Archive for the ‘facts and myths’ Category

IS PRIVATE EQUITY THE RIGHT JOB CREATION TRAINING FOR A PRESIDENT?

Thursday, May 31st, 2012

There have been repeated public assertions by Mitt Romney in the past few months and by his campaign recently, that successful experience in leading a private equity firm is a very good indicator of ability to create jobs once elected as President. That this is a misleading conclusion has been pointed out of late. A recent article in the NY Times by Ashley Parker states “the driving force of private equity is to create profits for investors, and while job creation may be a happy byproduct of corporate turnarounds, it is never the stated goal, and jobs cuts are [also]very often a consequence”.1 In a recent oped piece, Steven Rattner claimed that President Obama set the right tone on this argument and ongoing very public discussion in his statement on 5/21/12. Rattner pointed out Mr. Obama emphasized that he wasn’t attacking private equity, but was questioning Mitt Romney’s Bain Capital credentials to be job-creator-in-chief. Mr. Rattner further stated that, in his opinion, “adding jobs was never Mitt Romney’s private sector agenda, and it’s appropriate to question his ability to do so”2

IPPA feels that managerial skills, such as running a private equity company, may not be the most important qualification to be a successful president. Just as important and perhaps more so would be the humaneness, experience and wisdom required to understand the sacrifices and needs as well and the policies that will be necessary to support all segments of our population; the underprivileged and the middle class as well as the most financially successful among us.

Notes:
1. Parker, Ashley, Both Campaigns Seize on Romney’s Years at Bain. NY Times 5/25/12
2. Rattner, Steven, Tall Tales About Private Equity. oped NYTimes, 5/22/12

FACTS and MYTHS: The GOVERNMENT BAILOUT OF THE AUTO COMPANIES-NECESSARY and SUCCESSFUL

Thursday, March 8th, 2012

An enduring debate in our country concerns whether or not the central government has any positive role to play in the life of corporations. Much has already been written about the deregulation of businesses starting around 1980, symbolized by the repeal of parts of the Glass-Steagall Act that separated investment and commercial banking, in 1999. The new documentary, “Heist: Who Stole the American Dream?” provides a summary of the evidence that government regulation of business is central to the flourishing of democracy.  Recently, Mitt Romney has criticized the government role in saving the Detroit auto companies from total liquidation, by saying that no government infusion of money was needed. On the contrary, the following blog argues that the federal bailout was necessary and successful, another example of one of government’s positive roles. (more…)