In 2008, Raley's offers bacon at $2.69 per pound.

Eric Sturgess, Lake Tahoe Community College economics instructor, said prices have increased steadily since the 1950s.

"The market tends to have a life of its own," Sturgess said.

 

Six pounds of navel oranges sell for $1 in 1968.

Inflation is fueled by supply and demand, he said. It can be seen all over the community.

The days of 5-cent pints at the casinos are over, and the living expenses have increased, especially at Lake Tahoe.

 

Ten pounds of navel oranges sell for $10 in 2008.

Housing is expensive in the Lake Tahoe Basin because of the lack of supply. Buying a home isn't cheap, especially when there are few options, Sturgess said.

Government intervention to protect the lake has created this dilemma. The housing growth was inhibited by agencies such as the Tahoe Regional Planning Agency, Sturgess said.

"Prices become too high, and some people aren't able to buy houses," he said.

This also applies to businesses. Balancing the environment along with economic growth always is tricky. Sturgess said intervention to control this tends to inhibit business, since conservation and consumers don't go hand-in-hand.

For example, box stores are not allowed into the area because of size regulations and so forth. Many people go off the hill to purchase the goods they are looking for, he said.

The government intervention debate continues when balancing the environment with the success of local business, especially at the South Shore.

All political sides are searching for a middle ground, Sturgess said.



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