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Zappos.com CEO Tony Hsieh delivers a keynote presentation at the MAGIC clothing industry convention in the Las Vegas. Don't worry about the tax breaks, he suggests to the states, because companies may have already made up their minds about where they want to be.
Zappos CEO Tony Hsieh was on a panel today at the Milken Institute Global Conference that I'm covering this week. The title was "Why Wait for Washington? How Can States Create Jobs and Economic Growth." Former California Governor Gray Davis was also on the panel, as was current Indiana Governor Mitch Daniels, so you had some good statehouse-level perspective. Paul Kedrosky, something of a Renaissance man, moderated.
I found one comment from Hsieh to be particularly interesting, in light of how we might reflexively think about how states can attract businesses. He said that, basically, tax breaks have not very much to do with it. Or more accurately, they're a nice bit of icing on the cake — as well as a negotiating tactic that entrepreneurs can use in their favor.
When Zappos wanted to locate their fulfillment center, they chose Louisville, Kentucky, primarily because it was close to Federal Express's hub. The company's recent decision to move its headquarters to Las Vegas — to downtown Las Vegas, no less — was because Hsieh and his team liked the weather and have some ambitious ideas about the role of cities in fostering a creating class, to use Richard Florida's term for a clustering of young, energetic people who are invested in making cities succeed.
The "Social Security is a Ponzi scheme" argument just won't go away. You'll recall that Rick Perry got in trouble for rehashing this allegation, made in his book, during a GOP candidates debate at the Reagan Library. Republicans then pivoted slightly, moving away from Perry's extreme view, toward their more traditional position: that Social Security needs to be "reformed."
The last time the GOP took a serious crack at reforming Social Security, George W. Bush was in the White House, and he put before Congress a proposal to privatize a portion of Social Security, insisting that investment returns were the best way for Americans to keep the system solvent.
Now Mitch Daniels has taken up the charge. Or I should say re-taken-up the charge, as the Indiana Governor, who's being touted as a possible vice-presidential pick, has been a critic of Social Security going back to the days when he was…George W. Bush's Director of the Office of Management and Budget.