Fireside Chat, Conference Presentation
Shaping Skylines and the World: Steve Wynn and Steven Roth
- Conference Logistics & Costs: Attendees paid an average of $12,500 to attend; Steven Wynn received 50% of the proceeds, with the remaining 50% allocated to Stephen Schwarzman by Mike Milken.
- Format Disruption: The panel deviated from the scheduled "Structures to the Sky" topic due to a lack of moderation and the use of an outdoor tent venue, leading to an unstructured, ad-lib discussion.
- Labor Market Forecasts: Wynn cites sociological predictions suggesting that within 15 years, global unemployment could reach 25%, potentially resulting in destitution, government subsidies, or a shift to four-day workweeks with maintained wages.
- Unemployment Solutions: Wynn argues the government's primary role in a low-labor future is to create demand for labor, which historically emerges from private sector ingenuity and ambition rather than state planning.
- Regulatory Barrier: Wynn asserts that "mountains of regulations" and punitive tax policies have erected barriers to human ambition, stifling the creation of new businesses and jobs.
- Policy Proposals:
- Government Efficiency: Proposes reducing the federal workforce and budget by incentivizing departments to spend $1 less than the previous year while offering a 20% bonus on savings.
- Education Incentives: Suggests offering teachers a $75,000 tax-free bonus for achieving 90% student pass rates on standardized tests, bypassing union constraints.
- Job Creation & Repatriation: Proposes giving businesses tax credits for creating sustainable jobs with health insurance, alongside a policy to repatriate offshore capital at a 10% rate in exchange for payroll expansion.
- Healthcare Cost Analysis: Wynn attributes the US double-spending on healthcare compared to the free world to a litigious legal system and the overuse of expensive diagnostic technology, noting that capping pain and suffering damages in Texas reduced malpractice premiums by 43%.
- Obamacare Critique: Wynn characterizes the Affordable Care Act as a "7-10 split" in bowling, stating it simultaneously harms management and labor, and requires significant legislative fixes.
- Legislative Strategy: Wynn predicts the President's domestic success depends on Senate leadership (Mitch McConnell) navigating the filibuster and the political reality that the Freedom Caucus and moderate "Tuesday Group" must compromise to survive re-election.
- Immigration Stance: Supports deporting criminal aliens and drug dealers while maintaining protections for DACA recipients; argues that "self-appropriating" residency violates the rule of law and that open borders require a moral and legal framework.
- Election Dynamics: Credits the 2016 election with exposing deep societal fractures regarding race and immigration, forcing constructive dialogue on previously suppressed issues.
- Retail Industry Outlook: Predicts traditional retail is in trouble unless located in high-traffic destinations (e.g., Fifth Avenue, Las Vegas), noting that online competition renders regional shopping centers vulnerable.
- Real Estate Partnership: Wynn disclosed a 70% ownership stake in a New York property with the Kushner family (President Trump's in-laws), stating his lawyers determined no special business advantage resulted from the political connection.
- Personal Wealth Origin: Wynn clarifies he started with zero monetary capital, attributing his success to cultural traditions, parental guidance, and personal hustling rather than financial privilege.
- Education Crisis: Identifies the US K-12 education system's low global ranking (27th) and the 40 million unemployable individuals as critical failures requiring "hand-ups" rather than "handouts."
- Wynn's Core Business Philosophy: States that 80-90% of guest experience is determined by employee treatment, not physical amenities, driving his culture of "self-esteem" and belonging over traditional payroll management.
- Hiring & Culture Strategy: Wynn avoids layoffs by leveraging the psychology of self-esteem, using incentives to ensure employees police their own behavior and strive to belong to the "best" workplace.
- 1982 Atlantic City Case Study: During the 1982 recession, Wynn provided new cars and insurance to 350 supervisory employees to prevent layoffs; this boosted morale and productivity, increasing second-half revenue by $80 million despite the $5 million cost.
- Diversity Approach: Wynn identifies as "colorblind," having appointed a female president of the Golden Nugget in 1978, emphasizing that talent and competence matter more than demographic labels in the workplace.
- Political Donations: Wynn and Senator Cory Gardner formed a joint venture called "Strengthen the Majority" to fund efforts aiding Senate leadership in passing legislative agendas.
- Future Outlook: Expresses "joyous" optimism regarding the President's ability to learn rapidly and compromise, urging the audience to actively support job creation and policy reform.