MARKETPLACE
NEWSLETTER
PAGE 9, OCTOBER, 1975
While the business recovery lags and sags many important industries suffer. Banks,
hotels, real estate, construction, autos, etc., etc., a long and amazing list. Yet,
amusements and spectator sports as well as movies and, most especially, the gaming busi-
ness of Nevada, are clicking along at a phenominal pace.
The difference, it seems, is to be engaged in a business that entertains the public
to be able to outlast recession successfully. For many years after the depression of the
early '30s, and while this business was trying to again orient itself to better business
conditions of the general economy, many would say, "This is a depression business."
As "Marketplace" has reported many times since the late Fall of '73 when this present
recession came into being, and since this has been called "a depression business", then
certainly this industry should be able to survive this recession with flying colors. But
this has been a recession unlike any other in U.S. business history.
Instead of prices of raw materials, cost of labor, cost of finished products, etc.,
falling to low marks, as was actually the case in former recessions and/ or depressions,
these continued to rise higher and higher, along with labor's wages, taxes, interest,
etc., to the point where costs exceeded even boomtime proportions.
Worst of all was continuing galloping inflation that reached up to double digits for
the first time in U.S. history. As, for example, the 14.4% rate of inflation during this
past July,'75. This so badly clobbered the value of the dollar all in the industry were
hard put to come up with profit in keeping with the tremendously increased income brought
into being by "2-Bits Play".
'
Naturally, then, as the cost of raw materials and components zoomed, as labor's wages
went higher, as cities and states felt the economic pinch and hiked taxes droving com-
pletely any tax cuts the federal gov 1 t had made and, most especially, as inflation gall-
oped, the price of new equip't soared out of reach of many, many operators.
This is still "a depression business" for income has continued going up, game rooms
and mini-arcades have boomed, but too, too few have enjoyed boom times. The industry has,
therefore, shrunk. There are fewer operators of routes. Fewer owners. All this does not
gladden the hearts of those who look forward to a much better sales market when and if
this recession ends.
Once again, as it has many times in past months, "Marketplace" appeals to the ingen-
ious and inventive in this industry to come up with more popular priced equip't to re-
capture a growth pattern by bringing into the industry some of the over 8 million unem-
ployed who seek independent enterprise and have the wherewithal to enter into businesses
rather than again turn to jobs where they can, once again, be laid off. No finer oppor-
tunity for greater growth and stability has ever faced this industry. Who will be first
to entertain the necessary economic facts?