Gaming magnate Steve Wynn’s remarks about the “wet blanket” effect on the economy of Obama initiatives has been making headlines. Wynn was pretty damning:
And I’m saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. 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.
The Weekly Standard’s Jay Cost makes a pretty convincing argument that the biggest impediment to growth is Obamacare. Nobody knows what Obamacare will mean for the bottom line, but it is likely to put a damper on hiring for years to come. Obamacare establishes health care exchanges (somebody care to tell me in plain English what an “exchange” is?) that are “so clunky that businesses are having a hard time figuring out what is going to happen.”
But most of them fear that, whatever happens, they are going to be on the hook for a lot more money for healthcare costs. So instead of investing and hiring people, they are sitting on their money, waiting to see what Obamacare is going to do to them.
Cost culls quotes from the “Beige Book,” an anecdotal collection that assesses business conditions in the Fed’s 12 districts. Many firms, it seems, won’t hire because of the expected increased costs from Obamacare.
So it is possible that Wynn could have been even more specific than he was-it’s not just the administration actions in general that are stiffling economic recovery, but, more than anything else, it is the administration’s singular achievement–Obamacare–that is keeping investors from investing.