Capital Offense: Romney and Bain
By HHR | January 12th, 2012 | Category: Featured | 3 comments
By Raynard Jackson
I am stunned by all the controversy surrounding presidential candidate Mitt Romney’s time at Bain Capital (the private investment company that he founded). What’s even more amazing is that the controversy was started by Republicans running against him for the presidential nomination.
These Republican candidates have accused Romney of buying several businesses and then laying off or firing employees so he could reduce costs and then turn around and sell the businesses for a profit. Wow, imagine that—a businessman who wants to make a profit.
Now, radical liberals like Al Sharpton and Larwrence O’Donnell, etc. are having a field-day with this issue. The first question you should ask radicals like them is, “how many private sector jobs have you ever created?” I think we all know the answer to this question—none, zero, nada!
Their arguments have absolutely no intellectual underpinning whatsoever. So, allow me to give these radicals a simple lesson in economics. Last year two friends of mine became engaged to be married and ultimately did get married. They both owned their own home. They couldn’t afford to keep both houses, two sets of furniture, etc. So, they decided to sell one of the homes and combined all the items from both houses and got rid of the duplicate or unnecessary furniture (to reduce costs).
So, when companies like Romney’s decides to buy a company, in most cases they have determined that there are inefficiencies that need to be eradicated. Thus, tough, but necessary, decisions have to be made. Why are they necessary, you might ask?
Again, to the radical liberals who have never created a job, lesson two in economics. The first responsibility (legally and morally) of a business owner is to the shareholders or investors; not to the employees! Now, every smart business-owner knows and understands that having happy employees are the keys to making money; therefore no business owner takes joy in having to reduce his workforce. But, in order to provide jobs for the many, you sometimes have to cut jobs for the few.
An entrepreneur starts a business, not to create jobs, but to make money. Every business owner hopes he will have to hire employees. That means there is a growing demand for his product or service; but that is not his raison d’être—making money is.
Legally, management can be taken to court for mismanagement if they do not safeguard the capital of investors. So, be weary of those who think that creating jobs are the reason people start businesses. Here is something else to think about. Have you ever wondered why companies agreed to sell to Romney’s firm (Bain Capital)? This may come as a surprise—but to make a profit!
Romney has absolutely nothing to be ashamed of and there is no need for him to justify his desire to make a profit in his deal-making. If anything, Romney’s experience at Bain Capital proves he is able to make tough decisions without allowing emotions to cloud his judgment. This is a great quality for any strong leader to possess.
This controversy provides a sharp contrast in the fundamental difference between Republicans and Democrats in how they view capitalism. Republicans believe that increasing shareholder value is the primary goal of business ownership. Democrats believe that increasing employee value (i.e. giving them a job) is the primary goal of business ownership.
When you decide to become an employee, you necessarily also decide to put your future in the hands of your employer. There is never any security in anything that you don’t own.
If you are on any government program, they decide the rules of engagement. If you are on welfare, they can mandate you taking a drug test. If your parents allow you to borrow the family car, they can decide what time you have to return the car. If you join the Catholic Church, they decide what your belief system is.
Republicans understand that there is no fundamental right for an employee to have a job; Democrats believe that people have a constitutional right to a job. If Obama and Democrats want this to be one of the key issues during this presidential race; then I say bring it on. Republicans will win this debate any day of the week.
There are many liberals in Congress who want to put restrictions on the buying and selling of private enterprises. To them I say, “this is a Capitol offense.”
Raynard Jackson is president & CEO of Raynard Jackson & Associates, LLC., a D.C.-public relations/government affairs firm. He is a contributing editor for ExcellStyle Magazine (www.excellstyle.com). For those who use skype (www.skype.com), please add him. The name there is: raynard jackson
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What’s more, a federal government insurance
agency had to pony up $44 million to bail out the company’s underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.
http://www.reuters.com/article/2012/01/06/us-campaign-romney-bailout-idUSTRE8050LL20120106
It was a gamble. The old mill, renamed GS Technologies, needed expensive updating, and demand for its products was susceptible to cycles in the mining industry and commodities markets.
Less than a decade later, the mill was padlocked and some 750 people lost their jobs. Workers were denied the severance pay and health insurance they’d been promised, and their pension benefits were cut by as much as $400 (258 pounds) a month.
What’s more, a federal government insurance agency had to pony up $44 million to bail out the company’s underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.
That pure, free market poster-child that supposedly was Bain Capital actually profited handsomely from having the federal government, that is taxpayers, bail out corporate pension plans. This was while Romney was racking up a fortune of more than $200 million.
amerpundit.com/2012/01/09/romneys-bain-got-44-million-bailout-from-federal-government/
How Romney’s Firm Drove Steel Plant Into Bankruptcy, But Still Profited Thanks To Federal Bailout
http://thinkprogress.org/economy/2012/01/06/399117/romney-bain-federal-bailout/
Punk-Joke-ass Negroe, go to HELL:
http://hiphoprepublican.com/feature/2012/01/12/raynard-jackson-capital-offense-romney-and-bain/
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I’ve noticed that Willard Romney spent his Vietnam years doing missionary work in the deep dark temperate rainforests of Paris France.
I also noticed that Willard Romney’s 5-sons were on stage with him as he spouted that the US should not have left Iraq.
Who’s sons are supposed to do all this fighting and dying in Iraq and elsewhere Willard, your son’s or someone else’s? HELL, we already know that answer.
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Thank you Raynard for sharing this very insightful lesson in capitlism. It is an important lesson because unbridled capitalism is what this country was built on. Thus why it was perfectly acceptable to steal the native and indigenous people’s land for your own, commit geonicde of those people, enslave people from another continent (Raynard Jackson’s and my ancestors) to develop capital for you to buy and sell at the lowest cost to produce products and sell at the highest price. Hh yes and even to rape, kill and torture those people because they weren’t considered human just economic value so it was perfectly acceptable to sell them for the highest price. Some “capitlist” so no harm in raping women for the purpose of procrating lighter complexion children so they could sell their own children for a higher price – unbridled capitlism of course has no shame.
It is after all the dollar that rules.
And then when public outcry mad it no long “socially” acceptable to buy and sell human beings for a profit, industries were established to obtain the cheapest labor you could find including children of the underclass – lower class. And by golly those ignorant liberals passed laws so capitalist had to stop working children as young as six years old in dangerous factories where they lost limbs and in some instances lost their lives. All of those unnessary laws and regulations to protect people and the envionrment – socialism at its core stymies innovation and growth so what do the capitalist like Romney do? Well you buy and sell companies and again look for the cheapist labor – that is overseas where you can do all those things that are “socially and legally” unacceptable in the United States – like child labor, unsafe working conditions, destroy the ecology, because after all money rules.
Like Ronald Regan, Mr. Romney is a hero to capitlist like yourself. He works the system just as it should be worked. We are after all a capitlist society where the needs of the masses are of no concern. The only thing that is of concern is the profit.
In my opinion your commentary underscores what Jesus said 2,000 years ago – it is not money that is the root to all evil but the love of it. When you love it more than life – not your life of course but the lives of others – you will do evil things, i.e. destroy the lives of others for a profit. The United States after all is a capitalistic country and we need to go back to the ideals of the founders who committed geonicde and destroyed many lives for the love of money – i.e. making a profit for themselves and to those they were beholding.
Yes it would indeed be a Capitol offense to become a more humane country and consider the quality of life of others – that would slow the growth of mo’money and the exploitation of those losers who have to work for someone else for a living. People who work for someone else should expect to be used as the capitlist or entreprenuer sees fit because after all they are working for them to make them a profit – not to give them a job or improve their standard of life.
Raynard this is a lesson that should be reiterated over and over again to our children from grade school through graduate school. Then they wouldn’t grow up believing they have rights as employees and when they lose jobs or are abused in the work place they wouldn’t file lawsuits or criticisize their employer because after all – their only purpose as an employee is to make a profit for the owner of the business. Some how or another we got it it twisted. We started doing stupid stuff like “occupying” to prove a point that we don’t have. I’m sure your family is very proud of how a Black man has been able to understand that the enslavement and brutality of our ancestors wasn’t personal – it was simple business.
Thank you for untwisting it for me and making it plain.