Skip to main content

Mitt Romney and the crisis of capitalism

The New York Times reports that even when Mitt Romney lost, he won: "The private equity firm, co-founded and run by Mitt Romney, held a majority stake in more than 40 United States-based companies from its inception in 1984 to early 1999, when Mr. Romney left Bain to lead the Salt Lake City Olympics. Of those companies, at least seven eventually filed for bankruptcy while Bain remained involved, or shortly afterward, according to a review by The New York Times. In some instances, hundreds of employees lost their jobs. In most of those cases, however, records and interviews suggest that Bain and its executives still found a way to make money."

The Times adds: "Bain structured deals so that it was difficult for the firm and its executives to ever really lose, even if practically everyone else involved with the company that Bain owned did, including its employees, creditors and even, at times, investors in Bain’s funds."


If there's a crisis of capitalism these days, it's because it's very much a rigged game: The people at the top can't lose, even when their investments go to hell. The people below them can't really win--again, witness the stagnating middle-class wages of the last 30 years--but they can lose. It's not the old days where the shuttering of a factory meant the devastation of the local family that had owned it for 50 years, and so everybody lost together. These days, the Mitt Romneys of the world dust themselves off, count their piles of cash, and move onto the next town. Of course that's going to breed resentment. And if Romney is saying his business acumen is the reason he should be president, then it's absolutely fair game for criticism. 

More to the point: The other day I mentioned Bill Voegeli and his idea that capitalism might be revived if more people--workers--had skin in the game, in terms of compensation tied to the success or failure of their companies. I like that idea, but workers clearly do have skin in the game: When jobs go away, so does their ability to earn a living. Capitalism might also be improved if private equity firms like Bain also had real skin in the game, if they suffered instead of making profits even as the businesses they buy go under in a sea of Bain-generated debt.

Comments

Popular posts from this blog

Yoga

I've been making some life changes lately — trying to use the time I have, now that I'm back in Kansas, to improve my health and lifestyle. Among the changes: More exercise. 30 minutes a day on the treadmill. Doesn't sound like a lot, but some is more than none, and I know from experience that getting overambitious early leads to failure. So. Thirty minutes a day.

One other thing: Yoga, a couple of times a week. It's nothing huge — a 15-minute flexibility routine downloaded from an iPhone app. But I've noticed that I'm increasingly limber.

Tonight, friends, I noticed a piece of trash on the floor. I bent over at the waist and picked it up, and threw it away.

Then I wept. I literally could not remember the last time I'd tried to pick something off the floor without grunting and bracing myself. I just did it.

Small victories, people. Small victories.

Liberals: We're overthinking this. Hillary didn't lose. This is what it should mean.

Interesting:
Nate Cohn of the New York Times estimates that when every vote is tallied, some 63.4 million Americans will have voted for Clinton and 61.2 million for Trump. That means Clinton will have turned out more supporters than any presidential candidate in history except for Obama in 2008 and 2012. And as David Wasserman of Cook Political Report notes, the total vote count—including third party votes—has already crossed 127 million, and will “easily beat” the 129 million total from 2012. The idea that voters stayed home in 2016 because they hated Donald Trump and Hillary Clinton is a myth. We already know the Electoral College can produce undemocratic results, but what we don't know is why — aside from how it serves entrenched interests — it benefits the American people to have their preference for national executive overturned because of archaic rules designed, in part, to protect the institution of slavery. 

A form of choosing the national leader that — as has happened in …

I'm not cutting off my pro-Trump friends

Here and there on Facebook, I've seen a few of my friends declare they no longer wish the friendship of Trump supporters — and vowing to cut them out of their social media lives entirely.

I'm not going to do that.

To cut ourselves off from people who have made what we think was a grievous error in their vote is to give up on persuading them, to give up on understanding why they voted, to give up on understanding them in any but the most cartoonish stereotypes.

As a matter of idealism, cutting off your pro-Trump friends is to give up on democracy. As a matter of tactics, cutting off your pro-Trump friends is to give up on ever again winning in a democratic process.

And as a long-term issues, confining ourselves to echo chambers is part of our national problem.

Don't get me wrong: I expect a Trumpian presidency is a disaster, particularly for people of color. And in total honesty: My own relationships have been tested by this campaign season. There's probably some damage…