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« The Great Pension Heist is Discovered (updated 17jul12) | Main | Transhumanism, Cosmism, and the Singularity »

14 July 2012

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billy T

Silly Nancy. And then Obama said it wouldn't raise our taxes and it will pay for itself and even reduce the deficit. ROTFLMAO. Stop it, you guys are killing me!! Too funny

TomKenworth

One thing never discussed. The older you get, the more likely you are to use medical resources. Why not index the percentage of income paid for universal health care to age? And of course no caps on amounts paid, so a wea;thy

TomKenworth

The previous comment sent itself, before I even finished writing, so delete it:

One thing never discussed. The older you get, the more likely you are to use medical resources. Why not index the percentage of income paid for universal health care to age? And of course no caps on amounts paid, so a wealthy 88 year old making 10 million per year from investments might pay 40%, or 4 million per year to the health care system, I'm sure poor baby can live on 6 million per year.

TomKenworth

Now I see that Mary Matalin has figured out the final copout for outsourcing, while attempting to deflect Romney's role in outsourcing. "It's a consequence of the global economy." Instead of taking responsibility for decisions made in corporate boardrooms, the Republicans are going to say that the God of Global Economy made them do it. Wow! If nothing else, Romney definitely held stock in Bain as it outsourced, and that is a form of support.

George Rebane

TomKenworth, your socialist nostrums are priceless. You know how much money is sufficient for a man to live on. You berate people who invest in companies participating in the global economy. People get blamed for holding stock in companies that outsourced (BTW, Bain created more jobs in the US than it did overseas.

Your vituperation is so precisely directed that it bypasses all the pension funds, IRAs, etc for liberals that also invest in companies that have been outsourcing jobs for years, let alone the legions of progressive plutocrats who do so even as I write.

Holier than thou must sure feel good to all them Dems who are lambasting Romney and the 'rich', while comfortable in the knowledge that their constituents are way too dumb to call any of these exhortations to question.

TomKenworth

George, there is no question that we all participated in the Great Outsourcing, but most Americans did so because there no longer products for them to buy, that were made here. "Bain created more jobs here than overseas?" How many did Bain destroy to then go on and "create new, and mostly likely fewer than before," jobs. Of course you can argue that the jobs were already dead, when Bain arrived on the scene. The real question is, "do we want an America of 99% serfs paid the global minimum wage, or do we need to rethink what's going on.

George Rebane

TomKenworth 1231pm - I have done my rethinking on the problem of wealth redistribution in these pages for the last five years, and have made concrete proposals. The only reply from the progressives has been that governments need to tax more, spend more, regulate more, inhibit more enterprise, and eliminate more liberties. Our legacy is the 20th century history of collectivism, and today's poster child of progressivism, the ongoing disaster in the eurozone.

(The chorus 'It was the bankers' fault.' won't wash. Banks can neither tax, nor regulate, nor print money. To the extent banks can cause mischief, they can only do so as full working partners in collusion and corruption with government.)

Russ Steele

TomKenworth you asked the question " How many did Bain destroy to then go on and "create new, and mostly likely fewer than before," jobs"

Do you know how to do research on the Internet. Here is your answer and it took all of ten minutes to find HERE.

How many jobs did Romney and Bain Capital create?

At the end of 1998, Staples had more than 42,000 employees, Sports Authority had almost 14,000, Gartner Group had almost 3,000, and Steel Dynamics had over 500. So at the beginning of 1999, when Romney left Bain Capital, these four companies alone employed almost 60,000 total employees. While some of the job growth at Sports Authority came from acquisitions, there is no doubt that these four companies created tens of thousands of jobs over the period.

Fast forward to today. By the end of 2011, Staples had about 89,000 employees. Sports Authority is now a private company. The last time it reported employee numbers, in 2006, it had 14,300 employees. In addition, Gartner Group had over 4,400 and Steel Dynamics had over 6,000 employees. Using the most recently available data, these four companies alone employed almost 125,000 total employees.

Bain Capital also successfully turned around several existing businesses during Romney’s tenure. For example, Bain Capital bought Wesley Jessen Vision Care for $6 million in 1994. It had been a division of Schering Plough and was not profitable. Bain Capital and a new CEO turned it around and sold it to Ciba Geigy for over $300 million in 2001. When it was sold, it appears to have had 2,600 employees. Today, the company is part of Ciba Vision.

Overall, then, the companies Bain Capital funded under Romney have created tens of thousands of jobs using any measure.

How many jobs did Romney and Bain Capital destroy?

A Wall Street Journal article mentions four companies—American Pad & Paper (Ampad), Dade Behring, DDI, and Stage Stores—that Bain Capital made very profitable investments in and took money out of; later, the companies went bankrupt.

ooo

When Dade went public in 1996, it employed 5,500. This increased to 7,400 with an acquisition in 1997. Employment declined thereafter, reaching a bottom of 6,000 in 2002. It rebounded to 6,400 in 2006, just before the sale to Siemens. So, overall, employment declined by 1,000 from its peak in 1997 to its final level in 2006. This was undoubtedly unpleasant, but does not seem to be as dire as portrayed.

DDI produced circuit boards for the telecom business. It went public with 1,800 employees in 1999. It then made an acquisition to get to 3,200 employees. After the tech bubble burst, the company’s business declined and it went into chapter 11 bankruptcy. Like the other two companies above, DDI came out of bankruptcy and today has almost 1,700 employees and is profitable. So, overall, employment declined by 1,500.

American Pad & Paper (Ampad) was a manufacturer and marketer of paper-based office products. In 1992, Bain Capital acquired Ampad from Mead. Bain Capital and new management made “additional acquisitions in order to enhance the company's scale, broaden its product line, expand upon its national presence, and strengthen its distribution capabilities.”2 It went public in 1996, but declined soon thereafter, going into chapter 11 in 1999. The different pieces of the business were sold thereafter. Employment was 4,105 in 1996 when the company went public. It had declined to 3,800 by 2000, the last employment numbers available. So, as of 2000, employment had declined by 300.

When you combine the increase at Stage and the decreases at the other three companies, you end up with a net increase in jobs of 1,100.

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