Mitt Romney has finally come out yesterday and announced his exploratory committee for President of the United States. What would the economy look like after 4 years of his administration? Well, all we have to do is look into his personal business. As CEO of Baine Capital, he oversaw the buy-outs of many American companies, busted them up and sold off pieces of them for profit. He also took many companies and sent them to China and other low wage countries.
According to the Los Angeles Times-From 1984 until 1999, Romney led Bain Capital, a Boston-based private equity group that earned jaw-dropping profits through leveraged buyouts, debt hedge funds, offshore tax havens and other financial strategies. In some cases, Romney’s team closed U.S. factories, causing hundreds of layoffs, or pocketed huge fees shortly before companies collapsed. During Romney’s tenure he only cared about the bottom line of Bain Capital, if it destroyed communities, it wasn’t his problem.
“They’re whitewashing his career now,” said Marc B. Wolpow, a former managing director at Bain Capital who opposes Romney’s White House bid. “We had a scheme where the rich got richer. I did it, and I feel good about it. But I’m not planning to run for office.”
The United States’ middle class can not afford any more factories, manufacturing companies or telecommunication companies sending their labor offshore. From 2000-2010 the United States has lost over 50K factories to low wage countries.
Do you believe a Romney Administration would put forward or enforce a rule called “Buy American” for our infrastructure projects, as I pointed out Obama did in a previous post?
On top of pushing more and more of our factories offshore, he helped investors find a way not to invest in America. According another LA times report- While in private business, Mitt Romney utilized shell companies in two offshore tax havens to help eligible investors avoid paying U.S. taxes, federal and state records show. Romney gained no personal tax benefit from the legal operations in Bermuda and the Cayman Islands. But aides to the Republican presidential hopeful and former colleagues acknowledged that the tax-friendly jurisdictions helped attract billions of additional investment dollars to Romney’s former company, Bain Capital, and thus boosted profits for Romney and his partners.
So let’s take a look at candidate Romney,
He believes he can do a better job with the economy, yet he advocated in the private sector to outsource American jobs to low wage countries.
Here are some of the companies he has destroyed and families who have suffered.
– In 1992, the firm acquired American Pad & Paper. By 1999, the year Romney left Bain, two American plants were closed, 385 jobs had been cut and the company was $392 million in debt. The next year, Ampad was forced into bankruptcy.
– Bain Capital and Goldman Sachs bought Dade International for about $450 million in 1994. The firm quickly fired or relocated at least 900 workers. Over the next several years, it sunk increasingly into debt and laid off 1,000 workers. In 2002 — after Romney had left Bain — it filed for Chapter 11 bankruptcy protection.
– A 1997 buyout of LIVE Entertainment for $150 million resulted in 40 layoffs, roughly one in four of the company’s 166 workers. The job cuts affected all aspects of the company, from production and acquisition to legal and public relations.
– In 1997, Bain bought a stake in DDI Corp., a maker of electronic circuit boards. Three years later, Bain took the company public and collected a $36 million payout. But by August 2003, the company filed for bankruptcy protection, laying off more than 2,100 workers.
He wants to be the leader of this country, yet while in the private sector he helped wealthy investors find a way not to invest in education or the infrastructure of our country.
This country needs a leader that will stand for a living wage and American jobs, not a CEO looking to bolster a bottom line at the peril of the American standard of living.