The Economy of Leesville, Louisiana - Essay Example

The Economy of Leesville, Louisiana History: The of Leesville Louisiana, United s is the county seat of Vernon Parish which is too different from the hub-bubs city life. Leesville on State Highway 80 is located in the south-western province of Gonzales County. This city is the residence of Fort Polk U.S. Army. It was originally settled on the east bank of Castlemans Creek. And later it was named ONeill Creek after the name of Henry ONeill who reached here with his family in the year 1830. Initially the name of the town was Capote after the Capote Hills. A treadmill was set up in 1860 by Sylvester A. Hubbard for grinding corn and sawing lumber. The first commodity store was opened by Daniel brown and his brother in the year 1868. On the west bank of the creek Newburn H. Guinnthe divided the land and sold out by making allotment for various business ventures. In 1870 he named the society as Leesburg. A post office was set up in 1873 and in the year 1874 the name was changed to Leesville. Growing cotton became the major occupation in this area after the Civil War. In 1900 railway construction was developed and by mid-1930s highways was also set up. Ranching, peanut and melon farming are the major occupations in Leesville. During 1968 to 1990 the population of the city was 150 and by the year 2000 it had seven rated business (Brown, n.d.). The Economy: There is diversification of business within Louisiana. The government is very cooperating and keeps the upcoming entrepreneurs posted with the resources available for developing an enterprise within the state. The state of Louisiana is basically an industry based economy. The industry is mainly based on the natural resources like timber, natural gas, oil and water. The gross state product in 2001 was $148.7 billion out of which mining contributed $28.1 billion (Louisiana Economy, n.d.). The Present Situation: In spite of a worsening economic situation across Unites States, many residents of Leesville are enjoying abatement from the pain of fiscal suffering. According to Rand Alford, the owner of Alford Motors, Leesville’s condition is much better than many other states of America. His auto sales business has won recognition for his successful business ventures from the Leesville Rotary Club. He considered the city of Leesville to be safer and secured due to the presence of military in their area. Most of the business persons are of opinion that people of Leesville are fortunate enough to rescue to some extent from the economic crisis that has affected the national economy. As stated by Tammy Brafa, the managing broker of Magnolia Realty, their business ventures have flourished in recent times. The military operations in the city of Leesville/Vernon Parish and Fort Polk make the place depression proof. Gene Koury, the owner of Gene Koury Auto Sales reported that people of Louisiana continue to purchase cars at a usual rate which indicates that the economy of this area is supporting the financial distress of the national economy. Focusing on the automotive sales industry, Alford Motors owner cleared that the demand in Leesville prevails, but the loans, which are normally provided by the national lenders, are becoming tougher to access. The way credits are getting tightened with the banks, the self- financing attitude will prove to be an asset to many of the manufacturers. In the month of January 2009, over 3,500 soldiers have retreated back to Fort Polk from a 14-month military operation to Iraq. That arrival of soldiers and their expenditures to the Leesville area accompanied with a very significant increase in unemployment and financial battle across the rest of United States (Walker, B, February, 2009). The unemployment rate in America is currently at 7.2% as recorded in December 2008 and phenomenally increasing (CIA World Factbook, 2009). The depreciation of the values of property and real estate are another considerable economic issues affecting United States of America but Leesville is exempted much in regard to the housing estate market. According to a managing broker the retreat of the military troops from Iraq and Afghanistan will boost up the market and it will definitely create an excess demand of goods in this economy. According to John Crook, the executive director of the Vernon Parish Tourism Commission recession has no negative impact on travel and tourism and he foresees a bright and fruitful economy in the coming years. The money is flowing in the economy as long as visitors are operating business at Fort Polk. Crook made it clear that many of the people who visit Leesville are administering business at Fort Polk, which continues to provide stable cash flow. The other regular visitors include the retired persons, who have voluntary income regardless of the present economic condition (Walker, February, 2009). One possibility that rule out the above assessment is the anguish faced employees of Ameri-Tech, a business organization that generates modular buildings particularly traded to oil companies for applying at far- flung drilling sites.  During the month of November, 2008 till January, 2009, the Ameri-Tech plant had sacked 80 percent of its total labor force which resulted in loss of jobs of over 100 people. The hours of remaining employees are cut by nearly one-quarter by the company. Even the Ameri-tech plant was not available for any comment when they were questioned by the political parties. Those who stayed from the very inception of the industry were also not spared from laying-off. More worries aggravated when state budget threaten to cut out 60 jobs from Louisiana State University, Alexandria (Walker, February, 2009). The Houma-Bayou Cane-Thibodaux was recorded to have the lowest rate of unemployment compared to other metro cities in the month of March, 2008 and the lowest unemployment rate was observed in New Orleans-Metairie-Kenner corridor compared to the largest metros as reported by the Federal Bureau of Labor Statistics (New Orleans, Houma Metro Areas Post lowest unemployment rates in U.S., May, 2009). In the city of New Orleans and Houma-Thibodaux, the rate of unemployment was 5.3% and 3.6% respectively (New Orleans, Houma Metro Areas Post lowest unemployment rates in U.S., May, 2009). According to Tim Barfield, executive director of the Louisiana Workforce Commission, the state is in better condition on the employment front compared to other areas. As stated by news report Louisiana has more of non-farm jobs compared to any other state during March 2008 to March 2009. The unemployment rate of nation as estimated in March, 2008 was 9% whereas it showed 5.7% state wise (New Orleans, Houma Metro Areas Post lowest unemployment rates in U.S., May, 2009). Initiative Taken By the Government: Currently, the Louisiana Department of Environmental Quality has chosen 55 applicants to have $43 million which will be distributed to the state to provide encouragement Final approval will be given by the federal government (DEQ Announces Proposed Recipients for Wastewater Projects, June, 2009). The Department of Environment Quality is looking into the matter to guarantee extensive improvements in sewer system so that majority is benefited. Forty-eight projects are about to $46,215 to $1.52 million approximately to invest in conventional sewer system projects (DEQ Announces Proposed Recipients for Wastewater Projects, June, 2009). DEQ Secretary, Harold Leggett said that although there has been an increasing craze for funds still the decisions need to be more justifiable. Wastewater infrastructure up gradation is required within the state and DEQ would be providing funds in 42 parishes with interest rate of 0.95% for a stretch of 20 years by the help of State Revolving Fund program. (DEQ Announces Proposed Recipients for Wastewater Projects, June, 2009). The state has approves $5.3 million for revival of Lakefront Area in Lake Charles to ensure additional interest and investment in the Downtown and Lakefront areas (State Approves $ 5.3 Million Revitalization of Lakefront Area in Lake Charles, Holds Groundbreaking Ceremony, June, 2009). Long Term Community Recovery Program, a $700 million pool of federal CDBG money, will finance the local governments to redevelop and device long-term recovery plans (State Approves $ 5.3 Million Revitalization of Lakefront Area in Lake Charles, Holds Groundbreaking Ceremony, June, 2009). The Louisiana Department of Social Services recently declared that Louisiana residents can pre-assign for Disaster Food Stamps in order to prepare themselves for avoiding disaster. DSS Secretary Kristy Nichols announced that this program welcomes all those who suffered from hurricanes Gustav and Ike in the year 2008. This program provide food assurance from low- to moderate- income households who do not receive regular food stamps and need help for having their basic amenities as they have no earnings and have suffered damages because of disaster (DSS offers pre- application for Disaster Food Stamp, June, 2009). For having outdoor recreational activities, the Louisiana Department of Wildlife and Fisheries (LDWF) and the Office of State Parks (OSP) has facilitated free fishing on June6 and June 7, 2009 to encourage the recreational fishermen who are having the license and are of 16 years and above. The residents and the tourists are also welcomed. Both these organizations are offering these opportunities to those people and families who are not having access to boats in fishing spots. Those recreational fishermen who have the license are encouraged to get along with those individuals who have not had the chance to do fishing (Free Fishing and a Day in the Park opportunities available this weekend, June, 2009). The government has approved $842,695 recently for 2 drainage projects in Vermilion Parish which will certainly help the parish officials to obtain federal Community Development Block Grant funds which will be required for project implementation. The sanctioned projects are composed of $674,156 for setting up of a pumping station in Abbeville and $168,539 is needed for enhancement at the pumping station in Gueydan (State Approves More than $800,000 for Drainage projects in Abbeville, Gueydan, May, 2009) and the finance will be provided by the Long Term Community Recovery Program. Hurricane Rita has caused the accruement of storm water in the drainage area on Franks Alley in Abbeville. It has resulted in flooding of properties and businesses. $674,156 will be consumed for having a topographic survey in the area of Abbeville and a comprehensive study will be undertaken to sketch a pumping station, to recollect pond and drainage pipes and channel the funds properly into the project. $168,539 is allocated in Gueydan to administer a survey of the area, to study every detail, to design systems for the pumping station and to provide recommendations (State Approves More than $800,000 for Drainage projects in Abbeville, Gueydan, May, 2009). As reported by Paul Rainwater, Executive Director of Louisiana Recovery Authority these two towns of Abbeville and Gueydan have suffered immense losses due to flooding from Hurricane Rita. So these said projects will ensure some relief and help out these affected areas to come out of the terrible situation and also will be able to overcome and to reduce the future natural calamities like storms. This project will prove beneficial for protecting the properties and ensuring safety means and public health of the residents in Vermilion Parish. In total, the Louisiana Recovery Authority has funded $7,651,424 to Vermilion Parish for the projects associated with Long Term Community Recovery Program (State Approves More than $800,000 for Drainage projects in Abbeville, Gueydan, May, 2009). Conclusion: Hence we can draw the conclusion that the Louisiana economy has more comparative advantage in context of economic issues say whether unemployment and economic turn down. Although the area coverage is said to be very less compared to other nation states, the economy was not seriously affected by the stagnation and slack period. In the growing years the economy is about to prosper if proper credit is made available to this area. References: 1. Brown, D (n.d.). The handbook of Texas Online, available at: http://www.tshaonline.org/handbook/online/articles/LL/hll30.html (Accessed on June 5, 2009) 2. CIA World Factbook (2009), China, available at: https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html (Accessed on June 5, 2009) 3. “DEQ Announces Proposed Recipients for Wastewater Projects” (June 4, 2009). Louisiana Department of Environment Quality, available at: http://wwwprd.doa.louisiana.gov/LaNews/PublicPages/Dsp_PressRelease_Display.cfm?PressReleaseID=2081&Rec_ID=2 (Accessed on June 5, 2009) 4. “DSS offers pre- application for Disaster Food Stamps” (June 2, 2009). Louisiana Department of Social Sciences, available at: http://wwwprd.doa.louisiana.gov/LaNews/PublicPages/Dsp_PressRelease_Display.cfm?PressReleaseID=2077&Rec_ID=4 (Accessed on June 5, 2009) 5. “Free Fishing and a Day in the Park opportunities available this weekend” (June 4, 2009). Louisiana Department of Wildlife and Fisheries, available at: http://wwwprd.doa.louisiana.gov/LaNews/PublicPages/Dsp_PressRelease_Display.cfm?PressReleaseID=2080&Rec_ID=1 (Accessed on June 6, 2009) 6. Louisiana Economy, (n.d.) available at: http://www.city-data.com/states/Louisiana-Economy.html (Accessed on June 6, 2009) 7. “New Orleans, Houma Metro Areas Post lowest unemployment rates in U.S” (May 01, 2009). Louisiana Workforce Commission (Formerly Louisiana Department of Labor- LDOL), available at: http://wwwprd.doa.louisiana.gov/LaNews/PublicPages/Dsp_PressRelease_Display.cfm?PressReleaseID=2029&Rec_ID=44 (Accessed on June 6, 2009). 8. “State Approves More than $800,000 for Drainage projects in Abbeville, Gueydan” (May 8, 2009). Louisiana Recovery Authority, available at: http://wwwprd.doa.louisiana.gov/LaNews/PublicPages/Dsp_PressRelease_Display.cfm?PressReleaseID=2044&Rec_ID=33 (Accessed on June 6, 2009) 9. “State Approves $ 5.3 Million Revitalization of Lakefront Area in Lake Charles, Holds Groundbreaking Ceremony” (June 3, 2009). Louisiana Recovery Authority, available at: http://wwwprd.doa.louisiana.gov/LaNews/PublicPages/Dsp_PressRelease_Display.cfm?PressReleaseID=2079&Rec_ID=0 (Accessed on June 6, 2009). 10. Walker, B (Feb, 2009). Vernon business owners optimistic about economy, available at: http://www.leesvilledailyleader.com/news/x2127770369/Vernon-business-owners-optimistic-about-economy (Accessed on June 5, 2009) Read More