Romney is a job creator February 1, 2012
opinion on Jan. 16 by Managing Editor G. Michael Dobbs states that Mitt Romney, our former governor and presidential candidate, has a questionable reputation as a job creator.
Nowhere in the article does Mr. Dobbs reference any specifics to Romney’s role as a founder of Bain Capital which in fact did have a record of job creation.
Bain’s business is a combination of private equity forms of investment including growth capital and venture capital. Private equity firms seek to invest in companies for growth that need capital to expand, finance acquisitions or enter new markets. They also look to buy companies that are under performing or undervalued and improve their viability to be competitive.
Concerning job creation by Mr. Romney that is deemed questionable, here are some examples of success stories while Romney was at Bain.
- Staples, business supply stores. Employs 90,000.
- Steel Dynamics, the fifth largest US steel maker used Bain’s investment and now employs 6500 workers.
During Romney’s 14 years at Bain the firm invested in many well known companies including Brooksotne, Domino’s Pizza, Sealy, Sports Authority as well as lesser known companies.
If General Motors had been bought by private equity decades ago they would have been turned around without taxpayer cost. Perhaps the federal government in 2012 needs the expertise of a private equity firm to create jobs. The federal government’s income statement (fiscal year 2011) spent $3.7 trillion and took in only $2.2 trillion in revenues. Deficit $1.5 trillion.
Job woes with high unemployment, underemployment and low growth of gross domestic product are a reality in 2012 in the 30 months since the recession officially ended.
Nearly 1 million people have dropped out of the work force. They aren’t working and they aren’t looking for work according to data from the U.S. Labor Bureau of Labor Statistics. In the past two months the labor force shrank by 170,000.
With the true employment rate closer to 12 percent the reality is we currently don’t have a job creator leading our country.
Editor’s note: People interested in a non-spin assessment of Romney’s job creation figures should read the story at www.washingtonpost.com/blogs/ezra-klein/post/romneys-bain-figures-dont-add-up/2011/08/25/gIQAjKhelP_blog.html