Editorial: Our stake in the global economy

FOR those who may have been slumbering, President Clinton sent a rousing wake-up call Monday, saying that the spreading global economic crisis is the "biggest financial challenge facing the world in half a century."

Wall Street has undergone some wild gyrations in the past few weeks as the Dow Jones industrial average has plunged and then spiked upward. Even after the president voiced his concerns Monday about the U.S. economy, the Dow finished the day up about 150 points. But this shouldn't obscure the fact that the economies around the globe, especially of Asian nations and Russia, are hurting.

Still, if the U.S. economy is healthy, why should we worry what happens halfway around the world? As Clinton noted, the success of the U.S. economy is linked directly to the global economy. For instance, since Clinton took office, 30 percent of U.S. economic growth is due to overseas trade. "These people are our customers," Clinton said.

Although the president's remarks focused on trade, they should also resonate with the tourist-based economy of Las Vegas. The deteriorating economies in Asia are believed to have kept international gamblers home. And our local economy is at a critical juncture, especially because 20,000 new hotel rooms are set to open in the next two years. International visitors will be a key factor in whether these rooms are filled, helping to sustain our economy.

Clinton has diagnosed the problem. Part of his prescription is for Federal Reserve Board Chairman Alan Greenspan and Treasury Secretary Robert Rubin to meet with their counterparts in the economically troubled nations in the next 30 days to deal with the crisis.

In addition, the president correctly urged Congress to approve the $18 billion he is seeking to replenish the International Monetary Fund, which has set up more than $100 billion in bailout packages for Asian nations and Russia.

The bottom line is that the United States cannot be a shrinking violet. It should continue its leadership role in the global economy, helping to lift other nations out of their crises. To do anything less would threaten our nation's economic vitality.

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