The Bain of Our Existence

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By: The Common Constitutionalist

So I guess “Venture Capitalist” or “Private Equity” are dirty words (unless it’s prefaced with Blackstone).

Years ago, Mitt Romney was a venture capitalist. If you listen to the mainstream media, you would get the impression that these companies, like private equity firm, Bain Capital, scour the countryside looking for struggling businesses. Without doing any research on the

Count Romula

companies viability, they swoop in, take over, fire everyone and sell off the carcass. That’s seems to be the way it is portrayed.

But that’s the private sector for ya. Those in private industry are looking to do one thing; make money. They don’t seem to understand that the sole purpose of the private sector is not to make a profit, but to create jobs (preferably union). Private industry is to create jobs, provide a living wage, pensions and benefits for their unionized workers and since profit is evil, all will be paid for by that large pot of gold hidden under every CEOs desk.

As an aside, I love the term “workers”. It’s such a wonderfully socialist/communist term. Like the worker bees in Woodrow Wilson’s grand “beehive” vision.

The public sector, or government, surely knows better how to invest in struggling companies.

Just imagine what would’ve become of General Motors if the government hadn’t stepped in and bailed it out with our money. GM would have been forced into bankruptcy reorganization. Union contracts would’ve become null and void and would’ve had to been renegotiated. Tragic! Many workers would’ve lost their jobs. In the private sector we would call these people dead wood, or non-essential personnel. This, of course, would have been completely heartless.

Lucky for us, our benevolent government stepped in and saved the day. They rescued the struggling healthcare auto company thus saving the jobs of many thousands of workers. Those who are students of history understand that every company that is forced to file for bankruptcy reorganization must fire every employee and shut its doors.

Thankfully that didn’t happen. Our government, with great foresight and great courage gave billions and billions of our dollars to save those union jobs. (Notice I said gave and not lent billions of dollars. We have not been paid back in full and likely never will. Bless them for that.)

In doing so, it was mandated that only about 800 Chrysler and almost 1100 GM, nonunion dealerships close. I’m sure those dealerships and all their employees were more than happy to sacrifice themselves in order to save the UAW.

It was all for the greater good. Workers of the world unite! Unless you worked for a dealership.

You see, private industry is like a casino and the private equity firms are like the high rolling gamblers that destroy everyone that stand in the way of their prize; big profits. Just ask those poor saps who work at Sealy Corp. or Staples or Sports Authority, Domino’s Pizza, Toys R Us or Dunkin Donuts, just a few of Romney’s more famous victims. Oh wait; they added thousands of jobs. Forget I said that.

Government investment in companies is where it’s at. Success stories abound.

Just look at the laundry list of prosperity from government largess.

Let’s see; give me second. I’ll think of some. Got it! How about Solyndra, Solar Trust of America, Energy Conversion Devices. Then there’s Evergreen Solar, Solar Power Industries and Spectrawatt. They took our money and parlayed that investment into viable growth companies employing many workers.

What? They all went belly up? No workers, no nothing? How could that be? I’m sure the experts in the government did countless hours of research and viability studies before handing out billions of dollars. That doesn’t sound all like our government. It sounds more like those wicked private equity firms.

In closing if I may be serious; people start and invest in business to make money. Sure, that’s not the only reason, but it’s the main reason. Someone has an idea for a better mouse trap so they start company to build the mousetraps. If they didn’t think they could make money, they wouldn’t start. They don’t set out to start a business with the aim of hiring people. That is the result of hard work and growing the business so one has to hire people.

The same goes for venture capitalists or private equity firms. They spend countless hours researching before they invest in an already struggling industry. It is of course a risk, but it is an educated risk. They don’t just throw money at something and hope for the best like the government does. They can’t afford to. Unlike the government, they don’t have unlimited funds to waste.

No matter how much research these private equity firms do, not every investment will yield success and some of the companies won’t make it. That’s called life.

It is however, almost a sure bet, that if the venture capitalist or private equity firm didn’t invest in the company, said company wouldn’t survive. With the infusion of new capital, they at least have a chance and worst-case, they may get a few more years of life that they wouldn’t otherwise have had, like GST Steel.

About the Common Constitutionalist

Brent, aka The Common Constitutionalist, is a Constitutional Conservative, and advocates for first principles, founders original intent and enemy of progressives. He is former Navy, Martial Arts expert. As well as publisher of the Common Constitutionalist blog, he also is a contributing writer for Political Outcast, Godfather Politics, Minute Men News (Liberty Alliance), Freedom Outpost, the Daily Caller, Vision To America and Free Republic. He also writes an exclusive weekly column for World Net Daily (WND).

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