(Please note, some of the images in this video are disturbing) The gruesome reporting and the horrific deaths of so many guests, caused genuine concern to many customers in terms of personal safety when visiting Las Vegas. The international headlines and accompanying imagery, reached every home in the country.Īt the time of the fire, The MGM Grand was the largest and newest resort on the Strip. A second fire at the Hilton was to follow in short order, although not as deadly, led to several fatalities.

The deadly nature of the fire was compounded by the light regulatory environment that had evolved in Nevada, where fire sprinklers were not essential in many densely populated areas. On November 21st 1980, an electrical fire at the MGM Grand ripped through the property, leading to the death of 85 guests and leave an indelible mark on the city’s history. In southern Nevada, the decade started disastrously. On appearance, this small portfolio of properties had relegated the mighty Las Vegas to a desert relic. Between 1980-1989 gaming revenues had grown 437% totaling $18.3bn. The miracle of Atlantic City was evident from zero gaming revenue in 1977, to $325m in 1979, $640m in 1980, $1.1bn in 1981, $1.5b in 1982, close to $2bn in 1985, gaming revenues were just shy of $3bn by the end of the decade. In the coming years, more were to follow. The Brighton (renamed The Sands from 1981), Harrah’s and Steve Wynn’s Golden Nugget opened in 1980. It was shortly followed by The Boardwalk Regency, (renamed Caesars in 1983) and Bally’s Park Place in 1979. On the 26th May 1978, in only the second state in the USA to allow legal casinos, Resorts Casino Hotel opened in Atlantic City. The unemployment rate did not fall below 6% until September 1987, well after the technical end of the recession. Over the next few years, the jobless rate slowly receded, falling to 8.3% by the end of 1983 and to 7.2% by the time of the 1984 “Morning in America” Presidential election. This tightening of monetary policy was compounded by the geo-political crisis caused by the Iranian Revolution and Iran-Iraq war, and subsequent reduction in oil supply, led to inflation peaking at 20.5% With inflation at 11.1% in 1980, The Federal Reserve raised interest rates to slow money supply, which in turn caused a rise in unemployment and the economy to slow. The short recession and recovery in January to June 1980, was followed by a sustained recession from July 1981 to November 1982. The National Bureau for Economic Research cites the “double-dip” as the harshest of the late 20th Century. There were two recessions in the USA in the early 80s, colloquially known as “The Double Dip” Recession.

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