Wednesday, January 18, 2012

Mitt Romney's Pay-to-Play Plan to Win the White House

Let's face it, Mitt Romney has been running for close to six years to win the White House.  With his initial White House bid in 2008, Romney and his Free and Strong America PAC have been donating to Congressional and Senate candidates in hope of earning their support for his bid for the Oval Office.

The PAC which made no contributions until the 2008 election cycle, has been on a spending spree since.  Since 2008, the Free and Strong America PAC has dolled out $1,363,055 ($231,256 in 2008,  $789,299 in 2010 and $342,500 in 2012) to federal candidates.

Many of those federal Congressional and Senate candidates are now endorsing Mitt Romney in his 2012 bid for Congress.  See the grid below:

Senate Candidates  2008 2010 2012 Total
Sen. Kelly Ayotte (N.H.) $0 $5,000 $2,500 $7,500
Sen. Roy Blunt (Mo.) $0 $9,671 $5,000 $14,671
Sen. Scott Brown (Mass.) $0 $9,000 $10,000 $19,000
Sen. Richard Burr (N.C.) $0 $5,000 $0 $5,000
Sen. Thad Cochran (Miss.) $2,300 $0 $0 $2,300
Sen. Orrin Hatch (Utah) $0 $0 $5,000 $5,000
Sen. John Hoeven (N.D.) $0 $5,000 $2,500 $7,500
Sen. Mark Kirk (Ill.) $0 $6,000 $2,500 $8,500
Sen. John McCain (Ariz.) $0 $5,000 $0 $5,000
Sen. Lisa Murkowski (Alaska) $0 $0 $2,500 $2,500
Christine O'Donnell (Delaware) $0 $5,000 $0 $5,000
Sen. James Risch (Idaho) $2,299 $0 $0 $2,299
Sen. John Thune (S.D.) $0 $0 $0 $0

$4,599 $49,671 $30,000 $84,270

Congressional Candidates 2008 2010 2012 Total
Rep. Rodney Alexander (La.) $4,600 $2,500 $2,000 $9,100
Rep. Mark Amodei (Nev.) $0 $0 $0 $0
Rep. Charles Bass (N.H.) $0 $3,500 $2,000 $5,500
Rep. Judy Biggert (Ill.) $0 $3,500 $0 $3,500
Rep. Brian Bilbray (Calif.) $2,300 $2,500 $2,000 $6,800
Rep. Rob Bishop (Utah) $0 $2,500 $2,000 $4,500
Rep. Diane Black (Tenn.) $0 $5,000 $2,000 $7,000
Rep. Mary Bono Mack (Calif.) $0 $2,500 $2,000 $4,500
Rep. Ken Calvert (Calif.) $0 $1,000 $0 $1,000
Rep. Dave Camp (Mich.) $2,300 $2,500 $2,000 $6,800
Rep. John Campbell (Calif.) $2,300 $0 $2,000 $4,300
Rep. Jason Chaffetz (Utah) $2,300 $2,500 $2,000 $6,800
Rep. Howard Coble (N.C.) $2,300 $2,500 $2,000 $6,800
Rep. Ander Crenshaw (Fla.) $0 $2,500 $2,000 $4,500
Rep. Mario Diaz-Balart (Fla.) $0 $0 $0 $0
Rep. Robert Dold (Ill.) $0 $2,500 $2,000 $4,500
Rep. John Duncan (Tenn.) $0 $2,500 $2,000 $4,500
Rep. Jeff Flake (Ariz.) $0 $2,500 $5,000 $7,500
Rep. Virginia Foxx (N.C.) $2,300 $2,500 $2,000 $6,800
Rep. Jim Gerlach (Pa.) $0 $3,500 $0 $3,500
Rep. Tim Griffin (Ark.) $0 $2,500 $2,000 $4,500
Rep. Michael Grimm (N.Y.) $0 $2,500 $2,000 $4,500
Rep. Nan Hayworth (N.Y.) $0 $2,500 $2,000 $4,500
Rep. Joe Heck (Nev.) $0 $3,633 $2,000 $5,633
Rep. Wally Herger (Calif.) $2,300 $0 $2,000 $4,300
Rep. Bill Huizenga (Mich.) $0 $2,500 $2,000 $4,500
Rep. Darrell Issa (Calif.) $0 $0 $0 $0
Rep. Leonard Lance (N.J.) $2,300 $2,500 $2,000 $6,800
Rep. Jerry Lewis (Calif.) $0 $0 $0 $0
Rep. Billy Long (Mo.) $0 $2,500 $2,000 $4,500
Rep. Cynthia Lummis (Wyo.) $2,300 $2,500 $0 $4,800
Rep. Connie Mack IV (Fla.) $3,965 $2,500 $0 $6,465
Rep. Thaddeus McCotter (Mich.) $0 $3,500 $2,000 $5,500
Rep. Patrick McHenry (N.C.) $0 $0 $0 $0
Rep. Buck McKeon (Calif.) $2,300 $0 $5,000 $7,300
Rep. Cathy McMorris Rodgers (Wash.) $4,600 $0 $0 $4,600
Rep. John Mica (Fla.) $0 $2,500 $0 $2,500
Rep. Jeff Miller (Fla.) $0 $2,500 $0 $2,500
Rep. Jim Renacci (Ohio) $0 $0 $2,000 $2,000
Rep. Phil Roe (Tenn.) $0 $0 $0 $0
Rep. Hal Rogers (Ky.) $0 $2,500 $2,000 $4,500
Rep. Mike Rogers (Ala.) $2,300 $2,500 $2,000 $6,800
Rep. Mike Rogers (Mich.) $0 $2,500 $2,000 $4,500
Rep. Dana Rohrabacher (Calif.) $2,300 $2,500 $2,000 $6,800
Rep. Todd Rokita (Ind.) $0 $0 $2,000 $2,000
Rep. Tom Rooney (Fla.) $2,300 $2,500 $0 $4,800
Rep. Ileana Ros-Lehtinen (Fla.) $0 $2,500 $0 $2,500
Rep. Aaron Schock (Ill.) $0 $2,500 $2,000 $4,500
Rep. Mike Simpson (Idaho) $0 $2,500 $2,000 $4,500
Rep. Lamar Smith (Texas) $2,300 $2,500 $2,000 $6,800
Rep. Michael Turner (Ohio) $0 $0 $0 $0
Rep. Greg Walden (Ore.) $0 $2,500 $0 $2,500
Rep. Ed Whitfield (Ky.) $0 $2,500 $2,000 $4,500

$45,365 $106,133 $76,000 $227,498

Data Source:

It is important to note that no other Republican seeking the 2012 GOP nominee has a PAC that dolled out money, in return for endorsements.  Of all of the leadership PACs found on, no other PACs are found to be linked to any other candidate seeking the 2012 Republican nomination.

Is it legal, yes.  It is questionable, yes.  It fails the smell test in that "you scratch my back, I'll scratch mine" mentality is how game is played in Washington.  And it is time to for this game to end. 

Monday, January 16, 2012

It's Time to Fire Tom Carper

Tom Carper, like former Congressman Mike Castle has spent his entire career on the government payroll.  It is that dependency on the government payroll that has mire Senator Carper's judgement and effectiveness to be a Senator from Delaware.

The first sin Tom Carper has committed is self-limiting himself to serving in public office. Even after earning his MBA from the University of Delaware, Carper skipped the private sector and went to work for the government in the state's economic development office.  A year later, Carper began his thirty-five year in elective office as Delaware's Treasurer.  After three terms as Treasurer, Carper set his sights on Washington DC where he served as Delaware's lone Congressman from 1983 to 1993.  After a ten year stint in our nation's capital Carper returned home to begin Delaware's 78th and 79th Governor.  Eight year's later, Delawareans sent Carper back to Washington where Carper is currently Delaware's senior U.S. Senator.  Clearly you can see that Tom Carper has a dependency on other people's money - and loves living off a government paycheck. 

The second sin Tom Carper has committed his service not to the U.S. Constitution but to his political ideology.  Senator Carper's tenure in Washington has been mired by his first stint in Washington as Congressman.  He has a love affair with spending and growing our nation's government.  From defending Obama Care stating its "provisions that make health insurance more accessible, more affordable, and more dependable" raiding government pensions funds to bail out the U.S. Postal Service Tom Carper is simply out of touch with mainstream America that wants a fiscally responsible federal government.

Why Kevin Wade

Enter Kevin Wade.  Last Monday, Kevin Wade declared his candidacy for U.S. Senate.  Tired of the Delaware Way that Tom Carper has brought to Washington, Kevin Wade has been critical of the dysfunctional manner as to how Carper and governed as Delaware's senior Senator.  In his declaration speech, Wade stated he "would not be standing here today if Tom Carper had done the job he was paid to do.”  And that is telling.

First, Kevin Wade is a business owner of a Christiana, Delaware-based engineering firm.  Like the engineering firm, Wade will find solutions to reigning in the bloated government in Washington that is crippling the American dream for millions.  Unlike Tom Carper, Wade will limit his tenure to only two terms stating that is all that is needed to go to work and come home.  

It is important to note that Wade's engineering firm, Philadelphia Control Systems has survived multiple recessions and operates in the global arena.  And providing solutions has scores of Fortune 500 firms has been the bedrock of its success for over thirty years.  And it is that provision of solutions that Wade will bring to Washington at a time when political divisiveness and rancor has eroded why those sent are sent to serve in the first place.

Second, Kevin Wade is a self-made man.  From humble beginnings, Kevin is the product of self-determination, perseverance and commitment.  Just as the firm he started and built to international acclaim and the family he nurtured, Kevin will go to Washington to restore this nation to greatness.  Kevin's personal faith and determination is one that will guide him to do what is required of him.  His success as Founder and CEO of his engineering firm give him the resume and skill set to seek solutions and not fall trap to the Beltway way of business as usual.

Third, Kevin Wade has a mission to restore America as the shining city upon a hill.  You see, Kevin already has a job, but feels that Washington has failed us.  Those that know Kevin Wade know he is a committed patriot to defending the U.S. Constitution and seeing a government that serves its people and not the other way around.  Kevin has outlined a robust platform of tax reform, energy independence and limited government that will allow America to once again be the bedrock of opportunity, freedom and liberty.

Delaware - it's time to send a servant to Washington.  It's time we send one of us.  It's time we stop being held hostage by career politicians who only care about themselves and next government paycheck.  Take a look at Kevin Wade.  You won't be disappointed.

For more information on Kevin Wade and his platform, visit his web site at:

Why Governor Markell Should Lose in 2012

Earlier today, the Caesar Rodney Institute (CRI) released its new report on the state of the state, and the numbers are pretty damning for Democratic Governor Jack Markell.  Just like the rest of the nation, Delaware's economy is in shambles, schools fail to educate and the state government is bloated by a tax then spend mentality.  

Since Governor Markell's inauguration Delaware has lost at a minimum of 15,000 jobs bringing its unemployment rate down 3.6 percent.  Hiring in Delaware continues to be anemic at best with hiring down -2826, and that is with a smaller workforce.  It is also important to note that this trend mirrors the national economy and blame also belongs to fellow Democratic President Barack Obama who like Governor Markell suffer from perpetual incompetence on running a government.

With the state government being the largest employer, and the financial firms followed behind the headwinds for Delaware look questionable for Delaware.  Delaware's bloated balance sheet continues to drag down its competitiveness amongst better run states like South Carolina and Texas which enjoy employers announcing new start ups or new operations there. The financial sector in Delaware is up in the air with announced bank layoffs hovering over 150,000 nationwide.  What than means for Bank of America (acquired MBNA in 2006 and announced over 40,000 layoffs); Citi (announced layoffs of 4,500); and Barclays (announced layoffs of 2,800) is uncertain.  All three banks have operations centers in Delaware employing thousands.

For Governor Markell who was an executive at Nextel, and Alan Levin (former CEO of Happy Harry's and head of the state's economic development office), Delaware's economic record has been underwhelming.  For two executives to have performed this badly and not being able to sell Delaware as a place to live and do business, this has to be telling of the failed liberal economic philosophy. 

Could it be that Delaware's economy is just to big to attract new businesses?
Could it be that Delaware's business regulations are too toxic for entrepreneurs to risk capital to start their own businesses?

Could it be that Delaware's education system is not educating its students to the risk that businesses don't feel we have an workforce worthy of employing? According to the CRI report, Delaware's public schools, for the dollars spent, are failing to do just that.  High school students are failing to pass basic math, reading and science metrics.  SAT scores are down statewide.  Governor Markell has embraced Race to the Top, but the scores prove its more like race to the bottom.

For Governor Markell who attracted scores of Republicans in his 2008 victory and appointed Republican Alan Levin, why haven't they explored more conservative ideas such as right to work to bring in new employers?  Why did Governor Markell reject Hyundai Motor's request to buy the defunct Newark Chrysler plant because they wanted a right-to-work provision over hiring union labor? 

Political ideology has mired Delaware's economy to be continually anemic for over two decades and it is time it comes to an end.  The current trajectory of stagnant economic growth, high employment, higher government unfunded liabilities and higher taxes is causing Delaware to be as attractive as the fat kid with acne.  Simply put, until Delaware gets its fiscal house in order, educates its students on substance and promotes opportunity over dependence; Delaware will continue to lag behind pro-growth states.

In 2012, We Have Options
Any person who has performed this poorly in the private sector surely would be thrown out on their backside and Delawareans must do the same to Governor Markell.  Maybe it is time Delaware elect an actual business owner likely declared GOP candidate Jeff Cragg who has owned multiple businesses in northern Delaware.  Unlike Markell, Cragg actually believes in free-markets and his businesses continue to weather the storm despite headwinds put in by national and Delaware progressives to turn this nation and this state into a third world banana republic.

The question every Delawarean voter is are you better off today then were on January 20, 2009?  Are you better off today than you were twenty years ago, when the last Republican governor ran Delaware?  

Thursday, January 12, 2012

Why America Needs Rick Perry

No matter where you go - whether a small, rural town or one of America's major cities - America is hurting. America is reeling from the inside out due to lack of leadership and betrayal by those entrusted by voters to keep her on a course for greatness.  Our nation is being shaken to the core due to a failing economy; weathered infrastructure; culture wars and intentional misinformation by others who are profiting on that deception of the American public.

The current American landscape mirrors the same of thirty two years ago.  A nation riddled in high unemployment and meager opportunities for Americans to find jobs to pay the bills; a military gutted by bureaucrats who believed that defending America was wasteful; and weak President who was in way over his head.

In 1980, Americans rushed to the polls and ousted Democratic President Jimmy Carter in favor of a Republican cowboy Ronald Reagan who just happened to be a movie star.   Those that read history know that Reagan ended the economic turmoil and advanced the largest modern economic boom within the last forty years.  Reagan helped end the Cold War and Communism by through strong diplomacy and strength.  Recognizing potential risks, Reagan invested in our military in the event we needed to be engaged but rarely used it.

Fast forward to today and 2012 looks like eerily like 1980.  Unemployment has consistently been over eight percent for the over thirty-six months.  America's business climate is riddled with uncertainty due to the socialist takeover of the health care systems and endless business regulations crippling entrepreneurship and investment.  America's military is being gutted once again based solely on political ideology that defending America is not worth it.  Just as former President Carter failed with Communism in Eastern Europe and Russian , President Obama is failing with rogue Islamic nations threatening the West and American national interests.  Just as Carter failed to deal with a rogue Iran in bring home American hostages, only time has changed and Obama continues to be manipulated by a rogue Iran.  Only now Iran is threatening America with entering the region, and Obama runs for cover.

So who can fix this.  Governor Rick Perry is the only one, and here is why.

Just as Ronald Reagan was derided in 1980 as being too extreme due his refusal to be controlled by the beltway elite, Rick Perry is the same.  Both Reagan and Perry have an affinity for being cowboys and we all know how the 1980 cowboy restored America's greatness.

Putting Americans Back to Work

In all seriousness, Governor Perry is the only unmatched Republican with the resume and results to turn this nation around.  Governor Perry is a thrice-elected Governor of Texas who while President Obama has struggled to create jobs, created 63 percent of all nets jobs since 2009.  Time and time again, Governor Perry has managed to be America's Job Governor.

Just as Governor Perry has done to lead Texas in creating a business climate that attracted firms from other states who felt that Texas was best fitted to help those businesses prosper.  Club for Growth, well-known for scoring political candidates on promoting free-market capitalism scored Governor Perry's 'Cut, Balance and Grow' economic plan as the "best of the best" amongst his 2012 Republican rivals. Forbes has called Perry's flat tax plan as the "most exciting since Ronald Reagan."

Cut, Balance and Grow is a comprehensive plan to cut corporate and personal income tax rates to twenty percent, balance the federal budget and grow the economy based on less regulation.  More info on his plan here.

Making America Energy Independent

Aside from everyday Americans feeling the pinch at the pump, America's inability to be energy independent has caused an enormous strain on its economy.  Consumers have less disposable income due to ethanol subsidies and higher costs of food and goods due to higher transportation costs.  Washington's refusal to approve drilling permits and increase environmental regulations have forced drilling technology once developed and owned by Americans to move to Brazil where they are ramping up oil production.

Governor Perry recognizes that unless America becomes energy independent, we are vulnerable to rogue nations who don't have America's interests at heart.  We can no longer be beholden to the Middle East, Venezuela and Russia.  Perry also recognizes that unless America becomes energy independent, America's economic future will continue to be threatened by rising energy costs due to higher costs of oil coming from foreign sources and this is simply is not sustainable.

Because of this strategic importance, Governor Perry has revealed perhaps one of the boldest and comprehensive energy plans to make America energy independent.  The plan makes domestic energy exploration and eliminating devastating environment regulation a priority.  The plan will put America energy workers idled by Washington bureaucracy back to work.

Overhauling Washington

The third component of Governor Perry's plan is to overhaul Washington to make it relevant, yet inconsequential to those that want to take advantage of pursuing the American dream.  Recognizing that Washington exists due to career politicians who exist due to self-interests, our nations capital has lost its way from the Founding Fathers initial intentions.

Regardless of the branch of government, Washington has grown too big to manage and too selfish to be relevant to the American way of life.  Right now, Washington exists for the benefits of a few and has lost its way to help the common good.

Governor Perry realizes that unless you make Congress part-time so that members can go home to their communities to earn a living, Congress will continue to run amok and devoid of helping it citizens.  Governor Perry realizes that unless you have judicial reform to reign in activist judges, we have no checks and balances between the branches of government.  Governor Perry realizes that unless you cut our federal government to be that necessary to protect the American citizen, our government is wasteful and just in the way.  Governor Perry's overhaul plan reforms all three branches, including the one he wants to manage. 

Trained to Serve.  Trained to Lead.

Rick Perry was exposed to serving others and putting others above oneself at a young age when he entered the Boy Scouts.  You see, Rick Perry has been leading others since he was a young man.  Rick Perry, a proud Eagle Scout credits his Boy Scout experience as giving him the foundation to be an effectual leader and manager.  Today, Rick Perry is Governor of Texas, home to the Boy Scouts of America that gave him his start.

Rick Perry's service to our nation began when entered the United States Air Force after graduation from college.  Commissioned in the Air Force, Perry rose to the rank of Captain and was a C-130 pilot flying missions in the United States, Europe and the Middle East.

Today, Governor Perry is the Commander-in-Chief of the Texas Guard, and has been for the last eleven years.  Governor Perry will not let those that serve in our nation's uniform nor our nation's veterans down.

Defender of Life

Governor Perry as Governor has been a crusader to defending life.  A devout Christian, Governor Perry has signed significant legislation to protect life at all stages.  He signed legislation requiring the use of sonograms before an abortion procedure can be performed.  He signed legislation de-funding the Planned Parenthood of Texas resulting in the shutdown of twelve abortion agencies in Texas.


Governor Rick Perry is the longest serving Governor; the only Governor in this primary to have served in a military uniform; and as is America's job Governor.  Instilled as a young man through his experience in the Boy Scouts, Governor Perry has devoted his life to serving others.  And now he he is being called to lead again.

Given Governor's exhaustive record on job creation, defending life, and limiting the size of government it does not take a genius to realize that Governor Perry is the best qualified to restore America to greatness. His bold plans to put Americans back to work, make America energy independent and overhaul Washington are the product of a resume built on service to his community, his state and his nation.

Let's be honest here, Reagan did not have enough votes to win the 1980 GOP nomination until May 1980, so there is no reason why Governor Perry cannot do the same.  There is no reason to rush to declare a nominee.  The nomination process is no different than interviewing for a job.  In some cases the process can be short, but for jobs of higher responsibility the process requires more in-depth review.

For those of us in the Republican Party who witnessed the 2008 Democratic nomination and coronation of President Obama without adequate review, we know why such an elongated scrutiny and review of candidates is important.  Our nation cannot afford to re-elect President Obama, nor elect a Republican President who also is breezing through the nomination process without adequate scrutiny on his private and public record.

Rest assured, Governor Perry's record has been vetted numerous times.  You don't get re-elected Governor of Texas (or any state for that matter) three times by fooling people.

Why Questioning "Creative Destruction" Is Fair Game

First, lets understand that we are in the middle of a Republican Primary to nominate the GOP challenger to fire Obama.  That being said, one's record is fair game so long as it ties to how one might govern.

Second, just because the Beltway and media elite have anointed their nominee does not meet the gloves have to be off for the duration of the nomination process.  Records matter and are fair game.  Remember, the voters have not spoken.

The backlash by the Washington and media elite towards Newt Gingrich and Rick Perry over their questioning the 'creative destruction' tactics used by Bain Capital under Romney's tenure does the nomination process a huge disservice.  That is why we have primaries - to vet the candidates out to determine who is the most qualified and best positioned to win the election.

Read this commentary by Governor Mike Huckabee over this issue:

Bain Capital

Romney has come under a lot of fire for Bain Capital's investments in some companies that were then scaled down with layoffs to become profitable. That's been demonized thoroughly by the media as corporate raiding, But it's surprising to see so many Republicans embrace that leftwing argument against capitalism. It's terrible for the workers who lose their jobs, and nobody likes to see viable companies looted and destroyed. But if downsizing can turn around a failing company, then at least it prevents all the jobs from being lost, and it sets up a stronger company that can grow and start rehiring. The term for this among people who aren't hostile to capitalism is “creative destruction.” Bad companies have to die to make way for stronger companies, in the same way that old trees fall over to make way for new trees. The other alternative, the Obama way, is to use vast amounts of taxpayer money to prop up companies that are failing in the marketplace. Sometimes, with a big enough cash transfusion, they survive, like GM. Other times, all the money in the world can't stop them from going belly-up and losing all their jobs, like Solyndra. But at least when a company that's bought out by investors goes bankrupt, the money that's lost was voluntarily invested, not taken from taxpayers at gunpoint.
Be sure to tune in Saturday to my Fox News show for a candidate forum from South Carolina and the GOP candidates facing questions from undecided voters in South Carolina.
Sincerely, signature

In pure business terms, Bain Capital is perfectly within the reigns of a capitalist model to acquire funds to fund start-ups (such as Staples and Sports Authority), launch IPOs (such as Blackstone Group) or even finance creative destruction projects such as they did with KB Toys and American Pad & Paper.   Bain Capital and other venture capital firms are also perfectly within the boundaries of venture capitalism to make money on all three of these activities.

So why is this even an issue?

'Creative Destruction' if done by Company A who acquired Company B via a takeover or merger for the sole basis of acquiring accounts or assets  is perfectly within the boundaries of capitalism.  That is survival of the fittest and every free-market capitalist understands that.

When Bain Capital who pools in Wall Street and fat cat money via wealth financiers does creative destruction, they are doing solely for profit and on the backs of everyone involved.  The entire basis of the transaction exists with the intention of gutting the firm firing everyone.  There is no emotion involved in this transaction, and the human capital is discarded.

You see, it will take years of integration and consolidation for Company B to be a shell of what it once was.  Company B most likely could not stand on its own but for the interest of the customers and employees, the firm was acquired.  The most likely gradual layoffs would not be based on others making a profit on the demise of the firm.  The demise of Company B was due to its inability to stand on its own two feet.  The decreased expenditure and most likely higher net income are natural when a company reduces staff to lower human capital expenses.

That is natural.  Profiting from a financial transaction conducted to raid a corporation is not capitalism.  It is profiting on the misery of others!

To further exacerbate the issue of creative destruction, Bain Capital profited from a federal bailout of a Kentucky steel mill during Romney's tenure.  Worldwide Grinding Systems, later renamed GS Technologies after it was acquired by Bain Capital closed its doors ten years after Bain acquired it.  When it did fail, Bain Capital profited from a federal bailout to the tune of $44 million due to the underfunded employee pension system.  The profit Bain netted was $12  million on its initial investment of $8 million and over $4 million in consulting fees. Source here.

Adding insult to injury the bailout came after Bain Capital denied severance and health care benefits that they initial promised when Bain acquired the steel mill in 1993.

Tying it All Together

Those bashing Gingrich and Perry as being unfriendly to capitalism are missing the underlying point of why this issue came up.  How can a Christian, much less compassionate Christian seeking the highest office in the land even advocate such heartless business practices?

 More importantly how can Mitt Romney who as of this writing is leading in national polls and could very well be the Republican nominee challenge President Obama on job creation, when his firm that co-founded adopted 'destructive capitalism' for pure profit as a product?

It's bad enough we have the current President who hates capitalism, we do not need the GOP nominee who profited on the misery of others after they were laid off.

Wednesday, January 11, 2012

Mitt Romney's Bain Capital Problem

With all of the arrows and daggers flying around regarding the Bain Capital business model, it is important to underscore that its entire business is not all bad.  Bain Capital is a venture capitalist firm, a business model that pools large sums of money to either start a business, take a company public via IPO, or in its worst form gut a company for pure profit.

Bain Capital did all three.  To Mitt Romney's credit, Bain helped start Staples.  Today, Staples is a household name as a go to place for office supplies.

In 2007, Bain Capital was very successful to help take Blackstone Group public through a lucrative IPO.

In these two cases, venture capitalism was successful and true to the pure capitalist model.  Firms were either created or allowed to prosper to exchange of funds similar to procuring funds through a bank.

So why does Mitt Romney have a Bain Capital problem? 

American Pad & Paper and KB Toys are a classic example.  American Pad & Paper, owned by Bain Capital, was gutted to the core while Romney was CEO of Bain Capital.  Wages cut, then jobs were cut.  Plants shuttered and towns once proud became ghost towns.

With KB Toys, Bain loaded KB Toys with debt and then used to debt to buy Bain Capital stock for profit.  KB Toys is no longer.

The difference between pure capitalism where businesses are allowed to start, grow, prosper and fail is that leveraged buyouts and corporate raids - a legal, but questionable practice by venture capitalist firms to maximize return on investment (ROI) for the firm and its investors.

Let's be clear - raiding a company and gutting it, is not capitalism.  It is corporatism that only benefits the investors of the firm that owns the firm.  Corporate raiding as it in the case of American Pad & Paper is artificial and counter-

Because when Bain Capital raided American Pad & Paper (Ampad) and KB Toys, they were proud of its self-termed "destructive capitalism".

Now that Romney is running for President and crediting his business record as the counter to Obama, it's fair to see that not all is rosy with Mitt Romney.  Too be the compassionate conservative eager to earn votes of conservatives, many of whom lost their jobs in rural America, seems hollow and hypocritical.

Was Romney a successful manager of Bain Capital?  Yes.  But when you want to earn votes saying you will help create jobs, when you helped do the opposite, that rings of pure hypocrisy.  Not to mention the toll on workers and families, as evidenced here.

Remember, the backbone of corporate raiding is greed.  And contrary to Gordon Gekko, greed is NOT good.