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Was Mitt Romney & Bain on the up & up?
I hear the term creative destruction which to my knowledge means investing in a company which may fail & lose jobs. But should the company also be able to make a profit when that happens? Now I don't know if that happened at Bain Cap. But shouldn't we find out if they did make profits off failing businesses?
@JoeBorzaya you make some great points. On the 2nd to last paragraph you state how a company(Bain) can save a business while maybe shedding a few jobs. As opposed to the business going completely out. In the first scenario he should make all the profit he can get(he turned a failing biz & atleast saved it). But should he make a profit in the 2nd scenario, in which the whole biz fails & all the jobs are lost?
@Warren T I understand in business there are winners & losers, successes & failures. And you should be rewarded very handsomely for your winning/successes. BUT should you also get rewarded for your losses/failures?
6 Answers
- SharonLv 69 years agoFavorite Answer
One of the ways money is made off a failing business was done to my high school, which was privately owned. The founders either died off or retired, and it was sold to a consortium that ultimately bought at least seven private schools and two military academies. In every case they took out mortgages on the properties for millions of dollars, then deliberately ran the schools into the ground. They walked off with better than seven million per partner, and the banks had a bunch of properties no one wanted.
From what I've read, Bain did something similar
- Anonymous9 years ago
As far as I know, businesses hire Bain Capital to make them profitable or more profitable. Sometimes this includes selling off or closing portions of the businesses that are not as profitable or even losing money. In the process some people will lose their jobs but others will save their jobs. Employees are the most costly part of overhead for any business.
There are some cases where businesses are too far gone to be saved but Bain tries anyway. In these cases Bain still makes money (I think) because they still have to do the work.
Frequently the business is saved but some people lose their jobs. IMHO this is better than the business going under and everyone loses their job.
But think about it - businesses are in business to make money, not to give people jobs. In the process people get jobs. Otherwise it would be a charity.
- Anonymous9 years ago
A lot of money has been made by Romney and others off purchasing failing businesses. In the process Ro
Net has saved many failing companies while creating or saving thousands of jobs. Obama hasn't  saved or created a single job.
- GnosisquestLv 69 years ago
No they were social leeches fleecing corporations which were in trouble with the pretense of doing something good.
I talked to a person at Staples about the time they were being "rescued" and such a rescue is what all workers fear!
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- ?Lv 79 years ago
Romney being CEO, of Bain Capital, is a lot like him being the brain child, of socialized health care... He's doing all he can, to put the best face on it, he can... But it's sill, one of those scenarios of, being what it is... A flip flop.... In other words, it is, what it wasn't....
- Warren TLv 79 years ago
BAIN CAPITAL WAS COMPANY THAT INVESTED IN BUSINESSES. LIKE ALL BUSINESS LIKE THAT THEY HAD WINNER AND THEY HAD LOSERS. THEY DIDN'T NOTHING WRONG EITHER LEGALLY OR MORALLY
