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January 7, 2012

Will Mitt Give Glen Patrick Wells His Pension Back?

-- by Dave Johnson

Mitt Romney got rich at Bain Capital by bankrupting companies and taking the pensions from the workers. Will Mitt give Glen Patrick Wells his pension back?

From David Waldman at Daily Kos, 'Job creation' vs. Romney's locust capitalism, (please read the whole thing - so well worth reading and understanding how this works)

Why is it that so many of the stories of companies bought by Romney at Bain have the same story? They go bust, but Romney makes money. ...

Once it was discovered that "business success" could mean nothing more than getting as many dollars as possible, there was no point in keeping a business that did things open at all. The only business worth having was the one that entitled you to the keys to the bank vaults.

So that's what Mitt Romney built for himself. A corporate safe-cracking engine. Buy a company, put yourself on the board, vote to max out its credit line and award yourself the cash. Then when they're all out of money, you say, "Oh well, company's broke," fire everyone and shut the doors. That's called a "bust-out," if you're a fan of Goodfellas or The Sopranos ... People who control and plunder companies through secret, off-the-books loans are "legitimate businessmen" (in the old movie gangster parlance). People who control and plunder companies through regular loans are legitimate businessmen. Even if the intent was always to bust it out. You just can't say so in open court..

This business model was enabled by Reagan's tax cuts on the rich. Before those tax cuts it took time to make a fortune. You carefully built a solid company with a good reputation, good products or services, treated workers well so they stuck around, treated customers well so they kept doing business with you. And over time you got rich.

Businesses like these needed solid, healthy communities around them, with good infrastructure and good schools. This supposed the business.

Then Reagan changed things, and forced a change in business models. Suddenly you could make and keep a fortune with a single business deal. This forced quick-buck, get-rich-quick schemes as business models. Predatory capitalism became the best way to make your money.

And who needed to pay for good schools, good infrastructure, etc? You weren't going to be sticking around anyway and you certainly didn't care if the losers had good schools or bridges. That's their problem, not yours.

It made sense to sell the farm instead of planting crops.

Posted by Dave Johnson at January 7, 2012 10:57 AM


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