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Saturday, June 23, 2012

Governor Romney and the Giant Sucking Sound

http://www.washingtonpost.com/business/economy/romneys-bain-capital-invested-in-companies-that-moved-jobs-overseas/2012/06/21/gJQAsD9ptV_story.html?wpisrc=nl_politics

Governor Romney has a hypocrisy problem. "Outsourcing".

US Business man Ross Perot created the image of a giant sucking sound of jobs leaving the country if the North American Trade Agreement was ratified. Governor Romney appears to have turned on the vacuum cleaner after the NAFTA passed, according to a damaging Washington Post article. It's called outsourcing.

"The 'giant sucking sound' was United States Presidential candidate and rich business man Ross Perot's colorful phrase for what he believed would be the negative effects of the (NAFTA), which he opposed." http://en.wikipedia.org/wiki/Giant_sucking_sound

"During the nearly 15 years that Romney was actively involved in running Bain, a private equity firm that he founded, it owned companies that were pioneers in the practice of shipping work from the United States to overseas call centers and factories making computer components, according to filings with the Securities and Exchange Commission." (Washington Post)

Regardless of whether or not NAFTA was inevitable, the political reality reflects on the hypocrisy of Romney's key campaign argument. He wants to bring jobs to Americans - many of them are the ones Bain Capital outsourced away.

Romney doesn't say how he'll bring jobs to the 8 percent of Americans who are unemployed. Now, he must defend why his wealth earned from founding Bain Capital contributed to American unemployment number.

My hypotheses: If elected, Romney will bring jobs back to Americans by breaking the back of the minimum wage laws.

Bain's money making strategy wasn't "rocket science". Just take business out of America, where the cost of employees are expensive, and put the related jobs in cheaper places. If the US unemployment rate is the temperature of the political campaign, then all Romney needs to bring down the fever is to reduce the cost of doing business at home. In other words, cut the cost of hiring people.

American voters must understand how venture capitalists make money. Like Bain Capital, venture investors receive profits from margins made by companies where the costs are slashed to provide a return on investment. The best way to create these quick and efficient profits is to cut the cost of hiring people. To bring these jobs back, the cost of hiring people will have to be reduced - cuts to minimum wage, benefits, health care costs and retirement (Social Security).

We now know Ross Perot was correct when he described the giant sucking sound of jobs leaving the US when NAFTA passed. Bain Capital and other entrepreneurs sucked the profits to their investors.

Governor Romney clearly participated in and benefited from the giant sucking sound. Let's not reward him for the hypocrisy he is trying to sell to American voters by electing him and his rich cronies to control the cost of hard earned middle class benefits.

We need a giant sucking sound to bring outsourced jobs back home. Americans certainly don't want to give me credit for proving my hypotheses.

Let's elect a President who supports our nation's economy by investing in our middle class and requiring the super rich to pay their fair share of taxes.

President Obama has the vision our nation's economy needs to reverse the giant sucking sound.








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