Mitt Romney's Very Bad Week

[Guest]

It started Monday when the Arizona Immigration Law, that Mitt Romney said was a model for the country, was mostly overturned and found to be unconstitutional by the Supreme Court.

Then yesterday, when the Romney campaign bus was all gassed up and ready to circle the Supreme Court honking joyously, the Supreme Court again ruled that the Affordable Care Act is constitutional and will stand. Perhaps Romney should buy a copy of the constitution and read it before taking any more positions.

Then last night, the Dinner with the Donald contest had to be canceled for unknown reasons and Romney instead had a clandestine meeting with the Donald.

Earlier, The Washington Post ran a scathing article about Bain Capital stating that companies that Bain owned were pioneers in outsourcing jobs to China and India. The Romney campaign went whining to the Post editorial board asking for a retraction, but the WaPo responded that they are sticking with their reporting.

Voters may not fully understand how equity investment works, but they very well understand outsourcing of US jobs. A lot of voters have had it happened to their job or a friend or a family member.


Romney’s Bain Capital invested in companies that moved jobs overseas - The Washington Post (http://www.washingtonpost.com/business/economy/romneys-bain-capital-invested-in-companies-that-moved-jobs-overseas/2012/06/21/gJQAsD9ptV_story.html)

[Guest]

....The Washington Post ran a scathing article about Bain Capital stating that companies that Bain owned were pioneers in outsourcing jobs to China and India. The Romney campaign went whining to the Post editorial board asking for a retraction, but the WaPo responded that they are sticking with their reporting.

Voters may not fully understand how equity investment works, but they very well understand outsourcing of US jobs. A lot of voters have had it happened to their job or a friend or a family member.


Romney’s Bain Capital invested in companies that moved jobs overseas - The Washington Post (http://www.washingtonpost.com/business/economy/romneys-bain-capital-invested-in-companies-that-moved-jobs-overseas/2012/06/21/gJQAsD9ptV_story.html)Y'know, you can't embrace the concept of the free market capitalist system and "have it both ways" when it comes to job creation. You're right, most voters are clueless when asked how "private equity" or "venture capital" works. That doesn't include me. I was in the business for the last ten of my working years.

Investment firms like Bain Capital are among the " purest" practitioners of free market capitalism. Their objective is simple--provide the maximum return on the money provided by their investors. What's important for people to understand is that private equity firms feel no long-term responsibility to the employees or other stakeholders in a company, and certainly none to the government or the economy as a whole. That might sound coarse and unfeeling, but that is what free market capitalism is all about--maximizing profits for the purpose of paying the highest return to their investors. They are short-term owners of companies--typically only 3-5 years--before they plan to sell the company either privately or by a public offering of stock.

So when people like the Washington Post or other politically-driven critics comment on how Bain either didn't create jobs, or relocated jobs offshore, they fail to recognize that is not only Bain's right as an owner, but their obligation to their investors that lead to those actions. It is not illegal or immoral for Bain to act as they do.

Pure and simple, if American workers were as skilled and would work as productively for the same wages as foreign workers, and if the regulatory and tax environment were the same as overseas, Bain would build the plants and hire workers here in the U.S. But if they can produce more profits elsewhere, then outsourcing jobs to other countries is the proper decision for them to make.

If politicians want to create jobs, other than expanding the number of people employed by the government itself, using policies, regulations and laws they can provide a pool of well-educated workers, and if the tax and regulatory environment is favorable investment and job growth will follow. Where our politicians get confused is creating laws and regulations that do one thing, but expecting other results.

Take a look at how Canada or India or China or South Korea governs themselves, plans for their economies, makes sure that job growth is enhanced. You'll see what I mean.

[Guest]

did i miss unemployment dropping to 8% or any major deficit reduction lately?

can't agree with you more, vk! i have found that my friends who do not benefit from capitalism are the folks who do the most complaining in our circle of friends - but we listen to them, anyway; and they are always in our circle of friends.

[Guest]

The Boston Globe also ran a series of articles on Mitt Romney's deals with the junk bond king, Michael Milken, who at the time was under the most intensive scrutiny ever by the SEC. Romney doesn't talk about the deal, because the department store they were buying eventually went bankrupt.

This is all fine and dandy for free market capitalism, but there is no connection to running the country.


Mitt and the junk bond king - Boston.com (http://articles.boston.com/2012-06-24/business/32395686_1_mitt-romney-drexel-employee-junk-bond)

[Guest]

[snip]
This is all fine and dandy for free market capitalism, but there is no connection to running the country.


Mitt and the junk bond king - Boston.com (http://articles.boston.com/2012-06-24/business/32395686_1_mitt-romney-drexel-employee-junk-bond)

thank goodness that is just your humble opinion. if romney can do for the country what he and bain capital did for their clients - i will be one happy client! and that's my humble opiniion! ;)

[Guest]

While reading the posts on this thread thus far it has occured to me again that liberals fail to comprehend the limits place on nature. There is the real world and then there is liberals Peter Pan Fantasy World. I speculate for instance that the blame for radical environmentalist and animal right groups began with Disney's "Bambi". Liberals really got confused as kids watching that bad bad man shoot "Bambi's mother

And of course that translates to situations such as Bain Capital. Bad bad people why are you obessing over breakeven points, goals for profitability research and development.

I had to attend college nights and worked days. My home state force me to join two umions. I watched in amazement on how the unions would manipulate actions that reduced productivity while increasing compensation and benefits. It was a disaster waiting to happen and indeed the locomotive company that provided employment for me went under directly affected by the heavy burden resulting from this union manipulation .

There is an economic term called "competitive advantage". It is essential for success. The village Kahuana did a marevlous job of detailing that economic reality. Liberals would be wise to take heart. Unlike Peter Pan's world, jobs are not created out of thin air and deer have fed families for centuries.

[Guest]

Outsourcing, offshoring, or exporting US jobs, whatever you want to call it, is not a winning issue for any candidate to run on. This is particularly true in the rust belt - Scranton to Oshkosh. This could be why Mitt Romney is not polling too well in PA and OH. Obviously, it is hurting, otherwise why would his campaign ask the Washington Post to retract the story. It's doubtful we'll see Romney standing at the podium bragging about how much money he made for himself and investors by sending jobs to China, India, and other foreign countries.

[Guest]

with all the one sided blabbering about keeping score how about doing the same for both sides....outsourcing for example outsourcing seems to be the talking point of preference....how many jobs have been outsourced since Obama took office? You can start with GE moving the medical systems operation to China (you know the company Jeff Immelt heads up that is on the JOBS PANEL reorting to Obama).

And then while looking at Bain try to do it from both perspectives....I know a very difficult challenge but none the less really neccessary to be honest (ANOTHER CHALLENGE?). wHEN bAIN OR ANY OTHER SIMILAR COMPANY DOES THEIR JOB, SOME COMPANYS ARE REDUCED OR SHUT DOWN TO MAKE THE REST OF THE COMPANY (excuse the caps...not intended) survive. And there are others that are improved to the point they begin adding jobs. Therefore one must, you just hafta from a reality point (another challenge?) how about the people who got to keep their jobs because some not needed were let go....a hint it is usually more than 90%. And how many new jobs were added to those that were improved by other than reducing people?

ANother hint? Companies like GE that are increasing employment world wide while unemployment here in the USA is either flat or going up.

And yes I suggest you look at the outsourcing from both sides since Obama took office.

Business as usual is such an impediment to progress.

btk

[Guest]

The difference in your example and mine is that President Obama did not personally make hundreds of millions of dollars by outsourcing jobs.

[Guest]

SO It is OK to outsource American's jobs offshore as long as one does not get the credit for making money off the process? I don't really think you meant for that to be an answer, but it is what you said!!!!

In addition, the "hundreds of millions" made was not for outsourcing. It was the price paid to Bain to come in and fix the ailing entities of which a small part was outsourcing.....SOME of which may have gone overseas (we really can't count the outsourcing that went to another American company as a contribution to unemployment can we....of course NOT).

The Bain argument for some of us who were in the business is an empty hat for the partisan patter to use......first too many have no idea what it is all about except what they hear on the news. Secondly the end result of a Bain involvement more often than not results in saved businesses.

Yes the excess is removed in the process. Remember that concept foreign to most Obama supporters....if its wrong or broke fix it!

btk

[Guest]

The difference in your example and mine is that President Obama did not personally make hundreds of millions of dollars by outsourcing jobs.
exactly, He has mooched of the system most of his life.
,

[Guest]

The difference in your example and mine is that President Obama did not personally make hundreds of millions of dollars by outsourcing jobs.

exactly, He has mooched of the system most of his life.
,

Please expand on that with details and links. Do you mean working for the government is mooching?