LAS VEGAS (FOX5) -- The water level at Lake Mead is drawing a lot of attention from economists, as economic stability out West faces uncertainty.
Jeremy Aguero is the principal analyst with Applied Analysis. He performs economic forecasts that are used widely by Las Vegas, Henderson, Station Casinos, Boyd Gaming and the UFC.
Should the government declare a critical water shortage at Lake Mead, Aguero weighed in on the likelihood of an economic threat. He said the drought creates questions about the region’s economic stability but he pointed out how impressed he was with what the Southern Nevada Water Authority has done. More aggressive conservation techniques and technology is needed to get the most out of every gallon.
Clark County and the water authority have provided models for conserving water, Aguero said. He added that the Colorado River is not equipped to solve all the problems. More aggressive conservation techniques and technology is needed to get the most out of every gallon.
The economic recovery is not business as usual, according to Aguero, we are 12 months out from a full recovery. The worker shortage is slowing the recovery down. Aguero said it’s not just because of the extended unemployment benefits. Other factors include some workers have genuine fears about the virus and continue to stay home. Other families have had to restructure with one parent staying home with their children. Aguero stated that improvements have begun and he expects even more improvements by September.
Aguero expects inflation to hit over the next six months. He said inflation in wages and salaries could sound great until businesses decide to pass that onto consumers.
Too much money and chasing fewer goods, including housing. Aguero is concerned about what he sees as the unsustainable double digit on top of double digit housing gains. It’s outstripping incomes and he has concerns about the housing market affordability and stability if the trends continue until the end of the year.