Thursday, October 09, 2008

The Credit Crisis and New Orleans

According to the WWL, the credit crisis is going to slow down our recovery.

I'll try not to notice.

There was one selection that jumped out at me:

Miestchovich said if there is a prolonged recession, there are two sectors which would suffer the most in New Orleans: the Port of New Orleans, in terms of world trade, and the tourism and convention business.

That's so fascinating because we really only have those two sectors. One of the things that has made me most frustrated by conservative Nagin recovery policy has been this ridiculous approach to economic development that seems to favor dumping all available resources into inflating the profits of the port and of the corporate tourist economy. When we could have been investing in grants for entrepreneurs, getting in on the ground floor of the green jobs movement, or otherwise diversifying our stale portfolio, we instead continued to shower favors on the preexisting bohemoths.

So what are we going to be left with when our two sectors take their hit?


E.J. said... rides on empty boats to our new hometowns of choice? OH, and a coupon for 15% off our next hotel stay, for when we gotta come back for pointless meetings with the Road Home Concept.

Clay said...

We still have oil. The Harvey Canal is booming with service companies. Shell still has over 1,000 white collar employees in the city.

We still have the universities.

We still have NASA and Lockheed in Michoud.

New Orleans still have the Federal Circuit court.

There's still some economic base left in the city beyond tourism and trade.

jeffrey said...

Really, Clay? I thought we just sold each other bamboo underwear.

E said...

I don't know if those classify as an economic base. They seem more like economic accessories.

Francine Stock said...

from wikipedia, via the ivory tower

"Prior to Katrina, Tulane University was the largest private employer in the city of New Orleans; immediately afterward it became the city's single largest employer of any type - public or private."

E.J. said...

The criminal justice and inflated government contract sectors are booming and solid!

E said...

Right, the university is the city's largest employer. But how much revenue does it generate for the city?

E said...

E.J. properly identifies the fastest growing sectors of our economy.

FrancineStock said...

Personally, I don't receive any revenue from tourism. But as as the owner of double, we receive monthly rent from college students. It would be interesting to evaluate the economic impact of Tulane (and the other universities as well) vs. tourism.

jeffrey said...

Quite right, e and E.J. Knocking Shit Down is big biz these days. Nagin wants us all to "buy some dirt" Pretty soon that's all that'll be left.

E said...

Don't worry Francine, I'm not knocking the universities. They're important. I'm just sayin' about the port and the tourism and this city's fear of diversification post K, you know?