Steve Wynn created 250,000 jobs in Nevada while Obama has created ZERO. That’s why Steve Wynn refuses to be lectured by Obama on how to create jobs. Steve Wynn wants to invest another $2B into Las Vegas, but refuses to because he has no idea what anti-capitalist, pro-Big Government, redistributive policies Obama will create if and when he is re-elected.
When a Government is unpredictable, businesses can not make calculated decisions on risk and reward for their investments or business decisions on whether to expand, merge, acquire, retain capital, invest capital, hire, fire, pay off debt, acquire debt, pay dividends, not pay dividends, how much dividend to pay, etc… They simply sit tight (or invest in other countries and create jobs in those countries) and do nothing in this country out of fear of the unknown that the Government has created.
If Government suddenly and unpredictably increases personal income taxes (which hurts labor, i.e. consumer spending which is called “revenue” for businesses), corporate taxes, capital gains taxes, or creates a new raft of pro-employee entitlements that businesses must pay for, or creates new restrictive green legislation, or subsidizes a competitor with tax payer money…all of these create costs to businesses and the severity of the cost increase could be minimal up to immediately bankruptable.
It is the not knowing what Big Government’s next move is, or the severity of that move, or how many moves there will be and when, that lock up economic growth and freeze businesses right in their tracks while they hoard cash and cut costs. Remember that if a business miscalculates on any of these costs, they can go out of business, so it is critical that businesses understand what their costs are, and what they will be in the future, in order to make decisions that do not run them out of business.
Steve Wynn is not alone. There are hundreds of thousands of business owners and wealthy investors that think the exact same thing.
You and I do the same thing as businesses. We hoard cash and cut costs during times of uncertainty. When the economy is bad we save more money, pay down debt, don’t buy the new car we were considering, remember to turn off the lights more often, turn up the temp on the A/C, use less water, buy more off-brand products from the grocery store, buy cheaper gas, drive fewer miles, take less vacations, visit Starbucks less often, drive instead of fly, take less risks in our careers. People…act exactly the same way as businesses when there is uncertainty in the economy.
We are controlled by an anti-free market Government that is hell-bent on the redistribution of wealth; of transforming a capitalist free-market society into one in which the purpose of business is solely to provide the means for the Government to engineer a new society and country where its citizens rely more on Government subsistence than themselves and their own hard work.
Some large Corporations have seen the writing on the wall, that this anti-business, pro-Big Government tyranny is here to stay, so they work with the politicians to support legislation that benefits themselves and the politicians but destroys the free market, which destroys their competition…a nice collateral benefit. It also raises prices for you because without competition there is no reason to lower prices. In return for their political loyalty, these companies will continue to exist, protected by the politicians, and any other businesses trying to be born, or survive, without Government’s blessing will eventually be driven out of business or consolidated into the larger politically aligned Corporations. An example of this would be the pharmaceutical companies supporting Obamacare.
In exchange for their support, they are guaranteed business via Government legislation. It is a slow process but it is effective in corporatizing the country where large corporations exist solely to provide income for the politicians to redistribute as they see fit. Those receiving this redistribution will continue to support these politicians. It is beautiful in its simplicity, and a very efficient way of converting a Republic to Corporate Fascism with the majority of citizens never becoming aware of this change in their own form of Government.
If you have not heard of corporate fascism, I urge you to click the link because you are no longer a citizen of a Republic, or a Democracy, you are a citizen of a Corporate Fascist State. Don’t believe me? Click the link.
I would like to be the first to welcome you to the new America.
There is no law that forces you and I to spend our money. Likewise, there is no law that forces the wealthy to spend or invest their money in creating new businesses, expanding existing ones or investing in other people’s businesses…they will simply keep all of their money, live a beautiful life (and probably move to a more business friendly country), and die with it, or hand it down to the next generation to do the same.
The Government can only take income, and the wealthy only produce income when they invest their wealth in income-producing vehicles such as businesses. These same investments are what drive job creation. So Steve Wynn can spend millions on himself living a beautiful life, or invest millions on creating businesses that create jobs (and double his million dollar investment in the process) but as long as pro-Big Government politicians are in charge of things, picking and choosing which companies get access to the spoils, Wynn will simply spend his millions on himself, and not invest a penny (at least not in America).
Regardless of whether our politicians or our President are Republican or Democrat, as long as you continue to vote for politicians that will continue to create uncertainty in the market by moving this country away from free-market capitalism where competition prevents the unholy alliance between government and corporations thus promoting Corporate Fascism, you can continue to expect the wealthy to keep their money to themselves and for you to keep postponing your vacation plans.