In The News: Department of Economics

The suddenly fraught future of the Thacker Pass lithium mine cleared an unexpected hurdle on Tuesday, after the Trump administration agreed to release the first part of a loan critical to the Nevada project’s development in exchange for the U.S. government taking a stake in the effort.

Washington is bracing for a government shutdown as federal agencies prepare to halt non-essential operations at midnight. Stephen M. Miller, a professor of economics, explained the potential consequences for local residents, particularly veterans who rely on federal services.

Tonya Harvey is always on the go as a freelance photographer, and when she needs a quick pick-me-up, she’ll order a kids’ meal. “I don’t want to waste the whole workout for the morning, but I’m hungry in between gigs and its just enough, gets you through one gig to the next,” Harvey said. “I don’t do it everyday.” And she’s not alone. Lightspeed Commerce surveyed around 44% of adults who order from the kids’ menus at restaurants.

The economic impact on the local economy is hard to overstate. Canadians pumped $3.6 billion into the Southern Nevada economy and supported more than 43,000 jobs, notes UNLV economics professor Stephen Miller. When Sen. Catherine Cortez Masto (D-NV) joined a bipartisan delegation to Ottawa in July to make nice with Prime Minister Mark Carney following Trump’s blustering insults about making Canada the 51st state, it was a reminder of what’s at stake. It’s hard enough to do business in a competitive marketplace when the president is bent on driving away customers.
This summer, other border states are experiencing a different kind of drought: a dearth of Canadians. Vermont to Canada border crossings were down nearly 39% in July from the year prior, per data compiled by the state. According to Statistics Canada, Canadian spending in the US plunged 7.9% in the first quarter of 2025 from the same time in the year prior. (Ironically, in the same period, Americans made more trips to Canada than the year prior, and spent 27.3% more.)

The Federal Reserve cut its key interest rate by a quarter-point Wednesday and projected it would do so twice more this year as concern grows at the central bank about the health of the nation's labor market.
Mark Tremblay, an assistant professor of economics at the University of Nevada Las Vegas, saw a connection between casinos using dynamic pricing for room rates and rolling them out elsewhere in the business. “It is clear that this is a trend we will see moving forward as physical stores begin to use digital price tags more frequently,” Tremblay told the Review-Journal.

While manufactured homes can be of high quality, they tend to depreciate faster than traditionally built homes.
It can be difficult for hotels and casinos off the Las Vegas Strip to survive with all the upscale competition that's just a few miles down the road. Some off-Strip resorts have managed to survive for decades, but even legacy properties are vulnerable to economic uncertainty.

The One Big Beautiful Bill Act lowers the threshold for affordable housing developers to qualify for federal, noncompetitive Low-Income Housing Tax Credits and increase the amount of competitive credits available by 12 percent. Consulting firm Novogradac predicts these changes could result in the financing of 1.22 million additional affordable rental homes by 2035.

On the first day of her first-ever trip to Las Vegas, Julie Brenner said the cost of a bottle of water caught her attention. The 29-year-old from Miami said she remembered the price because even in her hometown, paying more than $5 for water would seem high. That is why it stood out to her when the very next day, the same bottle from the same store was a different price.
Las Vegas, known for its vibrant hotels, casinos, and entertainment, has seen a downturn in tourism, influenced by a variety of factors.