Capitalism Works in Las Vegas, Nevada!
Las Vegas Home Sales Up Staggering 86%!
Las Vegas First Out of Recession?
By Wayne Allyn Root, 2008 Libertarian Vice Presidential nominee
While President Obama moves our country and economy further away from capitalism, entrepreneurism and personal responsibility, my adopted hometown of Las Vegas, Nevada proves that the opposite direction is the one that works. Despite the worst economic downturn since 1929 (that I correctly labeled as a “depression” in the Spring of 2008), and a national economy showing few signs of life, Las Vegas is springing back to life. As usual, the most capitalist and fiscally conservative economy in the nation (Nevada) will be the first out of the recession.
In a sign that the local Nevada economy is far outpacing the nation, despite today’s gloomy report that national retail sales are once again in decline, Las Vegas home sales were up a staggering 86% month-to-month. Yes I said 86%. In the middle of an economic tsunami, capitalism is alive and well in Las Vegas. This is the 12th consecutive month of improvement in month-to-month home sales in Las Vegas. Other signs of recovery in Las Vegas: hotel occupancy is up; the visitor count is up; and MGM Mirage just announced its first increase in hotel room prices in months. All of these are positive signs that Las Vegas is springing back to life to lead America’s recovery.
But it’s who is buying all these Las Vegas homes that is important. Almost 40% of the homes have been bought by absentee buyers- otherwise known as INVESTORS. These are the people President Obama seems to dislike- he calls them “speculators” as if that is an evil word. They are high-income earners willing to risk hundreds of thousands of dollars (or millions) of their hard-earned money to buy property during an economic Armageddon. They are heroes. Their courage is uplifting. Yet Obama chooses to disparage and denigrate them in the media; he punishes them with the tax code designed to soak the rich and raise capital gains taxes on investors; and worst of all, he just stole their property (literally) in the Great Chrysler Robbery (where Obama handed 55% of the company to the Auto Workers Union- which was last in line and unsecured, while ignoring the rule of law to rip off secured creditors who were legally first in line).
Ironically, these speculators serve as real-life proof that capitalism works. They are not bad people to be attacked, discouraged, denigrated, and punished. If Obama understood capitalism, he would understand these are the heroes of the American business world. These are the only people that can save our economy and Obama’s Presidency from ruin. They are the entrepreneurial risk-takers that we so desperately need to invest in America again. To build businesses, fund businesses, and create new jobs. Without speculators (risk-takers) looking to earn a big payday, who exactly would invest in stocks, bonds, real estate, and small business? Who would create the new jobs that our economy so desperately needs? Without speculators earning big profits, who would pay the taxes that Obama so desperately needs to pay for his record-setting spending?
Thank goodness for greedy capitalist speculators. To encourage them, we should be lowering income taxes, or better yet, suspending them for a one-year Tax Holiday. We should be lowering capital gains taxes, or better yet, eliminating them to encourage investment in American stocks, real estate and industry from around the world. If you truly want economic recovery President Obama, tell speculators that we appreciate their risk, and will reward them handsomely. Then watch a worsening economic nightmare morph into the economic comeback of a century.
Why are speculators betting it all on Las Vegas? Why are we poised to become the first state out of the depression? Because we are the ultimate free market economy. We are the test tube baby. Nevada represents everything Obama stands against. We are a Wild West frontier state with a constitution that bans income taxes, but welcomes guns in the hands of law-abiding citizens. Even more importantly, our state constitution limits the time that politicians can spend in session- our legislature is only allowed to meet for 4 months every 2 years. That limits the damage politicians (like Obama) can do to our economy. We also have made term limits the law for politicians in Nevada.
As Obama moves towards more spending, more taxes, “soak the rich,” and hire more government employees as his flawed economic strategy, he might just want to study our Nevada model. We have no income taxes, no business income taxes, no capital gains taxes, no death taxes and property taxes limited by law. We choose to legalize “sin” and tax it- thereby lowering our other taxes. That is a model for the country.
We also have among the fewest government employees per population of any state in America. That Mr. Obama is certainly the model for America. That could be why Nevada has been the #1 fastest-growing state in America for the last 25 years. More importantly Mr. Obama, your own Census Bureau predicts our state will be #1 in America for growth in the next 25 years. Lower taxes and smaller government is the answer.
Even with so few government employees, our state has over $10 Billion dollars of unfunded employee pension and health care costs. Even with so few government employees, our state economy is under siege (and debt) from government employee costs, compensation and pensions. Yet our problems are small compared to states like California, New York, Michigan or Obama’s home state of Illinois- all of which are close to bankruptcy under the weight of government employee cost. Obama’s “solution” for the nation is more spending, more government hiring, more powerful government employee unions, and bigger pensions and lifetime health-care benefits for government employees. Obama’s plan is unaffordable and unsustainable. Nevada proves the lie of Obama’s plan.
Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. For more of Wayne’s views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com