Monday, September 24, 2018

Let's Attack Capitalism

by TonyBerkman (editor), Costa Rica, May 28, 2012

Credit: Creative Commons
Mit Romney, 2012 Presidential Election, Obama

A majority of Democratic leaders are giving Obama the message to keep attacking Bain

Some Democratic leaders may have doubts about President Obama's continuous attacks on Bain Capital however the majority want him to keep it up.

Romney "wanted to have this conversation," Pennsylvania's Democratic chairman told the Washington Post. "We’re going to have it.

In what appears to be "riding the wave" of the 1%, who have created more wealth in the U.S. than the 99% combined, there should be no hesitation or equivocation.

Democratic colleagues from Nevada, Ohio, & New Hampshire say voters' anger centers on Wall Street, which could be this election's "bogeyman"—and that makes the strategy a smart and appropriate one, they conclude.

Some rightully are concerned that this message, one that Obama continues to push in new ads may hurt the president among independents -- primarily entrepreneurial oriented ones.

Bain "did a good job for their investors" and has been an example of a highly successful business that contributed to the Gross National Product of the USA and boosted employment. Such a political strategy could backfire on Obama as an image of an anti-business Obama; which given his desire to "take over" private enterprises may not be far from reality.

New Hampshire Sen. Kelly Ayotte says "what you’re doing is trying to demagogue a whole industry that tries to rescue failed companies." That could and should be a major concern in "entrepreneurial" Colorado, said the GOP congressman, as well as the rest of the United States.

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5 comments on Let's Attack Capitalism

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By Anastasia on May 28, 2012 at 08:39 pm

More business bashing.

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By Humble Opinion on May 28, 2012 at 09:13 pm

Let's add some more information to this Romney debate other than just the link to Bain Capital's own web site.

What Bain Capital engaed in was not capitalism, it was corporate raiding. Capitalism is completed when a company produces a tangible product for sale on the open market, sells it's product for a fair profit, and reinvests in it's own company in order to both improve that product and further the company's interest in moving more product.

What Bain Capital does is to buy out both healthy and unhealty companies, companies that represented, good or bad, the sweat, blood and tears of fellow Americans. They leveraged the companies into massive debt, and with that debt, paid themselves hefty 'consulting' fees, and used the remaining debt on the money borrowed against those companies to both inflate the prices of the businesses in order to try to resell them, and to use the money borrowed from the debt to buy up other businesses.

When the companies mentioned above were no longer able to sustain the debt payments orchestrated by Bain Capital themselves, Bain would begin liquidating the assets of the company, beginning with pension plans. When the companies were broke enough, Bain then turned to the government to pay out the pensions of workers on the company they themselves destroyed.

In some cases, they burned the bought up companies so badly that they were forced to close their doors, and the governemnt, hip to the scam by that time, refused to pick up the pension plans, which left the workers broke, destitute and in some cases, homeless.

During the republican primaries, virtually every other candidate, from Gingrich to ron Paul called Mitt Romney's time at Bain 'vulture capitalism'. In other words, Bain was in the business of making money off of the sweat and work of others, but provided no material product of benefit to the country at large.

Sure they helped the bottom line of investors at Bain, but at what cost?

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By Randy Mitchell on May 28, 2012 at 10:08 pm

Obama's entire administration is an attack on Capitalism, a direct war on the core business principles which made America the greatest country in the world. Romney, or any other successful Republican candidate could've made their millions selling lemonade on street corners and the left would still try to find a way to discredit them.

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By TonyBerkman on May 28, 2012 at 11:33 pm

@HumbleOpinion, It's Bains fault that companies could not pay off their debt? That itself is an interesting concept though doesn't warrent discussusion because it lacks an understanding of the free market system.

Oh and liquidating isn't part of the market system either and furthermore a company that facilitates the liquidation doesn't serve a valuable service?

Bain in fact has and does provide far more services than the one you mention though the market system is one where efficient businesses and one's that remain viable stay in business and when they no longer are they go out of business.

I am an advocate of public service and helping those who for whatever reason have fell on difficult times and need some support. However we have all the evidence that we need that despite its imperfections it is far better than the alternative. It is somewhat laughable that people still debate the merits of capitalism v. a centralized run economy given the massive amount of evidence as to it's superiority at supporting people and creating a much more motivated public and a higher quality of life. Though for whatever reason we have become an entitlement society where many have come to believe that you can put in 10% and get back 100% or put in 20% and get back 100%. Life doesn't work like that. The only way to get back 100% is to put in 100%.

A service such as liquidating assets provides more value to the system as it creates a market for otherwise wasted assets.

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By TonyBerkman on May 28, 2012 at 11:34 pm

@ Humble Opinion I am hallucinating that you somehow believe that Centralized Medicine is a capitalistic concept.

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