reply to post by Diablos
When asked to back up Romney’s claim of having created 100,000 jobs, his campaign explains that 94,000 of those jobs are those that Staples and
Sports Authority alone have created to date (that is, long after Bain’s involvement had ended). So 6000 max, but just how many thousands of small
independent dealers who employed tens of thousands of people lost their jobs ...so did they really "create" jobs? We ended up with a huge Wal-Mart
like company that sold items below cost until they ran all the little guys out of business. The average employee pays is lower, no benefits outside of
management and all the profits go to a corporate office instead of spent in the local area.
Much has been written about Bain Capital's business model as one that sought out underperforming companies for takeover and slashed expenses of the
companies by among other things laying off workers. Many of these workers lost their homes and health insurance benefits. Once the companies were
streamlined, they were sold at a nifty profit for Mr. Romney and his shareholders.
Private-equity Romney —who pursued corporate buyouts that typically secured majority control of mature firms, helped reorganize them, then sold them
off a few years later. These were Romney’s business deals that scored the biggest gains during his time at Bain — and those that were
significantly more fundamental to building Bain’s industry-leading reputation than the small venture-capital investments that dominated the early
part of his business career. Ten of these private-equity deals produced 70 percent of the dollar gains that Bain made during Romney’s tenure from
1984 until 1999 — or about $1.75 billion in total — as the Wall Street Journal points out.
But these private-equity deals also resulted in some of the most high-profile bankruptcies and job losses that Romney’s political opponents have
seized upon. Four of the 10 companies that made Bain the most money under Romney went bankrupt, the Wall Street Journal points out. In 1992, for
example, Bain invested about $5.1 million in American Pad and Paper and reaped an estimated $102 million four years later when the company went
public. Ultimately, however, AmPad would go bankrupt in 2000.
Bain Capital is good at EXTRACTING Value, THAT IS THEY borrow against the existing assets of a firm to buy it, rearranging the deck chairs, firing
people to make productivity numbers (temporarily) look good, selling off parts of it, and bankrupting other parts leaving others holding the bag
(including the US Govt Pension Guarantee system), and arranging it all so that they are taxed at lower rates than your secretaries. This does not add
value to our country. In short, extracting value is not the same as creating value.
The real job creators are the local guys who mortgage their houses and work long hard hours every week to make a living, growing their companies, that
is real capitalism.
Read more: articles.businessinsider.com...