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All Da King's Men

Booker Lets Truth Slip

By David King Published: May 21, 2012

You've probably seen the stupid Obama campaign ads that blame Mitt Romney for the bankruptcy of GST Steel, a company that was run by Romney's Bain Capital group. The ads don't bother to mention that GST Steel went bankrupt two years after Romney left Bain, or that steel companies were dropping like flies at the time, or all the successful Bain businesses that blossomed during Romney's tenure, or the overall impressive record of success of Bain. You don't hear any of that, because those truths are inconvenient to Obama's re-election strategy.

In spite of the false perception left by these friends of Obama ads, what I find interesting about them is the way they demonize private investment capital. It's as if Obama's friends believe that if Bain invests private capital in a business, and the business ultimately doesn't work out (even if the failure comes eight years later, as was the case with GST Steel), some kind of sin has been committed by the "evil" investors. This is an incredibly simple-minded and fantasy-driven way to view business. The truth is, MOST business ventures don't work out. There is substantial risk involved with investing in a business. 2005 information from the U.S. Bureau Of Labor Statistics reveals that only 44% of new businesses are still operating after four years. When investors invest in a business, odds are they are going to lose their money. Bain Capital lost it's investment many times over the years.  That's the nature of the game, but Bain also had a string of successes, and that's where Bain made most of it's money. Take Staples, for instance. When Bain acquired the office supply retailer in 1986, Staples had one store. By 2011, Staples grew to over 2,000 stores. That's where jobs come from, but I bet you won't hear about Staples in any Obama ads. Instead, you'll hear about how Romney is a vampire capitalist who strip mines companies, even though it's hogwash.

Even fellow Democrats know it's hogwash. Here's what Newark Mayor Corey Booker said on Meet The Press yesterday:

Mr. Booker, speaking on the NBC program “Meet the Press,” made his comments in response to a television advertisement the president’s campaign unveiled last week. It portrays Mr. Romney, the presumptive Republican presidential nominee, as someone who eliminated jobs for the sake of profits during his years running Bain Capital.

“I have to just say, from a very personal level, I’m not about to sit here and indict private equity,” Mr. Booker said. “To me, it’s just we’re getting to a ridiculous point in America, especially that I know I live in a state where pension funds, unions and other people are investing in companies like Bain Capital. If you look at the totality of Bain Capital’s record, they’ve done a lot to support businesses, to grow businesses. And this to me, I’m very uncomfortable with.”

After the above statement, many liberals acted like Booker, an Obama supporter, had committed treason, even though all he really did was tell the truth. Apparently, the truth is off limits in modern political campaigns, and later the same day, Booker, looking like a hostage,  had to "clarify" his comments (dishonestly attacking Romney is okay after all !)

As for my opinion, demonizing private investment capital is about the last thing I would do, because that's where our jobs come from. Instead of demonizing these guys who risk their money to create our jobs, we should be giving them medals. I'd much rather have private investors risking their own money than President Obama risking taxpayer money with ideologically-driven boondoggles like Solyndra. Has anyone found Obama's business degree yet ? At least Romney has one.

Even Romney's detractors admit Romney  was fabulous at doing his job, which was to make a profit for his company (note to liberals - the object of a business is not to create jobs, it is to turn a profit. The jobs are the side benefit of profits). I guess we'll have to settle for liberals saying Romney was successful at Bain, though I'm sure they will correct that truth shortly.



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