option to legalize it. Although prostitution employs roughly 300 women as independent contractors, and not a major part of the Nevada economy, it is a very visible endeavor. Of the 14 counties that are permitted to legalize prostitution under state law, 8 have chosen to legalize brothels. State law prohibits prostitution in Clark County (which contains Las Vegas), and Washoe County (which contains Reno). However, prostitution is legal in Storey County, which is part of the Reno–Sparks metropolitan area.