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Wednesday, May 30, 2012

Let's Look at Jobs Another Way

You know how the liberals are off castigating Romney for Bain? For investing in failing businesses? And most grow but some fail? The entire liberal premise is that Romney and Bain and other private equity groups WANT to destroy companies and get all the money they can out of it. It doesn't matter how many Republicans try to explain this or private equity CEOs try to explain this, they just don't understand (or refuse to understand for the sake of their underinformed voters) that no one wins when a company folds.
Romney has about an 80% success record in saving businesses that were going bankrupt when they asked Bain for help turning things around. In the end, he created a net 100,000 jobs by successfully turning around most of these businesses that Bain helped during his time with the company. Sometimes that meant that companies had to scale down their number of employees for awhile, but don't forget that the alternative was to fire all employees as the company folds. In successful turnarounds, a profitable company can expand and hire more workers.
Now. Liberals accuse these companies of being in it for profit, for wealth, and not for creating jobs. Of course!
Rush Limbaugh had a caller yesterday on his program who explained this profit business more clearly than I've heard elsewhere:
CALLER: Yeah, I was just calling to make a correlation that everybody wants wealth creation over job creation. If an employee wanted job creation over wealth creation, they'd simply ask for the lowest wage possible so that every employer could create more jobs for the company.
RUSH: You know, this is an interesting point and one of the reasons that I wanted to take your call first, because I think you're really on to something. I think you're on to much more than maybe even you realize. Your observation is by no means insignificant. It's very significant. Americans want wealth creation over job creation. Would you say again what you expressly mean by that.
CALLER: That every single person, when they get a job, they're looking for the highest wage that they individually can get. They're not trying to look for the lowest wage so the company can create the most jobs. It's simple, natural, healthy self-interest.
What does this really tell us? It tells us that liberals have their premise wrong. Starting with the wrong premise will certainly not take us to the right conclusion, which is a growing economy and jobs.
Everyone acts in their own self-interest, but this helps other people along the way because the economy grows in wealth and jobs when we do this. This is capitalism. Every single job that was ever created in this country was made because of the pursuit of wealth! It's not like the alternative is working: all of Obama's government investments (err, taxpayer investments) in green energy (Solyndra is just the start) are going bust, costing their investors (again, us) and their employees.

*Congrats to Romney on officially wrapping up the GOP nomination with Texas. A longer primary hasn't hurt Republicans or voters at all, and people are coalescing behing Romney without a hitch. Rather, people have learned more about each candidate much earlier than they did under the old system, and were able to vote accordingly. Now our candidate is well vetted. Better vetted, in fact, than our current president. We're ready for this general election!

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