Again, if Bain Capital is his rationale for being President of the country during a tenuous recovery, Romney should be challenged on the relevancy of that experience to the American employment picture:
While economists debate whether the massive outsourcing of American jobs over the last generation was inevitable, Romney in recent months has lamented the toll it’s taken on the U.S. economy. He has repeatedly pledged he would protect American employment by getting tough on China.
“They’ve been able to put American businesses out of business and kill American jobs,” he told workers at a Toledo fence factory in February. “If I’m president of the United States, that’s going to end.”
Speaking at a metalworking factory in Cincinnati last week, Romney cited his experience as a businessman, saying he knows what it would take to bring employers back to the United States. “For me it’s all about good jobs for the American people and a bright and prosperous future,” he said.
Campaign officials have said it is unfair to criticize Romney for investments made by Bain after he left the firm but did not address those made on his watch. In response to detailed questions about outsourcing investments, Bain spokesman Alex Stanton said, “Bain Capital’s business model has always been to build great companies and improve their operations. We have helped the 350 companies in which we have invested, which include over 100 start-up businesses, produce $80 billion of revenue growth in the United States while growing their revenues well over twice as fast as both the S&P and the U.S. economy over the last 28 years.”
The folks still with Bain Capital are honest about their record: they make money by shearing labor costs. Bain’s business model is more often than not dependent on layoffs, benefit cuts, outsourcing/off-shoring. That’s simple. The President never has begrudged them that or intimated that it was illegal or immoral to do. He’s been clear that Bain’s purpose wasn’t job creation for Americans, it was profits for investors:
And let’s take a look at the record specifically of Bain Capital, which Romney owned from 1992 to 2001.
• 1988: Bain put $10 million down to buy Stage Stores, and in the mid-’90s took it public, collecting $184 million from stock offerings. Stage filed for bankruptcy in 2000.
• 1992: Bain bought American Pad & Paper, investing $5 million, and collected $107 million from dividends. The business filed for bankruptcy in 2000.
• 1993: Bain invested $25 million when buying GS Industries, and received $58 million from dividends. GS filed for bankruptcy in 2001.
• 1994: Bain put $27 million down to buy medical equipment maker Dade Behring. Dade borrowed $230 million to buy some of its shares. Dade went bankrupt in 2002.
• 1997: Bain invested $41 million when buying Details, and collected at least $70 million from stock offerings. The company filed for bankruptcy in 2003.
Romney owned 100 percent of Bain Capital making him involved in all these deals, which represented more than 20 percent of the money Bain made from its investment funds between 1987 and 1995. Bain’s focus during all this time was leveraged buyouts, and it had not made venture investments since its earliest days.
Romney says he will get jobs back because he knows why companies send jobs overseas and that’s because he used to buy companies and build strategy for them which included outsourcing. That’s like saying you can stop heroin abuse because you know why people get addicted to it and you used to teach people how to shoot it in their veins. Regardless, Bain Capital is sending in the big guns to Romney’s donor, VP vetting retreat in Park City, Utah this weekend. But, according to Cory Booker, Harold Ford, Ed Rendell and others: no one should talk about Romney’s experience working for Bain except for Mitt Romney, it’s too negative. That’s a foolish generality. Romney spent most of his adult life at Bain prior to politics. It’s his rationale for why he can fix the economy. He made it the centerpiece of Romney 2012, he should have to defend it and if Obama doesn’t make him defend it, then he is committing campaign malpractice.