Sam Wyly may be one of the biggest billionaires that most people have never heard of. But we’re familiar with many of the companies he’s established, grown and led like Michaels Stores, Green Mountain Energy and the Bonanza Steakhouse chain.
With his track record, you can’t help wondering what he thinks about today’s economy. And as luck would have it, in Sam Wyly’s paperback edition of his acclaimed memoir, 1,000 Dollars and an Idea, he’s added a chapter on the “The Great Crash of 2008.”
Wyly says he sees an end to the current depression because “things have stopped getting worse.” But he adds it will be a while before they get better.
On the other hand, he says this is a great time to learn about your business so you’ll be ready to grow faster when things turn around.
Wyly traces this economic depression to a long-running super cycle of debt that dates back to when President Richard Nixon abandoned the “gold standard.” That followed shortly after 1969, the last year the United States had a balanced budget. It was around that time that Congress threw money at President Lyndon Johnson’s Great Society programs and stepped-up military spending.
Of course, the money created by this debt fostered a lot of prosperity including good jobs and a steadily improving quality of life for most Americans. But along with the good things came the huge inflation rates of the 1970s and a declining rate of savings. These trends finally hit bottom in the early part of this decade according to Wyly.
In the expanded edition of his book Wyly goes on to show the parallels between today’s economy and The Great Depression.
Wyly is in favor of “Cap and trade,” an environmental policy tool that delivers results with a mandatory cap on emissions. He actually would prefer a worldwide tariff on carbon emissions as his ideal solution. So even though he feels “Cap and trade” falls well short of his ideal he thinks Congress should hold their noses and vote for it. It’s the best remedy we have for now he offers.
Wyly’s interest in the environment dates back to his daughter’s days in elementary school. She asked him, “Daddy what are you going to do about air pollution?” That was during the time of deregulation of monopolies like airlines and energy so Wyly decided to get in the business. He founded Green Mountain Energy with the idea they would be successful not by selling cheaper energy but by selling cleaner energy. Wyly started what he saw as a patriotic business but it has also grown 27% a year.
Whether you’re interested in an interesting entrepreneurial success story or want an informed view of the current economy, this book is worth reading.
Article By Paul J. Welsh
Sam Wyly [15:19m]: 
Tags: 1000 Dollars and An Idea, author, billionaire, Bonanza Steakhouse, Cap and trade, Green Mountain Energy, Michaels Stores, Sam Wyly, The Great Crash of 2008
Good insights from a man who’s ‘been there and done it’ - great to hear of his new endeavor as well