The Up and Downfall of New Mexico Business: Post Covid-19

The Up and Downfall of New Mexico Business: Post Covid-19
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The Up and Downfall of New Mexico Business: Post Covid-19
Businesses worldwide have faced enormous obstacles due to the COVID-19 outbreak, and New Mexico is no different. High unemployment rates, a drop-in oil and gas revenue, and a drop in tourism have been problems for the state. Despite the difficulties brought on by the COVID-19 epidemic, businesses in New Mexico can prosper by implementing creative tactics, diversifying their sources of income, and utilizing technology to adjust to the new normal. The peaks and valleys of New Mexico enterprises in the years following COVID-19 will be covered in this essay.
Counter Argument
Before the epidemic, New Mexico companies over-relied on fluctuating oil and gas income. The epidemic has worsened the situation, reducing this income. High unemployment and small company closures have resulted from the outbreak (Afrin et al., 2022). Tourism is down due to indoor eating and event limitations. New Mexico's overreliance on oil and gas earnings and the pandemic are causing business economic problems. Oil prices and market dynamics have made New Mexico's economy unpredictable (Afrin et al., 2022). The 2014 oil price crash and COVID-19 outbreak put the state vulnerable to economic shocks.
COVID-19 has hurt New Mexico's economy as high unemployment and economic failures plague the state. Tourism has dropped owing to virus worries, hurting the hospitality business. Many struggling small enterprises have closed forever (Afrin et al., 2022). New Mexico companies have always had economic issues, but the epidemic has worsened. Due to the state's overreliance on oil and gas earnings, businesses need help diversifying and establishing new income streams. New Mexico officials must examine long-term economic growth measures, including investing in technology, diversifying revenue streams, and cooperating with other industries to meet these difficulties (Afrin et al., 2022). They can assist companies to survive the economic slump and position the state for prosperity by doing so.
Supporting Evidence for Counter Argument
In March 2021, New Mexico had 8.2% unemployment, more significant than the national average of 6%. The pandemic has impacted hospitality, vital to the state's economy (Huang et al., 2020). According to the New Mexico Tourism Department, tourism earnings dropped 43% in 2020. New Mexico's economy relies on restaurants, motels, and entertainment. The New Mexico Tourism Department says the business earns billions of dollars and employs thousands. However, the epidemic has forced many hotel firms to close or limit capacity, resulting in substantial income losses (Huang et al., 2020). In 2020, New Mexico's tourism earnings fell 43%. This income drop has also hurt tourism-dependent firms in the state's economy.
Refuting the Counter Argument
New Mexico's economy has historically relied on oil and gas, although the state has been actively diversifying its economy recently. New Mexico attracts entertainment, technology, and renewable energy enterprises (Wang & Zhang, 2021). These measures have diversified the state's economy and lessened its oil and gas dependence. The COVID-19 epidemic has hurt companies globally. Therefore, blaming New Mexico's economic problems on oil and gas overreliance is unfair (Wang & Zhang, 2021). The epidemic has generated considerable unemployment and the closure of numerous small enterprises across industries. Thus, New Mexico firms confront complicated economic difficulties that require a holistic strategy.
While some companies have struggled to adjust to the epidemic, many have turned to internet sales, delivery services, and other methods to keep making money. Federal subsidies have helped small firms survive in the state (Wang & Zhang, 2021). These steps will help companies temporarily but will not fix the state's economic problems. New Mexico officials have also considered long-term economic growth ideas. The state has invested in technology, diversified revenue streams, and collaborated with other enterprises to foster entrepreneurship and innovation (Wang & Zhang, 2021). New Mexico has invested extensively in renewable energy, creating employment and cash. These activities will help the state build a sustainable and resilient economy.
Evidence for Argument
New Mexico has taken steps to diversify its economy, including attracting new businesses. Breaking Bad and Better Call Saul was filmed in New Mexico, which boasts a flourishing film industry (Saha, 2020). The New Mexico Film Office said the film industry generated $525 million in economic activity in 2019, supporting 14,400 jobs and 605 businesses. This action has diversified the state's economy and reduced its oil and gas dependence.
The Arrowhead Center at New Mexico State University and the Innovation Academy at the University of New Mexico are technology incubators besides the film industry (Saha, 2020). These incubators assist entrepreneurs and startups in launching new technology and enterprises. These activities created state jobs and money. New Mexico's renewable energy investments have created jobs and revenue while lowering its fossil fuel use. Wind and solar energy generated over 20% of New Mexico's electricity in 2019, according to the Energy, Minerals, and Natural Resources Department (Saha, 2020). These investments have provided jobs installing, maintaining, and running wind and solar projects.
The state has also worked with enterprises to foster entrepreneurship and innovation. The New Mexico Economic Development Department and the nonprofit Innovate and Educate founded Skill Up New Mexico (Saha, 2020). This program trains individuals in high-demand industries like healthcare, manufacturing, and technology. This program trains workers to assist state business growth. New Mexico has been actively diversifying its economy and reducing its dependence on oil and gas earnings. The COVID-19 pandemic has hurt New Mexico businesses, but the state's over-reliance on oil and gas earnings is not the only cause (Saha, 2020). The state's complicated economic issues require a holistic response.
My Arguments
The Role of New Mexico's Medical Industry in the State's Economic Recovery
Many New Mexico hospitals and healthcare professionals are combating the pandemic, boosting the economy. Medical goods and services are in demand, creating jobs and economic growth. According to the Bureau of Labour Statistics (BLS), the New Mexico healthcare business created 2,800 jobs in March 2021. According to the BLS, the New Mexico healthcare business added 2.1% of jobs from 2019 to 2020 (ASPE, 2022). New Mexico's medical community fought the epidemic. The New Mexico Hospital Association got a $12.5 million federal grant for healthcare response.
The epidemic has boosted the state's healthcare business (ASPE, 2022). This need for medical services and supplies has produced job possibilities in the healthcare business, a significant state employer (Caballero-Morales, 2021). New Mexico is providing critical pandemic care. Healthcare personnel are heroes for fighting the epidemic and creating jobs in the state. Local medical supply firms have benefited from demand.
The Increasing Demand for Outdoor Recreation Activities
New Mexico's demand for outdoor leisure activities has grown, resulting in employment development and economic expansion in the travel and tourism sector. Due to the epidemic, many individuals seek safe outdoor activities during their leisure time. Due to its rich natural beauty, New Mexico has gained popularity for outdoor leisure activities, including hiking, bicycling, and camping (Caballero-Morales, 202...