When you suck discretionary income from the local economy, do you believe it is limitless?
Taxpayers Face Bailout Of Casino Industry Says The Counter Media
PR Web
Las
Vegas, Nevada (PRWEB) November 19, 2012
American
taxpayers are faced with a huge bailout of the casino industry according to a
soon to be released White Paper, says thecountermedia.com. The report is
scheduled to be released January 2, 2013. The report sights that the casino
industry has all the elements that led to the auto and Wall Street bailouts such
as high debt, a heavily saturated market, and no national policy on how the
industry is ran. An Associated Press report in September of this year validates
the study's conclusions, and sites that the bailout has already began in
Atlantic City
(http://www.businessweek.com/ap/2012-09-24/poll-keep-casinos-only-in-ac-no-state-tax-breaks).
A CBS news report dated September 16, 2011 gives details of the beginning of the
taxpayer bailout scheme with the rescue of the Atlantic City Hilton (known as
the ACH) to the tune $24 million.
The
report also points out that 2 of the top 4 casino companies, MGM, and Caesars
are over $33 billion in debt and according to 3rd quarter earnings reports lost
a combined $650 million plus
(http://calvinayre.com/2012/11/12/casino/can-mgm-and-caesars-outrun-their-debt/).
Wall Street analysts have noted that both corporations have seen their stock
plummet since the 2008 recession with MGM closing at $9 a share, and Caesars
closing at $5. The report cites that due to the mirror circumstances that led to
collapse of the Motor City auto industry and Wall Street banks, it is inevitable
that the casino industry must be bailed out or allowed to collapse, causing an
even more devastating economic disaster. This is in large part due to the fact
that Las Vegas and Nevada depend on the casino industry as their economic golden
goose, with MGM being the state's largest employer at 50,000 jobs and
declining.
The
model of depending on casinos as an economic cure all has been adopted by dozens
of states, who also face the same collapse as the main Vegas players go under.
The report examines Las Vegas, Atlantic City, and the states that have adopted
casinos in order to create jobs and add tax revenue to the local coffers.
Michigan is used a prominent example of the perilous situation tax payers find
themselves in. Michigan approved 3 Las Vegas style casinos in Detroit in the
late 1990's in an attempt to rescue its economy from years of stagnation. 15
year later Detroit and Michigan have seen a devastating rise in unemployment,
crime, and loss of businesses in site. Michigan like Nevada, Mississippi, New
Jersey, California, and other casino saturated states are at the top of
America's jobless list according to the Bureau of Labor Statistics
(http://www.bls.gov/web/laus/laumstrk.htm). Most of these states have doubled
down on opening more casinos, which Michigan looking at opening 15 additional
gambling dens on top of the 23 that already exist. Statistics also show that
casinos cause more jobs than they create. Casinos create 4,000 jobs per billion
dollars spent, as opposed to small business which create 29,000 jobs, and
infrastructure projects creating nearly 50,000 per billions spent
The
report reaches the conclusion that it is an economic impossibility for casinos
to bring in revenues or patronage that would end the downward spiral to industry
collapse. Due to the ready availability of casinos in cities from coast to coast
gamblers will not bear the expense of airfare and lodging to travel to either
Atlantic City or Las Vegas in significant numbers. The report also sites that
both politicians and casino moguls have also reached that conclusion are seeking
to open new markets in cities like Toronto, Canada, ban additional casinos in
Atlantic City, and out of desperation Las Vegas mayor Carolyn Goodman is calling
for the legalization of prostitution, marijuana, and transferring the porn
industry from Los Angeles to Sin City
(http://www.8newsnow.com/story/17243086/game-changer-legalizing-prostitution-marijuana-pornography-filming).
The most startling conclusion of the report is that if the issue isn't addressed
in early 2013, entire states will face bankruptcy due to the staggering number
of municipalities that will fail due to the casino industry collapse. This will
result in the country suffering another economic recession on par with the
disaster of 2008.
Read
the full story at http://www.prweb.com/releases/2012/11/prweb10142359.htm
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