Capital Flight

Time keeps on slippin,' slippin,' slippin.'
Into the future
--Steve Miller Band

Toddo notes that a number of his acquaintences are pulling plugs on businesses. This rant by Steve Wynn includes similar thoughts.

Essentially, the rationale for shutting down ops is essentially one of uncertainty. Uncertainty created by unpredictable government intervention. A regime that pushes the limit related to taxes, regulation, etc makes it difficult to plan. Moreover, returns on capital are likely to be reduced when government interference increases.

A plausible rival view is that this period merely represents a changing of the guard. Major change creates opportunity for those who correctly anticipate the challenges. After all, the Depressionary Thirties constituted a time when some embarked on paths to great fortunes.

While there may be some truth in the latter, unfriendly business environments are less likely to attract capital and to invite risk taking on a level that enables the achievement of high living standards for a society.