While the big story in America this week was Mitt Romney’s narrow win in the Republican caucus in Iowa, I was travelling the nation’s skyways and talking to regular citizens about their hopes for the coming year.
There’s a frustration that the economy is not moving forward at a quicker pace. But there’s also a forgetfulness that some of the proposed remedies, particularly those suggested in the past few weeks, have been tried and do not work.
Many like to talk about the outlandish in Iowa. Can you believe Michelle Bachmann loves assault weapons? Did Ron Paul really write the racist pamphlets that have his name on them? And what about Newt Gingrich calling Romney a liar on Election Day?
But the one point that unifies all the candidates is their willingness to cut taxes and reduce the size of the federal government. The thinking is this will attract business and create jobs. Even President Obama has gotten in on this act.
Such an experiment is already underway in Nevada, a western state known for Las Vegas, gambling and prostitution. The state is largely desert and looks like a huge swath of brown carpet from the air.
In Nevada, there is no income tax for individuals or corporations. Yet, the giant ratings house, Moody’s, has downgraded the state’s condition because of the gloomy outlook for the gaming industry. The reality is that the bust may get worse.
During boom years, Las Vegas overbuilt its hotel industry. Even at 80 per cent occupancy, there’s not enough business to support the city’s infrastructure.
Ten years ago, Las Vegas could be counted on to attract tens of thousands of high rollers from Asia. Big name entertainers from Hong Kong, Korea and Taiwan were imported, particularly in the Christmas season.
Now, Macau is home to one of the world’s biggest gambling paradises in China. The casinos, which are larger and grander than those in America, pulled in record revenues in 2011.
Las Vegas has tried everything. It has even marketed itself as a family destination. But entrepreneurs elsewhere, including Singapore, are showing no mercy.
Gambling destinations have popped up all over America. Americans don’t have to travel to Las Vegas to gamble. They can do it in Mississippi or Ohio or Missouri. Even Indian reservations have gotten into the act.
In Minnesota, a small group of Native Americans owns a massive casino outside Minneapolis, and recruit Hollywood entertainment. Across the street from the casino, many members of the tribe have mansions.
What happens when the zero tax strategy does not work? Services are cut. And that means everything from education to social services to healthcare.
This is happening in Nevada. So the primary election rhetoric in Iowa does not match the reality. The backdrop is that the American economy is slowly recovering.
Republicans are noticing, but they’re claiming that Obama is hindering a quicker recovery. And a quicker recovery, they argue, means reducing taxes in every possible way. We Americans are impatient. We want it our way, and we want it now.
That’s the motto of much of the fast food industry, which Americans have exported throughout the world.
Could we learn something from our Kenyan brothers and sisters?
Absolutely. There’s patience and perseverance in Kenya, especially when dealing with hardship. And there’s a sense of innovation and willingness to try something new. Is America listening?
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