Posts Tagged ‘Corporations’

Bain Capital

October 17, 2012 5 comments

Bain Capital.

It’s very interesting how Romney can talk about creating jobs, which yes he is probably talking about jobs in general but I think the key part left out is American jobs. The company he was given control of in 1984 (which he still holds shares in) has a history of shipping jobs overseas (especially to China), cutting jobs, altogether to cut costs and make profit.

 Now first you have to know what Bain Capital does or did as a company with Romney at its helm. Bain capital took companies that were struggling or that wanted to be more efficient and tried to make them profitable and Bain made money off of investment returns with those companies, in other words their goal was not to create jobs (which in a lot of cases this meant cutting corners to reduce profit loss). There were some  instances where Bain Capital took over a company, workers were laid off and they were told they could re-apply for those same jobs but with reduced benefits and pay. In other instances jobs would just be shipped overseas because from a pure profit stand point and as a business man it makes sense. Workers in the United States you would have to pay anywhere from let’s say $10 -$17 dollars an hour but in China the pay would be around 99 cents an hour. Which do you think is more cost effective as a Corporation? On that note, I’m sure he would of kept the jobs here if let’s say, he would only have to pay those workers $1 or $2 an hour….What most people do not know is that from the start of the company in 1984  (according to reports), 22% of the 77 businesses Bain invested in went bankrupt and some of those even closed down completely. Now some of them were successful like Dominos Pizza, Staples, Sports Authority but in general Romney made huge profits from Bain Capital and that was his primary goal, not to look out for the workers…To be fair though that was what the Company was about, buying and then selling companies, again the goal was not about creating jobs.

The problem with this though is that this person wants to be President and sending our jobs overseas is not profitable to America by any means. Would Romney apply his business model to his plans as President? That is not particularly known although I can say that I do think he would be good at cutting corners which he would have to do a lot of if he did implement a overall 20% reduction in taxes for everyone (including the very wealthy which was one of his lies during the first debate). I’m sure he would mostly cut government programs because according to Republicans, government is bad because they are all about free enterprise/free Market and less regulations, etc. The reason our government exists in the first place though is to be a check on power, protect people and to help people in need and also to make sure people have money to live off of when they retire, etc…Do you think a President that is focused on the Corporation’s needs would be looking out for the people’s interest? Romney didn’t as the head of Bain, when jobs were cut, workers laid off, jobs being sent overseas. Even Newt Gingrich knew this about Romney’s business practices which he even spoke out against many times in the Republican debates as well as a documentary knocking him(which I’m sure he doesn’t like to hear about now that he has to back the guy).

The bottom-line….Next time you hear Romney talking about creating jobs just keep this all in mind. Yes he knows how to make money for corporations but at what expense to the American people? The United States was founded as a government of the people, not a government for the corporations.