Obama Asks Romney Since When Have You Been Tough on China?

Oct 01 2012 Published by under Featured News


Mitt Romney has been saying things that aren’t very true again. This time, he’s claiming that he would be tough on China, but when Romney led Bain Capital, they invested in a Chinese company called Global Tech, which relied on American outsourcing for its success.

Even though Global Tech promoted its practices of exploiting low-wage labor, Romney and Bain saw Global Tech as a good investment. Tough on China? Not if there’s money to be made for Mitt and his friends. Perhaps Mitt meant tough on Chinese labor, after he sends the rest of our jobs overseas. He was super excited about Chinese laborers, who “were working, working, working, as hard as they could, at rates of roughly 50 cents an hour.” See, now that makes sense.

Watch Obama for America’s new ad, “Since When” here:

VOICE OVER:

These appliances could have been made here in America.

But a company called Global Tech maximized profits by paying its workers next to nothing…under sweatshop conditions…in China.

When Mitt Romney led Bain, they saw Global Tech…as a good investment….even knowing that the firm promoted its practice of exploiting low-wage labor to its investors.

Mitt Romney, tough on China?

Since when?

And now for the brutal facts (work your way through to the 50 cents an hour jobs at which they “were working, working, working as hard as they could” and remember, this could be you):

CHINA-BASED GLOBAL-TECH APPLIANCES PROMOTED ITSELF TO INVESTORS AS A LOW-WAGE FIRM

China-Based Global-Tech Appliances Promoted Itself To Investors As A “Low-Wage, Low-Tax Firm,” Which Used “Inexpensive Labor” “Less than two weeks before an investment firm controlled by Mitt Romney decided to invest in a China-based home appliance company, the company put out a detailed document to investors promoting itself as a low-wage, low-tax firm that would not be subject to taxes in the United States. It used ‘inexpensive labor,’ Global-Tech Appliances wrote in a prospectus meant to attract investors on April 8, 1998.” [Boston Globe, 9/25/12]

GLOBAL-TECH’S BUSINESS STRATEGY TO ACHIEVE INCREASED PROFITABILITY RELIED ON INEXPENSIVE LABOR

Global-Tech Relied On “Low Cost Manufacturing” With The “Use Of Inexpensive Labor” To Help Achieve Its Business Strategy Of “Increased Profitability.” “The Company’s business strategy is to achieve growth, market share gains, and increased profitability by helping its customers meet the stringent requirements of mass merchandisers and market retailers. The key elements of the Company’s business strategy are: …Vertically Integrated, Low Cost Manufacturing. The Company operates two vertically integrated manufacturing facilities in China. The Company has made a significant investment, and continues to invest, in sophisticated machinery for creating the tooling and components used in the manufacturing process. This machinery, along with the use of inexpensive labor, enables the Company to efficiently produce many of its components and to assemble the components to create finished products.” [Global-Tech Appliances Inc. Prospectus, 4/8/98]

ROMNEY RECALLED VISITING THE FACTORY IN CHINA WHERE WORKERS MAKING “BREAD MAKERS AND MIXERS AND SO FORTH” WERE PAID ROUGHLY 50 CENTS AN HOUR

2/11/98: Romney Told Of Visiting A Factory In China Where The Workers Made “Bread Makers And Mixers And So Forth” For Roughly 50 Cents An Hour. Romney at a panel discussion on February 11, 1998: “I just came back from a trip to China, and I went to a factory of 5,000 workers making bread makers and mixers and so forth. And 5,000 Chinese, all graduated from high school, 18 to 24 years old, were working, working, working, as hard as they could, at rates of roughly 50 cents an hour.” [Boston Globe, 3/1/98]

· Global-Tech Appliances Manufactured All Of Its Products In China Including “Breadmakers And Coffee Makers.” “The Company: Global-Tech Appliances is a designer and manufacturer of small, household appliances. The company’s products, all of which are manufactured in The People’s Republic of China, are sold under brand names such as Sunbeam, Oster, Mr. Coffee, Vidal Sassoon, Revlon, Hamilton Beach, Proctor-Silex, Moulinex, Krups and Welbilt. The company manufactures over 160 different models, primarily in four product categories: kitchen appliances such as breadmakers and coffeemakers, personal, beauty and health-care products such as hair dryers and curling irons. The company has achieved growth by emphasizing original design manufacturing rather than contract manufacturing.” [IPO Reporter, 5/11/1998]

GLOBAL-TECH SPENT JUST $126.44 PER WORKER FOR HOUSING, MEDICAL CARE, AND SUBSIDIZED MEALS FOR THE YEAR COVERING APRIL 1, 1998 TO MARCH 31, 1999

Global-Tech Provided “Housing, Medical Care And Subsidized Meals To All Factory Employees,” Paying $396,000 For The Year Ended March 31, 1999. “The Company provides housing, medical care and subsidized meals to all factory employees. The aggregate amounts incurred by the Company for such benefits were approximately $396,000, $525,000 and $546,000 during the years ended March 31, 1999, 2000 and 2001, respectively.” [Global Tech Appliances, SEC Form 20-F, filed 10/1/01]

Global-Tech Employed 3,132 People As Of March 31, 1999. “At March 31, 1999, 2000 and 2001, we employed 3,132, 4,538 and 4,484 persons, respectively, on a full-time basis.” [Global Tech Appliances, SEC Form 20-F, filed 10/1/01]

CHINA-BASED GLOBAL-TECH APPLIANCES PROMOTED ITSELF TO INVESTORS AS A LOW-WAGE FIRM JUST DAYS BEFORE A BAIN CAPITAL AFFILIATED FUND INVESTED MILLIONS IN THE COMPANY

China-Based Global-Tech Appliances Promoted Itself To Investors As A “Low-Wage, Low-Tax Firm,” Which Used “Inexpensive Labor” “Less than two weeks before an investment firm controlled by Mitt Romney decided to invest in a China-based home appliance company, the company put out a detailed document to investors promoting itself as a low-wage, low-tax firm that would not be subject to taxes in the United States. It used ‘inexpensive labor,’ Global-Tech Appliances wrote in a prospectus meant to attract investors on April 8, 1998.” [Boston Globe, 9/25/12]

· 4/17/98: Nine Days After The Document Was Released, A Bain Capital Affiliate – Brookside Capital – Purchased 6% Of Global Tech And Romney Was Listed As The “Sole Shareholder, Sole Director, President And Chief Executive Officer Of Brookside Inc.” “Nine days after the document was released – on April 17, 1998 — an affiliate of Bain Capital called Brookside Capital Partners Fund acquired about 6 percent of Global Tech, according to Securities and Exchange Commission documents that were first reported by Mother Jones magazine. Romney was listed as the ‘sole shareholder, sole director, President and Chief Executive Officer of Brookside Inc. and thus is the controlling person of Brookside Inc.'” [Boston Globe, 9/25/12]

Boston Globe: “When Romney Was In Charge Of Bain Capital, For Example, The Firm Invested Millions In … A Chinese Company Called Global Tech Appliances Inc., Which Manufactured Washing Machines And Other Products At Chinese Factories To Export To US Consumers.” [Boston Globe, 9/15/12]

· 4/17/98: Brookside Capital Partners Fund, L.P. Reported Holding 748,000 Shares Of The Common Stock Outstanding Of Global-Tech Appliances, Inc. Which Had A Closing Stock Price Of $19.50 For A Total Investment Value Of $14,586,000. [Global-Tech Appliances Inc, SEC Schedule 13G, 4/17/98; NASDAQ:GAI, Historical Stock Price, Yahoo Finance, accessed 9/27/12]

So now you know. When Romney says he’s going to be tough on China, he means tough on Chinese labor as he ships our jobs overseas for the MONEY.

Don’t hate Mitt Romney because he’s good at shutting down human emotions in order to make MONEY. Just don’t think that he will suddenly change when he takes office. They know better in Massachusetts, where Mitt Romney currently trails Obama by 28 points:

“A poll conducted by WBUR and MassInc from September 26 to 28 has the race as 60-32 for Obama in Massachusetts, while a just released Globe poll puts it at Obama 57, Romney 30.” Romney’s unfavorability rose in Massachusetts as well, and it’s now hovering at 59-60. Why? Because the more they see of Romney on the national trail, the more they are reminded of how he governed.

Working, working, working for 50 cents an hour! Don’t let this happen to you.

“Since When” will air in New Hampshire, Virginia, Florida, Ohio, Iowa, Colorado, Nevada.

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