Wynn: Obama is ‘greatest wet blanket to business’ and jobs

Why aren’t businesses expanding and hiring? Steve Wynn, the casino and resorts developer, said in an earnings conference call for Wynn Resorts on Monday that his company could hire 10,000 more people — leading to another 20,000 jobs indirectly.

So why isn’t he doing it? Because, he said, the Obama administration is “the greatest wet blanket to business, and progress and job creation in my lifetime.”

He didn’t stop there. From the conference-call transcript posted at Seeking Alpha (h/t: Real Clear Politics):

And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems — that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration. And it makes you slow down and not invest your money. Everybody complains about how much money is on the side in America. You bet. And until we change the tempo and the conversation from Washington, it’s not going to change. And those of us who have business opportunities and the capital to do it are going to sit in fear of the President. And a lot of people don’t want to say that. They’ll say, “Oh God, don’t be attacking Obama.” Well, this is Obama’s deal, and it’s Obama that’s responsible for this fear in America. The guy keeps making speeches about redistribution, and maybe we ought to do something to businesses that don’t invest or holding too much money. We haven’t heard that kind of talk except from pure socialists. Everybody’s afraid of the government, and there’s no need to soft peddling it, it’s the truth. It is the truth. And that’s true of Democratic businessman and Republican businessman, and I am a Democratic businessman and I support Harry Reid. I support Democrats and Republicans. And I’m telling you that the business community in this company is frightened to death of the weird political philosophy of the President of the United States. And until he’s gone, everybody’s going to be sitting on their thumbs.

For good measure, he knocked the prevalent rhetoric about blaming China — and U.S. companies that invest outside the United States:

It’s the double whammy. American companies that have ventured abroad to broaden their markets are bringing money, have reinvested much of that in America. And so the rhetoric about offshore capital, there’d be a lot more of it brought back here if the government did intelligent and encouraging things to bring capital back. But this is a very business, job creating, unfriendly administration, and that’s the plain truth of it.

Expect to see a number of snippets from those comments in a GOP campaign ad between now and November 2012.

– By Kyle Wingfield

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105 comments Add your comment

stranger in a strange land

July 19th, 2011
8:17 am

For all the President, his advisors, and a significant percentage of the Demomcratic party will even begin to comprehend this – Wynn might just as well have written this message in Klingon. (Although on second thought, maybe they’d understand that better – English sure ain’t working).

Rightwing Troll

July 19th, 2011
8:32 am

Any examples of presidential policy that seems to be bridling job creation? Specific examples?

You start our with the contention that American companies are sitting on thier cash, end up with the conclusion that American companies are making money overseas and reinvesting it all in America…

So are they sitting on thier cash scared of Obama, or are they making money overseas and reinvesting it here in America? Sitting on cash, or reinvesting it? Which load of tripe has more truthiness???

Tyler Durden

July 19th, 2011
8:37 am

Who cares what one casino owner thinks? It’s pretty obvious this guy has an axe to grind and therefore is probably not the most objective source of information — anecdotal or otherwise. No matter how you try and prop him up, Kyle, anyone with a modicum on intelligence can easily see the lack of substance and recognize more meaningless crap. Unless you belong to the Tea Party, and then this is 100% empirical evidence that America is totally Socialist, going to Hell in a handbasket and the only solution is… Oh wait, that’s right. Tea Partiers don’t offer solutions. They only whine.

If this is the most relevant evidence the GOP can muster up, no wonder they look like Keystone Kops in the primary. Can’t wait til 2012 :-)

Have a nice day!!!!!!

Gordon

July 19th, 2011
8:38 am

Who should we believe? Steve Wynn the accomplished entrepeneur or Rightwing Troll the anonymous blogger? Hmmmm…..

Stevie Ray

July 19th, 2011
8:44 am

Refreshing to hear a successful leading business executive (finally) come out publicly against the chosen one. Many of our elected officials made too many promises to the half of voters who take instead of produce for our tax coffers. That seems to be the way of beltway success….saying anything to get you elected. In this vein, Obama is not unlike the majority of both parties who will do anything to get on the beltway gravy train. Taking polical sides inflames the mess.

Righwing, good questions most of which can be answered by reading SEC filings for most of the Fortune 500. You will see a trend consistent with Wynn’s comments.

Jedsil

July 19th, 2011
8:49 am

As liberals like to say, when it comes to Obama’s impact on the American economy, the debate is over. All Steve Wynn did is say what everyone thinks, i.e. Obama has mismanaged the economy. While he did not cause the financial crisis, he can take full credit for having prevented a meaningful recovery. ObamaCare, Dodd-Frank, thousands of pages of government regulations, many of which have not yet been written by the members of the Obama administration charged with that task. No business person with any sense is going to borrow money to expand and increase hires when the political landscape is not merely inhospitable to business, but agressively hostile. Obama is more than a wet blanket on the economy. He’s a tsunami of historically epic proportions.

JF McNamara

July 19th, 2011
8:52 am

I believe the stock market, also known as the free market. As far as I can tell, things look fine. The market isn’t performing poorly, and companies are blowing away their earnings and even beating on revenue. The only problem we have is Euro default.

This is just political spin because he probably didn’t get some subsidy he wanted.

Jeff Earl

July 19th, 2011
8:54 am

I agree, as a very small business owner, I am won’t hire. Not bcz I am taxes are uncertain. Because I am CERTAIN that the red tape will cause me so munch headache, time and risk (of doing it wrong-agencies rule conflict with each other), I will not hire another person, not even an intern.
Case in point, the DOL just fined me $12 after a 2-day audit because I paid (out of goodness of my heart) an a free summer intern $500 because I did not put him on payroll…. I have dozen more stories like this from me and other SBO.

GW

July 19th, 2011
8:56 am

If only people were not so scared, they would gamble more and this guy could hire so many more to wait on the gamblers and it is all Obama’s fault! You got yourself a real doozey there, Kyle. By the way, did you notice that his profits doubled from a year ago even with Obama, the destroyer of universes, at the helm. Now get busy working on that correlation between more tax cuts and elimination of medicare and medicaid and social security and our nation’s return to economic prosperity. And show your math.

ByteMe

July 19th, 2011
8:57 am

And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right.

And yet… he doesn’t give any examples. Surprised? I’m not.

Just a rant from another oligarch who feels he isn’t getting his “fair” share.

JF McNamara

July 19th, 2011
8:58 am

Jeff Earl,

I know it was out of the “goodness of your heart”, but from the way its framed it looks like tax evasion. If I didn’t need to pay taxes on it, I’d pay everyone out of the ” goodness of my heart”.

ByteMe

July 19th, 2011
8:58 am

Because I am CERTAIN that the red tape will cause me so munch headache, time and risk (of doing it wrong-agencies rule conflict with each other), I will not hire another person, not even an intern.

You know that all that red tape is actually coming from the state level with those beloved Republicans at the helm, right?

Lil' Barry Bailout

July 19th, 2011
9:02 am

Watch for the Idiot Messiah to grudgingly put aside his anti-American, Marxist principles and take his boot off the American productive class’s neck just long enough to get some growth just prior to the election.

real john

July 19th, 2011
9:05 am

While I would agree that one successful businesman’s view doesn’t respresent all, it is interesting. More and more seem to be speaking out.

The bottom line is when you have a president attacking big oil, healthcare, CEO’s, banks, heck, even novelists now (I don’t know where or why he made that comment), why would they hire. By the way, these industries employ millions of Americans and billions and billions to our economy. As long as he keeps talking about “paying their fair share” business are going to be scared. I can’t blame them, I wouldn’t either.

Carlosgvv

July 19th, 2011
9:06 am

Kyle, it’s hard to believe you would actually fall for that. Buisness is not hiring because they can and do pile more and more work on their existing employees, knowing they won’t dare quit, and put all the additional profits in their pockets.

Stevie Ray

July 19th, 2011
9:10 am

Byte Me’s (love that moniker) comments are correct when it comes to licensing, unemployment, state tax collectors, and corrupt politicians looking for vig. One the other hand and on the federal level you have the IRS, EPA, Social Security, Medicare, Government-backed unions, SEC, as well as regulations governing hiring, termination, and regulations surrounding healthcare benefits and pensions/401K’s. I suggest your premise is incorrect. Respectfully of course.

Lil' Barry Bailout

July 19th, 2011
9:10 am

There’s a reason our lexicon includes the separate and distinct words “business” and “charity”, libtards.

Gordon

July 19th, 2011
9:11 am

2 questions:

1) Where are the comments of the business people who support Obama’s policies?
2) Why would business people lie about what they think is wrong? If they were happy with Obama’s policies, why wouldn’t they say so?

Citizen of the World

July 19th, 2011
9:11 am

Funny, I haven’t heard Obama use the word “redistribution” once, not since he told Joe the Plumber that wanted to increase taxes over those making $250,000 a year to spread the wealth.

But aside from that, Republicans complain that Obama is not doing anything about jobs, while at the same time blocking ever single move he tries to make that might to something about jobs!

So we had Bush for eight years not doing anything about jobs except turning a blind eye to unethical and unsustainable banking and lending practices till the whole house of cards is foreclosed on. Then when Obama is elected and charged with trying to clean up the mess, the Republicans are blocking his way, then blaming him for the whole disaster.

And these businessmen who claim to be frightened to make a move because of regulation and taxation — let them see how far they would get without it. They don’t seem to want to admit that regulation, while it might constrain them, also protects them. And taxation, while it stings, well, that’s the price of civilization, to quote Oliver Wendell Holmes.

DBCOOPER

July 19th, 2011
9:12 am

Four More Years !! Four More Years !!! Four More Years !!!!

How ridiculous and simply crazy does that sound?

I don’t care if your a Democrat / Lib or whatever. To deny that this administration is an absolute failure and an American job killer, is insanity.

retired early

July 19th, 2011
9:16 am

This is a blatant attempt to attack Obama with pure BS. How can you give this man instant credibility, simply because he runs a “business”.
What “new regulations”….the healthcare bill is all he can fault, because he does not want to provide healthcare for his employees….And “he would hire 10,000 right now….”. that’s the biggest lie i have ever heard. What kind of businessman “sits” on an opportunity to add to his company profits. But you Kyle are gullible enough to believe “anyone”…as long as try support your point of view…..please…..find some real people to quote.

rightwing troll

July 19th, 2011
9:18 am

Owned a small business for the last 9 years. Self insured for 5 of those. Not a SINGLE Federal or State regulation or policy keeps me from hiring or expanding. Nope, it’s the worthlessness of the pool of prospective employees that made me decide I was better off staying small. I pay good, nay great rates for people yet they can’t seem to get off thier cellphones, stop texting, or give a $hit about the end product and customer. That’s when they could actually make it to work.

As for the insurance, I was gouged yearly as BCBS jacked my rates 25%-35% yearly for no discernible reason from the years of 2003 to 2008. I was able to gain access to employer provided insurance when I remarried and since 2008 rates have gone up and benefits down.

Jimmy62

July 19th, 2011
9:19 am

Interesting how the people scoffing at the kinds of things Wynn is saying aren’t business owners. How many actual business owners need to say these things before you believe? Wynn has a lot more experience running a business than any of you, so I will take his analysis on how Obama is stifling business and investment before yours, since he’s the one actually doing the business.

rightwing troll

July 19th, 2011
9:22 am

Bout what I expected.

Not a single solitary example can be put forth of ALL the onerous and job-styming regulations Obama has enacted. Not one. At least when I posed that question over at Bookman’s blog I got one…

The fact that parents can carry kids on thier insurance until age of 26 (that’s 2 years longer than previously) appears to be the whole reason American companies are sitting on thier cash, except for the ones operating overseas who apparently are reinvesting all thier cash in America…

Dr. Pangloss

July 19th, 2011
9:23 am

The corporations have been posting record profits. I wish somebody would be my wet blanket like that.

This is just another rightwinger seeing socialists under his bed like a scared old lady.

rightwing troll

July 19th, 2011
9:24 am

“I don’t care if your a Democrat / Lib or whatever. To deny that this administration is an absolute failure and an American job killer, is insanity.”

Any facts to support that? Do share.

Dr. Pangloss

July 19th, 2011
9:27 am

Is Kyle reduced to referencing somebody in the casino business for words of wisdom? Somebody who lives off other people’s weakness and misery? Why stop here? Get a pimp or a drug dealer to analyze the economy.

ByteMe

July 19th, 2011
9:27 am

Kyle would rather give his readers a Steve Wynn rant about the opposition than give a real good look at to why the economy is slow to recover this time around:

http://www.ritholtz.com/blog/2011/07/is-a-deleveraging-consumer-spending-less/

~70% of the economy is consumer spending. Slow that down and you slow down the economy. Giving more money to the oligarchs won’t change that a bit, since they will be happy to invest that in an economy that’s growing quickly (like Brazil) and they have the ability to do that without too much trouble.

Wynn’s company’s profits grew and yet he still refuses to hire because he can not because of any external forces.

And, Jimmy, your strawman argument about who owns businesses is false. I’m a long-time business owner and Fed policy has no effect on my hiring and firing of people… just good business sense dictates how I decide to run my business.

Jefferson

July 19th, 2011
9:30 am

The Casinos don’t have the business to hire, he’s blowing smoke.

ByteMe

July 19th, 2011
9:34 am

And Stevie says One the other hand and on the federal level you have the IRS, EPA, Social Security, Medicare, Government-backed unions, SEC, as well as regulations governing hiring, termination, and regulations surrounding healthcare benefits and pensions/401K’s. I suggest your premise is incorrect.

The red tape the original poster mentioned was entirely state-based. He didn’t mention any of those other considerations and most small businesses aren’t affected (here in Georgia) by unions or the SEC. As for the others, if you check, the state regulates healthcare benefits in most situations as well as regulations around hiring and firing (check the state law site to see that). Pensions are something that’s Federal, just because there’s a lot of tax code (as well as cross-state invesetments) involved in that, but — again — that’s not why companies are not hiring while holding record profits in their bank accounts. They aren’t hiring because they can grow profits while keeping their headcount down and if you’re a business owner, that makes a lot of business sense.

Citizen of the World

July 19th, 2011
9:36 am

This guy Wynn, maybe he should consider the possibility that when *housing* turns out to be a gamble, people wake up to the fact that the blackjack table sure isn’t the place to put their money.

JustPeachy

July 19th, 2011
9:46 am

It’s clear to me many of you commenters aren’t aware of who Steve Wynn really is. He’s not just a, “casino owner.” He is a successful businessman who has dabbled in much of the hospitatly industry; he only started with Casino’s but owns hotels, spas, restaurants, the list goes on. Steve Wynn essentially imagined and created Las Vegas, he was president & CEO of MGM Grand (the brand that owns half of Vegas) for years before resigning to set out and create his own fortune empire. His luzury casinos AND hotels are all over the world not just in casino towns. I’ve never agreed with him politically however when it comes to sound business advice he’s brilliant.

Nice try all of you who try to belittle his accomplishments because after all the liberal thinking way is that nobody is aloud to work their butt off and become rich, oh no we must share our wealth…

JustPeachy

July 19th, 2011
9:50 am

I should also add of all of my stocks WYNN has continued to grow not dive.

DwayneL

July 19th, 2011
9:53 am

Wynn is absolutely correct and many investors and CEO’s feel the same way I’m sure. Watch how fast the economy picks up and starts to grow when obama is ousted in 2012!

ByteMe

July 19th, 2011
9:54 am

I should also add of all of my stocks WYNN has continued to grow not dive.

Do you realize that you’re hurting Wynn’s arguments when you post facts like that?

Dirty Dawg

July 19th, 2011
9:55 am

Steve Wynn is merely following the Republican strategy of blaming Obama for everything up to and including the weather in order to give one of the Repug ‘candidates’ a chance in next year’s election.

Fact is, he’s right about Obama being the ’cause’ of the failure of the economy to return – hell, he even said it himself – the ‘right’ is so damned hate-filled and prejudiced toward Obama, they’re willing to take an entire country down in order to make sure people are hurting…Steve Wynn’s not hurting mind you, just all those folks he claims he could hire to serve all those people that would come back to LV if the economy didn’t suck…see? Face it folks, the reason Obama hasn’t been able to do more to energize the economy is the ‘obstructionism’ of the GOP – in fact the ‘O’ in there could stand for ‘obstruction’…then the ‘G’ would be ‘greed’ and ‘P’ ‘prejudice’…that pretty much covers their strategy…above all else, Republicans love it when a plan comes together.

Lil' Barry Bailout

July 19th, 2011
10:03 am

When big-government libtards want to find out why businesses aren’t hiring, they ask folks in the…government?

No wonder–they don’t like the answers they get from the folks who make hiring decisions.

stranger in a strange land

July 19th, 2011
10:03 am

Gordon to your post @ 0911 – I hear are crickets chirping

Lil' Barry Bailout

July 19th, 2011
10:07 am

Dirty Dawg, when Obozo loses, Americans win.

GOP = America

Rob Woodall has never held a job outside the Washington DC Beltway. What does he know about people living and working on Main St?

July 19th, 2011
10:15 am

Kyle…..

Wynn says: “his company could hire 10,000 more people — leading to another 20,000 jobs indirectly.” …but he won’t because the Obama administration is “the greatest wet blanket to business, and progress and job creation in my lifetime.”

BS

Wynn will hire another 10,000 employees as soon as people start visiting Las Vegas again in numbers to justify hiring another 10,000 employees.

Come on Kyle, be a thought leader. Make a compelling argument rather than being lazy and posting Wynn’s garbage.

Junior Samples

July 19th, 2011
10:21 am

Interesting. Business owners are paying less in taxes than they have historically, and yet they hold the economy hostage by not hiring and stashing cash abroad. Waiting for a ‘more business-friendly environment”… You don’t need a Ovaltine Secret Decoder Ring to figure out the answer.

I gladly pay taxes to live in this country. Why do business owners feel entitled to not pay taxes?

Stevie Ray

July 19th, 2011
10:24 am

Appreciate the response ByteMe. As you know, the regulations applying to publicly traded, global corporations are more substantial than state based, private employers. The IRS, Social Security, Medicare (both of which are bust bringing true government balance sheet debt to $124 Trillion), ADA, EPA, SEC, Qui-Tam actions, COBRA, ICC, SEIU (in non right to work states), NLRB, and Medicaid (shared with states)in addition to the various state entities in every state of operation. It’s quite a puzzle given the uncompetitive corporate tax, gains in technology, and entitlements of such as job-banks, its’ no wonder job losses are significant.

Lil' Barry Bailout

July 19th, 2011
10:26 am

“Why do business owners feel entitled to not pay taxes?”
——–

Link please.

Stevie Ray

July 19th, 2011
10:35 am

Finally, every employer and employee is getting the shaft in terms of rates and deductibles with those under 500 employees getting the biggest hosing. I wonder given the fed’s track record with insurance like ventures (SS, Medicare, Medicaid, Freddie, Fannie, Federal Flood, FEMA) all of which are basically bankrupt, we would truly be better off with ObamaCare….I’m scared it’d be like getting a drivers license or dealing with the IRS..

conobjective

July 19th, 2011
10:37 am

One could logically argue that uncertainty of fixed and variable costs are preventing businesses from optimal employment of labor or capital given a level of demand. However a CEO could only hold out so long in the presence of expanding demand before the reality of missed opportunity and profits begin to effect the company’s overall market share. Additionally employment is and has always been a short-term variable cost … meaning a business can simply hire or fire at will.

Ignorant Conservative

July 19th, 2011
10:40 am

Great piece, Kyle. A little rebuttal, maybe? I know a couple of Muslims who say all Americans are infidels, too. That’s gotta be true, too, right? I think Kyle’s just pandering to the region’s lowest common denominator – ignorant people.

Econ 101 for the unenlightened (read: conservative). A business owner will hire more people than he has today when one and only one thing happens – more people walk in the door to buy the businesses goods or services. That’s how it works. Period. Put more spending money into the pockets of the people who spend it, and businesses will hire.

ByteMe

July 19th, 2011
10:41 am

its’ no wonder job losses are significant.

Those same regiment of regulations and entities were in place in 2005. So why weren’t job losses significant then? In fact, all those regulations and entities you mention were in place in 1999, but unemployment was quite low.

You posit causation where I’m not sure you can even posit coincidence.

We are coming out of a credit bubble. Credit/Debt-driven recessions act much differently than normal business cycle recessions, because everyone — consumers and businesses alike — have to deleverage enough before they can start to positively affect the economy. Government can take up the slack (and has), but now the push is on for the government to deleverage as well, so who will pick up the slack? The answer is: another recession.

And for Republicans, it’ll all be Obama’s fault. ;)

Bart Abel

July 19th, 2011
10:42 am

RE: “And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right.”

On this issue of healthcare costs, they’ve been rising at levels way beyond general inflation for years. The CBO says that it will reduce the deficit by nearly $1 trillion dollar because it will reduce the growth of health care premium. Anybody who blames Obama for health care costs that were previously rising at dramatic rates under Bush is misinformed.

In the area of being frightened to death of new regulations, which regulation(s) is/are he frightened of? How much will it/they cost him? How much will it/they cost his business? What problem(s) has such regulation(s) sought to address? How much did those problems cost our economy and who did they affect? Under what laws are those regulations being enacted?

In fact, Steve Wynn doesn’t have an answer to those questions. He appears to be repeating talking points that he absorbed through the media, and now we’re supposed to take his general proclamations as fact.

Let me say this on the issue of regulations. The President takes an oath to administer the Constitution and the laws of this nation. If Congress passes a law, then he is duty-bound to enforce it.

For example, those who complain that President Obama is a socialist because he enforces environmental laws signed by Richard Nixon and specified by a right-wing Supreme Court (who decided that carbon emissions are pollutants), I would argue, are the ones are don’t believe in our Constitution.

DBCOOPER

July 19th, 2011
10:45 am

Any facts to support that? Do share.

Obama Care – FAIL How can you put 30 million uninsured people on the dole when we are in debt now.
Stimulus- FAIL Borrowed a trillion dollars from China that did not produce ANY private sector jobs. The ones they did claim cost the American taxpayer $250,000 each.
Employment- Fail Candidate Obama promised the American voter that with his plans and schemes un-employment wouldn’t rise above 8%.
Government Oversite on Business- FAIL A business gives a tax break to any business that hires an employee. (basically pays them off to hire somebody) Guess what percentage of those workers make it one year?
Diminshing Dollar- FAIL The government printing of money and the rising U.S. debt and deficits have reduced the dollar around the world to lowest in decades. It will soon be replaced if you believe “The Economists” and other publications.
Private Business growth -FAIL Just check the numbers! The establishment and growth of small business in this country are way down. While government hiring and payroll is at an alltime high.

I could go on for hours.

tell the truth

July 19th, 2011
10:45 am

The main redistribution that is going on in America is to take from the poor and middle class to give to the wealthy. Has been for the past 12 years- the wealthy are NOT paying their fair share of taxes. They know it and you know it. And yet that is the main battle cry for you Repubs. Cutting taxes is not the correct answer to every financial question.