Mitt Romney’s Bain record: Creating “Value” doesn’t equal creating JOBS

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.

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About John Hlinko

John Hlinko is a frequent political pundit on TV, and the founder of Left Action, a network of over 1 million activists. He is also the author of, "Share, Retweet, Repeat: Get Your Message Read and Spread," ranked by Amazon.com as the # 1 "hot new release" in web marketing in early 2012. Follow him on Twitter and Facebook
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One Response to Mitt Romney’s Bain record: Creating “Value” doesn’t equal creating JOBS

  1. Paulhaider74 says:

    Pain Capital fired exponentially more people than it ever hired, and Mittwit Romney has been more of a job-eliminator than a job-creator. The only thing that Romney has consistently created is pain for the former employees of the companies that Bain destroyed in order to make a profit for themselves. Whether it is either vulture capitalism or casino capitalism that Romney has used, it is a predatory business practice that creates pain and suffering for many and wealth for a few.
    Paul Haider, Chicago

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