With four months remaining in the interminable contest to become chief occupant at 1600 Pennsylvania Avenue NW, we are finally seeing where the candidates can draw their battle lines. How telling is the tale of the tape so far?
On the left, President Obama has been criticized by his base for not being liberal enough when called for the most. On the right, Mitt Romney has been criticized for his lack of conservative credentials. On the left, the base thinks that electing the guy on the right would send the country back to the days of rugged individualism. On the right, the base thinks that re-electing the President would send the country careening into the sea of socialism.
For all of their perceived differences, they each have similarities. Both have ties to Massachusetts, with the President an alum of Hahvid and Mister Romney once the governor. Both politicians passed a health care reform package that included a mandate to carry health insurance, lest one wishes to pay a tax (or a penalty depending upon who’s asking). Mitt Romney is a multimillionaire. So is President Obama. If the President’s ads are to be believed, Mitt Romney is a corporate raider. What the ads don’t tell you is that President Obama is also a corporate raider.
It’s true folks, the President is just as guilty of being a corporate raider. In fact, I could argue that since his campaign has decided that this is the winning issue, the President could be said to have a worse record in this area.
Perhaps the President’s ads could be geared towards the female college freshman demographic. Mitt Romney, the dapper venture capitalist and father of five, grows fangs under the glow of lower-Manhattan moonlight and sucks the blood, sweat, and tears from the Holson Burnes picture frame factory in “swing state” New Hampshire. Various ads allude to this theme, and most of the claims in the ads have been debunked. Even the Washington Post, allegedly a sympathetic publication, is saying that it’s time to shift the sails.
Private equity firms certainly have invested in companies whose survival is dependent upon finding alternate means of manufacturing or routing of services. Isn’t the deal in general designed to provide firms with an infusion of capital in exchange for a return on investment? Sometimes the businesses still fail, and domestic plants are shuttered. People eventually lose their jobs.
But What if there were no capital infusion? Wouldn’t that simply accelerate the demise of the subject company? Capital is a necessary component that helps secure faith in America’s firms. We should be encouraging more venture capital, not vilifying it.
Even Newark mayor Cory Booker, a surrogate of the Obama campaign, understands that some of his constituents creep along the Lincoln Tunnel to get to work at their respective firms, some of them likely invested in Newark’s revitalization. Frederico Pena, formerly Secretary of Transportation and currently a surrogate for the campaign in Denver (where Obama was nominated in 2008), is a partner with Vestar Capital Partners. Vampires are everywhere nowadays!
But even the President himself has a record as a corporate raider. While Governor Romney was heavily involved in private equity, President Obama has performed the very same tasks with public equity.
Among his accomplishments, the President lays claim to saving America’s auto industry. But how was this done? The US government took a 61% common equity stake in a reformed General Motors Company LLC. Bondholders, ordinarily preferred in these proceedings, were told to wait in line. Immediate restructuring aside, long-term plans for this company were to reduce its dealerships by roughly 40 percent (1,600 in all) and to close 13 plants while shedding four brands. All told, that is a loss of 22,500 jobs.
As with any equity firm, there are failures (assuming the auto deals are successes). The government used funds created by the Energy Policy Act of 2005, which was later rolled into the stimulus of 2009, to provide California solar panel manufacturer Solyndra with more than $500 million in loans. The firm’s revenue for 2010 was $140 million. The government was trying to make chicken salad from inferior ingredients. Other firms in this sector like Nevada Geothermal and Abound Solar have seen $160 million in loans evaporate in the sweltering summer heat.
So while the President assails Governor Romney for his supposedly spotty record in private equity, has he done any better with public equity at his disposal? In any event, we aren’t likely to see an end to the Bain attacks. Despite all the Pinocchio awards and hand slaps from fact checkers, the theme continues. Democratic Party strategist Chris Hahn sums it up, “If it works, keep doing it. That’s the way politics is.”
I’ve always said that Democrats like trickle down economics as much as Republicans. What they can’t agree on is who gets to do the trickling. I’m seeing all of these ads and the thin justification for them, and I’m beginning to think that it isn’t actually raining.
Gerry Maynes says
Gosh and your preference is the inept Bankrupty in Chief Obama. No new jobs created, nothing to show for his time inoffice but the misery of his people. Romny created many jobs in his time and saved many a pension. Including my Dads. When Finast or First National Super Markets closed300 stores in the mie seventies’. leaving 10,,000 people with out jobs, Mr Romney purchased most of these leases and rehired most of the Store Managers and associates at similar wages and benefits. My Dad in his late 50!s was able two work as a Store Manager untill he was Sixty Three. So donT buy the Blaloney that the Obama machine is offering. Mr Romney is a Hero to this day in my Mothers Home
What is more the Washington Post has refuted most of Obama!s Romney B laine Capital as False.
Buts thats Obama , can!t run on the truth, can!t tell the truth.
Steve Payne says
You got your rugged Rs mixed up. Reagan was the rugged one. Even Bush 2.0. was. Can you see Romney landing on an aircraft carrier and then taking those baby steps across the deck.
Gerry Maynes says
As much as I think that Ronald Reagan was the second greatest president of the 20th century,( Behind FDR), I am not confused Between Romney and Reagan. Just as their could only be one Lincoln, one Washington, one FDR, oneTR, our country has had its one Reagan. Just as we have had only one Nixon, one Bucannon,one Jimmy Carter, one Harding as one term awful presidents, with gods mercy, Obama will join that list.
Is Romney , Reagan no. But much as the Democrats and the press of the 1980!s tried to paint Reagan as this senile war Mongerer, out of touch with the average American. The same team is trying to protray this extremly capable person as a greeedy slime bag is verry similar. I am guessing the American people o0n election day will send the national excuse maker hhome to the lecture circuit and Mr Romney to the White House. If Romney was Reagan thyis poor excuse of a president would be 40 points behind and looking for a book contract.
MB Troup says
The term rugged individualism is rooted in the days of the Homestead Act. Reagan wasn’t even born. There was a world without Reagan – who knew?
Gren Whitman says
Obama is leading in three key states (Florida 51-45; Ohio 50-44; and Pennsylvania 53-42), and 9 out of 10 voters of both parties in these states report their minds are made up. (Quinnipiac University/CBS News/New York Times. 7/24-7/30. Likely voters.) If Mitt’s performance over the past week indicates what’s in the offing, the GOP would do well to find another candidate. Quickly.
Gerry Maynes says
Hi, Yes Jimmy Carter was leading by similar margins at this time against Reagan. Then the voters came home from vacation and the kids went back to school and mreality hit and Americans paid atention. Remember the last debate Reagan My fellow Americans can you honestly say that you are living better today then you were four years ago then by all means vote for my worty opponet But if you are not then please vote for me next Tuesday Election Day. Americans vote our pocketbooks and no one that I know except Fisker Executives are livi9ng better today then they were four years ago.
Bye Bye Mr President, enjoy your earned retirement Remember the old Carter joke President Carter most love poor people because he sure has made plenty of them! It could apply to Mr OBama as well.
Gren Whitman says
I hear the owners and executives of Etch-A-Sketch Corporation are also enjoying suddenly higher profits, thanks to Mitt-related publicity.
Gerry Maynes says
Hi Yes the poles are erily similar to Jimmy Carters at the same time frame before his massive beating by REonald Reagfan that fall. People then and now arent paying much attention. They are at the beach, the kids are home and its hot out. AS SOON AS THE KIDS ARE BACK MIN SCHOOL AND MOM AND DAD ARE BACK AT WORK REALITY SHOULD SET IN! Reagan was not supposed to win rigth up to the election. Allo he won was about 48 staetes. Remeber what Reagan said Are you better off today then you were four years ago then vote for my worthwile opponent if not then please vote for me next Tues day election day. The same holds true today as it did then, Mr Obama will be around for 35 years to wine that it was not his fault etc etc etc.
Gren Whitman says
Mr. Maynes seems — shall we say? — a tad fuzzy about the 1980 Carter/Reagan campaign.
Right after the 1980 primaries, a Gallup poll reported that 58 percent were dissatisfied with Carter, and Reagan was ahead from the git-go.
But, why bother to compare 1980 and 2012?
Mitt Romney’s incomparable flubs and his refusal to open his 2009 tax return have placed him on the slippery slope toward defeat.
If the GOP wishes to win the White House, it needs to nominate someone else, indeed — aside from Bachmann, Cain and Trump — practically anyone!
Gerry Maynes says
Actualy the polls had Mr Carter leading Reagan by 6 points prior election day. Also mthe currewnt polls that are being tossed around today should have Obama leading, and why not twixe as many Dems were asked then Repuiblicans in at lwast two of them. But the most importaqnt part of the recent polls were that Dems had fallen behind in excitement over thier candidate, then the republicans who were at 50 Percent. Simply puit that could mean that a lot of Dems will stay home on election day or cross party lines to vote. As Clinton said Its about the economy stupid! and it was in his case and it will be in this case
John Leek says
Corporate Raiding? But with one big significant difference. Profits made from buying and selling off the pieces of companies that Romney, as CEO of Bain Capital raided, went into his pockets and the pockets of his other Bain partners, greatly enriching those few already well off. Any beneficial return on the O’Bama administration public equity bail out of a company has gone back into public/government coffers.
Gerry Maynes says
B unk! The Eashington Post has refuted most of this garbage about Romney and Bain. But what can you expect of the Boston Globe and The Ny Times. Liberal Rags Period. Remember that Hot Ny Times article on John Mccain chasing a female lobyist, with his pants down on the floor and his valentine day boxer Shorts on. That was proved to be garbage and so is this. But mr Obamas role in Rifle gate is not checked out by the press and Executive Priviledge out of the Watergate Days lives on.
If the President hangs on to win and the Republicans gain controll mof both houses of goverment. Well we just migth find out what he is hiding and we could be reliving Nixons mess all over again. All the time nothing getting done to pay the deficit or create reall jobs .
MB Troup says
“Any beneficial return on the O’Bama administration public equity bail out of a company has gone back into public/government coffers.”
He’s Irish?:-)
This is a case of accepting credit for success and deflecting blame. The net of it is that we’re still in the red on the deals. So any “saving” here has been done, in part, to placate the base. Of course we’re neglecting the big question: is picking economic winners and losers a proper role for the Feds?
Lainey Harrison says
Governement has always been involved in picking the winners and losers. Look at the tax code to see that. Bush tax cuts are a prime example….lower taxes means more jobs, right? Oh, crap, I forgot, the rich have had tax breaks for the last twelve years and yet there are no jobs….
And if the question is I am better off today or 4 years ago, well, I can say today.
Gerry Maynes says
hi, that makes one of you. what was it phoneygreen companies that went bankrupt or was it battery made autos that go kaboom in the nigth due to faulty batteries. or do you love a morning view of the verry empty and weed infested former gm plaqnt now fisker auto plant.
it must employ bat least 6 people, none making cars . this should be photograped and used as the official picture of the obama administration