Saturday, August 28, 2010

Steve Wynn - Ratexian

Thanks to a member of our group who sent along the link for this video of entrepreneur Steve Wynn passionately describing the problems with his businesses & the American economy.

Wynn is really explaining the principles of what economists call Rational Expectations (Ratex). This theory interprets the interaction of government policies & individuals, including regular people as well as entrepreneurs like Mr. Wynn. Ratexians, like Mr. Wynn now seems to be, argue that government activism in markets causes uncertainty, complications, confusion, second guessing, & is extremely perilous. Ratex is a 20th & 21st century version of Adam Smith's beliefs that free markets are better for an economy than government tampering.

Ratex argues that active government interference is @ best ineffective & in our current case - it makes things worse.

Mr. Wynn obviously falls in the "makes things worse" camp because as of 2009 he is listed as the 468th richest man in the world - down from 277th with a net worth of $1.5 billion down from $3.9 billion.

It is no wonder Mr. Wynn appears bitter with BO. I have my own reasons & not all of them are economic.

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