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Is this an example of Romney being a "job creator"?
http://thinkprogress.org/economy/2012/01/06/399117...
How Romney’s Firm Drove Steel Plant Into Bankruptcy, But Still Profited Thanks To Federal Bailout
By Travis Waldron on Jan 6, 2012 at 10:56 am
A Missouri steel company in which former Massachusetts Gov. Mitt Romney’s (R) Bain Capital was the majority shareholder went bankrupt, laid off more than 750 workers, and had to turn to the federal government for a bailout of its pension funds in 2001, according to a special report from Reuters.
Romney, whose time as CEO of Bain Capital has been a centerpiece of his campaign, as he has criticized President Obama for not having experience in the “real economy,” opposed both the 2008 bank bailouts under President George W. Bush and Obama’s rescue of the auto industry. But when Kansas City’s Worldwide Grinding Systems went belly-up less than a decade after Bain became its majority stakeholder, the company, which had been in operation since 1888, had to turn to a federal insurance agency to bailout its pension program in large part because Bain had “saddled” it with “such a heavy debt load”:
Less than a decade later, the mill was padlocked and some 750 people lost their jobs. Workers were denied the severance pay and health insurance they’d been promised, and their pension benefits were cut by as much as $400 a month.
What’s more, a federal government insurance agency had to pony up $44 million to bail out the company’s underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.
While Romney’s firm benefited from a federal bailout, he has been a vocal critic of such bailouts while on the campaign trail. At different times, Romney both supported and derided the federal bank bailouts, but he most recently referred to the Troubled Asset Relief Program as a “slush fund” that “should be shut down.” When Obama proposed bailing out the auto industry in 2009, a rescue that was ultimately successful, Romney famously criticized the plan in a New York Times editorial titled, “Let Detroit Go Bankrupt.”
And while Bain drove Worldwide Grinding Systems into bankruptcy, it didn’t share in the misery. According to Reuters, Bain made at least $12 million from the investment, and added another $9,000 a year from the company via management consulting fees. Meanwhile, by 1995, the company was carrying debt that amounted to 10 times more than its annual operating income. Six years later, it was bankrupt. “Romney cost me lots and lots of sleepless nights and lots and lots of money,” Ed Stanger, who worked at the plant for more than 30 years, told Reuters.
The Kansas City steel mill isn’t the only chink in Romney’s “job creator” armor. American Pad and Paper (AMPAD), acquired by Bain in 1992, closed two plants, laid off hundreds of workers, and eventually went into bankruptcy. Several companies owned by Bain laid off thousands of workers, even as Bain made handsome profits from its investments — and boosted those profits by abusing offshore tax havens in Bermuda and the Cayman Islands.
Though he left Bain more than a decade ago, Romney is still making millions a year from the firm thanks to a lucrative retirement package. His campaign, meanwhile, finally admitted that its claims that Bain created 100,000 jobs under Romney’s leadership were bogus.
13 Answers
- ?Lv 69 years agoFavorite Answer
I refuse to read that wall of information, or any information from thinkprogress.
But I agree, the dude is bad news.
Source(s): Conservative. - tblbabyLv 69 years ago
Progressives have a bias for the dishonest.
Bain took over companies that were going down. They turned very bad situations into jobs where there would have been none. Some companies failed, but their success rate in what they were actually doing is amazing. Way above average. Over all they were around when many jobs went down, like Doctors are around when many die. Is it the Doctors fault that those people die? Nope, in fact they help increase the odds of living. That's exactly what Romney did for business & he created jobs.
- Zachary GLv 79 years ago
As opposed to what? You remember the Solyndra scandal right? Obama through half a billion dollars into that company and what happened? It went bankrupt and people lost their jobs. But I guess that doesn't register in your mind because Obama can do wrong huh?
It's been reported that Romney has had a 70% success rate at Bain capital which is above average for venture firms.There's a little thing called "capitalism" which allows for failure and success. Were you always told you were "special" by your teachers?
- Anonymous9 years ago
Despite the political and even religious diatribe, most of which is innuendo and false accusations from the undereducated…
It’s still going to be about the economy and who can get the job done!
Romney knows and understands world economics.
In the private sector, for most of his life, he successfully and profitably managed large companies, helped turn around large companies that were sinking and helped other companies get started, saving and creating thousands of jobs, Domino’s Pizza, Sports Authority, and Staples to name just a few of many.
Funny. Half of MA loves what Romney did, the other half hate him, maybe because he left after completing only one term. Maybe he is not a “career” politician, do you always need a “career” politician to get the job done?
Yes, he worked as the MA governor for his entire term for FREE!!! Who else would have done that!?
Yes, during his 4 years as governor MA started out ranked 49th in job creation for half of his term before moving up to 47th in his final year. Not a stellar record to some.
Yet Romney also reduced corporate loopholes and cut state spending in order to cut taxes and increase consumer spending. MA had a huge deficit, about 3 Billion dollars when he started, and he left MA with a 600 million surplus and balanced budget at the end of his term (yes, he raised state “fees”, but still kept them below the national average). He can't help it if the government screwed up after he left.
MA’s super majority Democrat controlled legislature wanted desperately some kind of Universal Health care program. Romney worked with them to create one that would work, similar to mandated auto insurance (most states have such mandates). It is estimated that 98% of the residents are now covered. It was within projected budget (about 1% of the State budget) until Romney left and MA made changes to the program and now it is costing them. Romney believes that states -- not the federal government -- should be free to design their own plans for covering the uninsured if that is what they want to do.
Yes, he compromised on some political issues, again dealing with a super majority Democrat Legislature and Judicial Branch in MA, in order to keep the state government working together and moving forward.
He turned around a struggling 2002 Winter Olympics with millions in debt and made it into one of the most profitable Olympics in history. And only took a $1 dollar salary. Who else would have done that!?
He is against federalization and big government and believes in state’s rights to govern their own affairs.
He believes in marriage between a man and woman, the importance of family, and lives the example.
He is for a strong military and believes the borders should be better protected.
The list of real positives is far greater than the supposed list of negatives.
And the Democrat Party is most afraid of Romney.
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- Mongo KhanLv 69 years ago
Soon the Romney Spin Machine will tell Willard what to say for damage control.
"Hey, that was the KC guys (unknown, unnamed,) that did that. I was in New York, taking care of business. I had no idea what they were doing."
"One day I woke up and there was 10 million dollars under my pillow. I didn't know who put it there. I thought it was the Easter Bunny."
- ?Lv 79 years ago
He has harmed more Americans single-handedly and sent them to poor house than all of the Republican candidates combined together.
- 9 years ago
the man sucks is all i know... and im republican. I dont even care if he is a job creator... creating a job in the private sector doesnt mean you understand the philosophy or role of the government.
