There’s been a big brouhaha about an ad released by the Obama campaign, one that shows the impact of a company that was acquired by Bain Capital, the company of which Romney was CEO. It was downsized, and then later bankrupted. You can watch it for yourself by clicking right here.
The question is, is this fair? Companies go bankrupt all the time. Can Romney be blamed for the job losses? Well, the answer is… mostly yes.
Look, you can’t expect even the best CEO to hit a grandslam every time. Bain acquired a lot of companies, and not all of them went bankrupt.
But here’s why it’s relevant:
- In acquiring the companies, Bain’s goal was to create value, not to create jobs. In fact, the creation of this value (for an IPO or sale) generally required cutting expenses — including people.
- Now, you could argue that there’s nothing wrong with that. Except that Romney has spent his whole career claiming he’s a job creator.
Many people conflate wealth with jobs. They assume that because Romney is worth over $200 million, money made via business, that he must have created a gazillion jobs in the process. And Romney himself has on occasion claimed to have created over 100,000 jobs via Bain. But that’s a claim he’s backed off on, after Republican challengers challenged it in the process.
The bottom line? During his time at Bain, Romney did a fantastic job making wealthy people wealthier. And he did that at the expense of a whole lot of working-class people.
And that’s exactly what he’d likely do for America.