Business is booming in Las Vegas. Investors from around the globe are investing tens of billions of their money…right now, in the middle of a terrible economy. Why?
I love Las Vegas. I don't mean to disparage it. But the reality is, Las Vegas is situated in the middle of an ugly desert. In the summer it's an awful 110 degrees. There is no reason anyone would invest billions of dollars here, instead of say San Diego or Los Angeles or San Francisco or Denver. All of which are much more naturally beautiful places. Or Atlanta, Charlotte or Dallas- big time cities with huge populations both in the city and nearby. Vegas is in the desert, in the middle of nowhere. Why are smart banks and big companies gambling on Las Vegas?
It certainly isn't because the U.S. economy is booming. It's not.
The national media tries to project a positive picture. But they are covering up the facts to protect their buddy Obama. The reality is that the U.S. economy is in freefall. Have you seen the GDP numbers for the first quarter? We’re in reverse. http://money.cnn.com/2014/04/30/investing/gdp-economy/
Obama blamed it on cold weather. Yet somehow Canada’s economy is booming, with much colder weather. http://business.financialpost.com/2014/02/28/canada-gdp-surges-2-9-in-final-quarter-blowing-past-expectations/
Tax revenues in 26 states are still lower than in 2008. And the gain from the other states is merely because they raised tax rates. http://www.moneynews.com/Economy/Pew-Recession-States-Revenue/2014/05/19/id/572183/?ns_mail_uid=32342417&ns_mail_job=1569821_05202014&promo_code=sl335zgr
The jobs picture is even worse. The media claims unemployment is going down. That narrative is either pure fantasy or fraud. The reality is that the unemployment rate improved because 806,000 people stopped looking for work last month. http://www.dailykos.com/story/2014/05/02/1296044/-Government-reports-increase-of-288-000-jobs-in-April-Official-unemployment-rate-falls-to-6-3#
That’s almost one million of our fellow citizens who have given up hope…in a month. The U.S. economy under Obama's taxes, spending, entitlements and regulations can be summed up with two words: decline and disaster.
So why is Vegas booming? "The Vegas Way" is a model for turning around the entire economy.
Homes are selling like hotcakes in Las Vegas- with multiple offers (often in cash) on each property. Las Vegas and Nevada lead the nation this year in home appreciation. http://www.reviewjournal.com/business/housing/survey-nevada-leads-us-home-price-gains
Tourists are flooding into Las Vegas- we are on track to break 40 million tourists this year (an all-time record). http://www.reviewjournal.com/business/tourism/vegas-tourism-hot-hot-hot-visitation-rises-third-straight-month
And last month Nevada was 2nd in the nation in jobs created. http://www.reviewjournal.com/business/economy/nevada-unemployment-rate-sees-biggest-month-month-drop-more-30-years
But the best news of all involves money- investors are putting their money where their mouth is. It seems everyone wants to invest in Las Vegas.
*Asia-based Genting Berhad begins construction this year on the $4 billion Asian-themed “Resorts World Las Vegas,” a 6000 room mega-resort on 87 acres, complete with a panda exhibit, waterpark, rooftop sky park and convention center.
* “The High Roller,” the world’s biggest observation wheel just opened. It dwarfs even the famous London Eye. Caesars Entertainment spent $550 million to open The Linq- an outdoor retail, dining and entertainment district all built around the massive High Roller.
*Caesars also just recently opened the world’s largest Nobu restaurant inside the world’s first Nobu luxury hotel. The hotel partners are world famous Japanese chef Nobu Matsuhisa and actor Robert De Niro.
*MGM Resorts just announced “The Park,”
an outdoor retail, dining and entertainment complex built around a 20,000 seat sports arena.
*MGM Resorts also announced a partnership with Cirque du Soleil to build “City of Rock,” a 33-acre, open-air concert venue with a capacity of 80,000 on the world famous Strip.
*The Cromwell, a $185 million high-end luxury boutique hotel opens this month. It features a restaurant from celebrity TV chef Giada De Laurentis and a 65,000 square foot rooftop beach club/nightclub.
*On Labor Day weekend SLS Vegas opens. It’s a $415 million 1600 room hotel (formerly the Sahara) by the owners of a nightclub empire.
*Famous private equity company The Blackstone Group just days ago paid $1.73 billion for the stylish Cosmopolitan Resort.
Not one, but two massive water parks just opened in the Las Vegas Valley. Other resorts are spending hundreds of millions on renovations to their properties.
What’s causing smart businessmen to invest tens of billions of dollars in Las Vegas in the middle of economic decline, crisis and uncertainty? What’s in the Vegas water?
The answer is low taxes and fewer regulations. Las Vegas is America’s Monte Carlo. We have zero state income tax, zero business income tax, zero capital gains taxes, zero inheritance taxes and among the lowest property taxes in the country.
Investment is flooding in because everyone wants to do business in a state with low taxes. Everyone wants their money “working” in a place with low taxes. Everyone wants to create jobs in a place with low taxes. Everyone wants to live (or establish residency) in a place with low taxes.
That could be why so many of California’s most successful businesses are moving to Nevada…or exploring a move…or retiring here…or buying a condo here to claim residency. Isn’t it funny how suddenly anyone and everyone with either high income or assets in California wants a Las Vegas address? Go figure.
All of Nevada’s success proves that Obama’s vision is a failure. No one wants to work 12 to 16 hours a day running a business, while risking millions or billions of their own money, to then give the government half (or more) of what they make. That vision fails all over the world. It’s the reason EU countries like France, Italy, Spain, Greece and Portugal are insolvent and living a Great Depression that will last a generation. It’s the reason Cuba is insolvent. It’s the reason Venezuela has toilet paper and food shortages. It’s the reason the old Soviet Republic and People’s Republic of China have re-branded to capitalism.
Low taxes are the reason the Hong Kong and Singapore economies are booming, with unemployment in the 3% range.
Low taxes are the reason that low or zero tax states like Nevada, Texas, North and South Dakota are leading America is economic growth, investment and/or job creation. Everyone wants the same things in life- the freedom to start a business, invest our money and be rewarded, not punished, demonized or regulated to death for our hard work and success. Try as he may, Obama just can’t change human nature. Everyone wants to keep more of what they make.
Any state or country that offers that opportunity will boom. Any place in the world that offers “the Obama vision” (aka socialism or progressivism) will fail miserably. That is a fact.
Viva Las Vegas!