The Bain Approach

Mitt Romney has asserted that his experience with Bain Capital would provide him with the skill and technique to turn around the country’s economic difficulties.  Looking closely at how Romney made his millions at Bain one might think that he is suggestion that the United States should buy a troubled country, such as Ireland.  Of course, the U.S. would only put up ten percent of the purchase price with the balance financed by various lending institutions.  The U.S.  would take over the management of the country of Ireland and for that effort, charge a billion dollar management fee.  In addition to the management fee, of course, Ireland would also have to make the principle and interest payments on the debt used for the purchase and because the country would be unable to do so, Ireland would have to outsource all workers who would normally receive a paycheck for their labors to a low-cost country such as Laos.  When eliminating all of the jobs in Ireland did not lower operating costs to be sufficiently lowered to make the payments on the purchase loan, the U.S. would then put Ireland into bankruptcy but before doing so, would use funds set aside for worker retirement and other benefits went to pay the U.S. “management fees”.   When all is done, the U.S. could liquidate the country of Ireland with the proceeds of liquidation going to the U.S. Treasury to reduce the U.S. debt.  This is the Bain approach to competent governing.  Will it work?  Do we really want to find out?  When governor, Romney took Massachusetts from 36^th to 47^th in job creation.  As we have seen, the Republican policies of lower taxes and less regulation under the Bush administration has resulted in the worst record of job creation since World War II.  Will the results of even more tax cuts and even fewer regulations do anything better.  Will the Bain approach reduce the country’s deficit?  Is there any possibility that Romney will be better for our economy?  Who actually believes he would?  No one, not a single person, with an AGI under $250,000 would benefit from Romney’s economic policies, plans, or proposals.  Will the “Bain Method” work for the United States? Can we afford to find out?  Only if your AGI exceeds $250,000 annually should you consider trying.