III.

Economic Activities

Nevada had the fastest-growing population of any state in the 1990s and early 2000s, and one of the fastest-growing economies. Boom and bust has been a typical economic cycle for Nevada, although the boom in the 1990s was without precedent in the state.

Mining has been the traditional cornerstone of the Nevada economy, but the economy became more diversified in the late 20th century. The initial mining boom began with the discovery of the great silver and gold deposits of the Comstock Lode in 1859. Other discoveries led to the establishment of small mining communities throughout the state. Agriculture, especially cattle ranching and other livestock raising, developed as the second most important aspect of the economy. The legalization of gambling in 1931 led to growth of the tourism and entertainment industries, which today dominate the state’s economy. A rapidly growing population, in part due to the increased job opportunities in the tourism-driven service sector, has in turn made the construction industry an important employer. The federal government also employs many people in Nevada and contributes to the state’s economy. The most important federal facilities in the state are Nellis Air Force Base and the U.S. Department of Energy’s Nevada Test Site.

A.

Agriculture

Raising livestock, especially cattle and sheep, is the most important agricultural activity in Nevada. Because of Nevada’s arid conditions and sparse vegetation, the animals need a great deal of land on which to graze. Ranches in Nevada are correspondingly large. Livestock also graze on government-owned land. Most of the cattle ranches are in northern Nevada. Dairy farming is important in the south and west of the state.

Most of Nevada’s crops are grown in valleys, and most of the cropland requires irrigation. The most important crops are alfalfa, hay, and other winter fodder for livestock, including wheat, barley, and oats. Farmers also grow potatoes and onions. Fruit and vegetable farms are found chiefly in the southern part of the state.

Most of the ranching is done in the less arid northeastern parts of the state. Almost all the livestock graze on public lands at least part of the year.

B.

Mining

Mining was long the most important industry, and the state was world-famous for its rich gold and silver output. During the early 2000s Nevada ranked first among the states in the production of gold and was surpassed only by Alaska in the production of silver. Nevada also led the nation in the production of the mineral barite and the metal lithium. It ranked second among the states, behind Arizona, in the value of its nonfuel mineral production.

In 1859 the Comstock Lode was discovered at a site near Virginia City. This vein of ore, which yielded both gold and silver, gave its name to the booming Comstock Era of the next 20 years. The mineral wealth of this area was vast enough to lead to Nevada’s admission to the Union as a state in 1864, despite its small population. So sizable was the Comstock boom that the Lake Tahoe basin was virtually stripped of trees, which went to make mine support timbers, charcoal, and houses. Production from the Comstock Lode declined in the latter part of the l9th century, because of falling silver prices and the exhaustion of the finest-grade ore. But deposits of silver, lead, and zinc had been found elsewhere by that time, and discoveries continued after 1900.

In the late 1970s, deposits of disseminated, microscopically fine gold were discovered in a geological formation known as the Carlin Trend, near Elko. The Carlin Trend is the largest source of gold found in the United States since California’s Gold Rush of the late 1840s. New separation techniques and the rising price of gold made mining these deposits economically worthwhile. Six Nevada counties are involved in the production of gold from these deposits. For most of the 20th century copper was the most important mineral in Nevada’s economy, accounting for as much as one-third of total national output. However, falling copper prices forced several large mines to close in the late 1970s.

Other minerals extracted in Nevada include gypsum, magnesite, mercury, molybdenum, and tungsten. Nevada also produces clays, lime, sand and gravel, salt, stone, and semiprecious gemstones.

C.

Manufacturing

Although manufacturing employment grew significantly during the 1990s, the sector still provides a relatively small portion of Nevada’s gross product. Manufacturing is heavily concentrated around the Las Vegas area and in the Reno-Sparks area. The most important manufacturing industries are printing and publishing, the production of cement and other construction materials, food processing, the production of plastic items, and the production of computers and electronic goods.

D.

Tourist Industry

Tourism is the state’s most important economic activity. Millions of tourists visit Nevada each year, lured by its beautiful scenery, liberal gambling laws, and exciting nightlife. The state derives a large part of its revenue from taxes on gambling establishments and amusements. Luxury hotels, glittering gambling casinos, and nightclubs with big-name entertainers are centered in the resort areas of Las Vegas, Reno, and Lake Tahoe. These resorts offer a number of attractions for children, as well. The Lake Tahoe region also has a number of popular ski resorts.

E.

Transportation and Trade

Two historic routes of travel across Nevada are still followed by modern interstate highways and railroads. One of these routes was the old California Trail from Salt Lake City to San Francisco, which extended down the Humboldt River and up the Truckee River into the Sierra Nevada. The second route, the Mormon Trail, extended from Salt Lake City to Los Angeles, crossing southern Nevada through what is now Las Vegas. U.S. Highway 50, which follows the route of the Pony Express of the 1860s, has been called “The Loneliest Road in America” because of its passage through some of the state’s most unpopulated landscapes.

Reno is a trade center for northwestern Nevada and a part of northeastern California. Las Vegas is the major southern center. Smaller centers in the state are Ely and Elko. The commerce of all Nevada, however, is closely tied in with the major population and trade centers of California.