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Herschend Family Entertainment CEO Joel Manby on the impact of economic uncertainties, government regulations, and taxes on businesses.
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All right so is little bit bump here than Dolly Parton today it would more ups and downs and a roller coaster my next guest knows -- Discovery on the use of blogs all over the country including Dolly -- Per -- family entertainment CEO -- -- be joining right now he's got a new book -- love work seven timeless principles were effective leaders.
Since stores everywhere the president might want to.
So -- You for your industry and for an entertainment industry in the larger sense.
The idea is always been that people will always take time to chill out enjoy themselves but now even that it is is in some doubt right what's -- on.
Well it's -- -- difficult the last few years in the economy for everyone including us discretionary dollars are are hard to come by.
And I think there's.
Tremendous uncertainty out there in the economy there's uncertainty over.
Tax rate there's uncertainty over legislative burden there's uncertainty over our ability to handle debt and that uncertainty.
Causes everyone to be nervous I think about investment and in the future.
Now we've been managing find through that there has been -- very difficult -- years.
But I could see attempted to price your locales Lucy go to Disney World -- universal.
-- Dolly wood is not you know.
At nearly as expensive.
It's pretty interesting draw its got a lot going -- -- so what what is changing here what are you saying.
Well for us personally -- would actually were having a fantastic here and we don't actually on the part Dolly does but we operated for her and we have had 26 other parks around the country.
But we're having a great year there we have a tremendously ride called the wild eagle that's a fantastic so we're doing very well there.
And I do think when gas prices are higher people tend to stay closer to home so -- were allowed is going from the TV to Tennessee that is southern.
States.
Yes yes and we we job more about 80% of our audience from -- 300 miles so it is pretty local audience are what about the other -- The other parks are all doing fairly well this year we're above -- single digits all the way around.
But yeah I'm very concerned about the future honestly I think that our our country and the world.
Has to have a solid plan and right now I think there's as I said too much uncertainty.
About all three of those areas I discussed that made me nervous about future and and -- and people are nervous in their little uncertain obviously.
Investment is not as aggressive and if we -- we -- feeling there's going to be higher tax rate.
Tax rate directly impacts investment while the story -- obviously if taxes are higher -- and invest as much so.
And that's not just corporate taxes also personal income tax Minnesota companies are LLC's.
And -- are -- a personal income rates so.
It's not just corporate rate that we have to be concerned about and we need legislation that is certain going forward certainly you know how to -- In an and -- the future that's -- it's kind of rabbits stopped at a service was not a he had died Obama's state and it was an -- leaders state that you had a golden opportunity here.
To at least address some of those concerns -- give business more to the point some assurances that things are worried about.
Are gonna happen at least anytime soon you're gonna extend these tax rates so that you could take that worry off the table.
You're gonna cool our regulations they be given the regulation holiday so you take that problem off the table.
-- you're gonna stop the brow beating a business for awhile so they can feel like didn't come out from under.
On and you're gonna talk about serious reform so they can look forward to that another -- -- them.
Something look forward to I think psychologically.
-- seals like yourself -- that different from.
-- average folks you need.
Some confidence.
And then some really look forward to something and right now I guess from what you're saying there's nothing much to look forward to or commit capital.
Supply on.
When not not with this president unfortunately we need certainty going forward over what the environments going to be you know I like -- what would you like to see I mean that would make you -- -- -- I don't know would make you -- do it another -- -- Hire more -- forward what would you do.
Well first of all on the legislators fled the legislative burden where this uncertainty we need to know where Obama -- headed because that has tremendous impact and any company with seasonal employees like -- I'd also like certainty on the tax rates we can plan from our standpoint how much is gonna have to go to taxes vs capital investment.
Now on the debt itself would like to be nice to see if the country have a plan.
To get at least a dent in our debt that all this rhetoric about taxing the 1%.
If you taxed a 100% of the -- this country everything.
It would indeed it would probably impact of annual deficit by about.
2%.
It doesn't solve the problem -- all this rhetoric anyone who knows anything about the numbers knows it's not gonna solve the problem.
And the fact that private sector is doing better than public.
Last time I looked public sector employees or making 43%.
More per hour.
And benefits and pay and a private sector employed.
So if yes -- -- I'd like I'd like certainty in those things.
And I'd like to see public sector employees index off a private sector employee wages and benefits so we get things back in line now hopefully the election in Wisconsin.
The election on California -- was San Jose and San Diego you know hopefully we see things tending to head towards the right direction.
And then things will hopefully get under control but we need a president that's the leader that does the right thing and those -- my personal opinions -- it's -- dollars opinions.
But certainly I was only -- better leadership.
I want whenever say how he would never say no -- very well Dolly Dolly loves everybody but one other point -- -- could make is sure.
You know -- we have made tremendous sacrifices in the private sector for instance this year our company Hearst entertainment.
And the last few years we be either given no raises or very small races this year were going gonna -- racist if any of us.
If we perform.
And if we hit our numbers and grow.
And yet through all this typical ten years our company has been able to grow nine out of those ten years we've delivered.
Double digit returns we petition you know and that's and discretionary business.
And I think it's because of how we lead is a company which actually is why I wrote the book you -- call love works.
It's because we lead in a very unique and different way and we teacher employees to love each other.
And I like to see a little bit more of that.
In this country and stop bashing business and point to businesses like ours or chick filet and others who can lead to love and do things the right way.
Not that's a -- an idea but I just -- -- breath -- muscles like.
Well then you know what you've got to start talking about are you doing in out in the book you -- or hopefully get things changed around.
Thank you told loved works said -- timeless principles for effective leaders good seeing it.
