Steve Wynn's Cautionary Tale
A few months ago, at the end of May, real estate/casino billionaire Steve Wynn appeared on CNBC lambasting the anti-business policies coming out of Washington. Calling congressmen "hypocritical SOBs," he said,
Is there a business man or a media person in America that...isn't frightened by the next crazy idea coming from Washington? The financial institution, the cars, the businessmen, the taxes, the healthcare, everything is cuckoo and god knows what comes next.
This clip has recently gone viral on the net--it's been making the chain e-mail rounds--and I think it's because Wynn articulated in May what many people are saying now, that "the uncertainty in the business climate in America is frightening, frightening to everybody and it's delaying recovery." Friday's job numbers and the current debate about raising taxes has heightened that uncertainty.
Back in the spring, Wynn found his own way to deal with the unpredictable business climate in this country. He announced he would split his company's headquarters between Las Vegas and Macau, China. "The opportunities I see are far superior abroad than in America." He explained,
Macau has been steady. The shocking, unexpected government is the one in Washington. That's where we get surprises every day. That's where taxes are changed every five minutes. That's where you don't know what to expect tomorrow. To compare political stability and predictability in China to Washington is like comparing Mt. Everest to an ant hill. Makow and China is stable. Washington is not...So when you ask me about predictability and uncertaintily politically in China compared to Washington, I take China. Washington in unpredictable these days.
Days ago, his decision was vindicated when his company posted its quarterly profits. Despite the recession, Wynn Resorts' profits doubled in large part due to the revenue coming in from Macau.
Put this one down as a cautionary tale.
Wynn’s story is compelling because it appeals to the bottom line. He’s following the money. And the jobs are following him—leaving this country for China. He’s looking for common sense governance—not abstract politicalese, nor patriotic boilerplate. His message, spoken in words all can understand, is exactly what the GOP and the tea party movement needs right now.
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Re: Steve Wynn's Cautionary Tale
I remember seeing this clip, Emily, and practically falling out of my chair. Which was, I have to admit, at the poolside bar at the Wynn Hotel in Las Vegas, which is a fantastic, over-the-top place and worth a special trip -- great restaurants, terrific service, and a pervading sense of fun.
But the idea that a showman and impressario and gutsy entrepreneur like Wynn would feel more confident investing in China -- well, that's the canary in the coal mine right there.
Jul '10
Re: Steve Wynn's Cautionary Tale
An absolutely excellent rant.
Terrible to think business can be better in China of all places. China is in the process of buying up mineral properties throughout Northern Canada, by the way.
Oh well.
May '10
Re: Steve Wynn's Cautionary Tale
And this morning in the WSJ, Why I'm Not Hiring.
May '10
Re: Steve Wynn's Cautionary Tale
If things continue as they are (which I do not believe they will) there are a lot of businesses that will move to more freindly environments. Investment will as well. My portfolio has shifted from around 20% International to around 70+%. I will come back when I feel that sanity and predictability has returned.